Key Benefits:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
1
DECREE Nº 360.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
WHEREAS:
I-That the Code of Commerce issued by Legislative Decree of 8 May 1970, published in the Official Journal No. 140, Volume 228, July 31 of the same year, modifies substantially the commercial institutions, so it is necessary to issue the appropriate procedural law for the due compliance of the said Code;
II-That by the nature of the commercial matters, the procedural law that is
issue must have as main objective, the decision of the controversies by means of procedures that guarantee an early and effective resolution, as well as the effectiveness of the rights recognized in titles that bring about execution;
III-That the procedures to be established should be entered into a
law to facilitate the achievement of the purposes indicated in the preceding considerations, which must be incorporated into the Code of Civil Procedures, for its best application;
THEREFORE,
in use of its constitutional powers and Joint initiative of the Supreme Court of Justice and the President of the Republic through the Minister of Justice, DECCRETA, the following NOTE: THIS LAW IS IN FORCE ONLY IN CHAPTER XI (ARTS. 77 TO 119). COMMERCIAL PROCEDURES LAW CHAPTER I PRELIMINARY PROVISIONS
Art. 1.-The procedures applicable to judgments or commercial proceedings shall be governed by the provisions contained in this law.
Art. 2.-Commercial judgments are summary. Except for the following:
1. Those that are intended to require compliance with obligations contained in documents that bring execution;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
2
2. Those who, by reason of their amount, must be dealt with in a verbal manner, in accordance with the provisions of Title I of the Second Book, Part One of the Code of Civil Procedures;
3. Bankruptcy and suspension of payments; and
4. Those who have a special procedure pointed out.
Art. 3.-Judges and courts with jurisdiction in civil matters shall be competent to know in
commodity.
Art. 4.-In the case of commercial trials, all ordinary and extraordinary resources established for civil trials shall take place as soon as they are applicable to them and with the modifications expressly established by this law.
Art. 5.-The location to answer the request shall be made to the trader in person even if he is a minor of the persons in the ordinals III and IV of the Art. 7 of the Code of Commerce, or to his factors or managers. If the defendant is absent from the Republic and does not have any factors or managers that can be deployed, the Code of Civil Procedures will be in place.
The notifications and citations that occur in the trial, be made to the trader in person, to his factors or managers; but if he has constituted procurator, they shall be made to him. CHAPTER II NON-CONTENTIOUS PROCEEDINGS
Art. 6. The child who wishes to exercise the trade and whose legal representative or keeper denies the authorization, shall be presented to the competent judge of his domicile to request, even verbally, the judicial authorization. The judge shall draw up the minutes, stating the request of the child, the circumstances relating to him, the name and address of the legal representative or keeper. If the application is submitted in writing, it will not be necessary to lift the report concerned. The child must present the certification of his birth certificate.
Art. 7.-The judge shall, in summary, and with the summons of the legal representative or the child's keeper, receive the evidence that is presented on the applicant's capacity, seriousness, expertise and solvency, or the evidence adduced by the legal representative or the keeper to substantiate his refusal, without prejudice to any of his or her own initiative on such extremes. After the probative term is completed, you will decide the appropriate resolution.
Art. 8.-If a minor who does not have a legal representative, he shall apply for judicial authorization to exercise the trade, the judge shall follow the investigation referred to in the previous article, with the intervention of a special curator who shall appoint the same judge. effect.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
3
Art. 9.-The proprietor of a registered trade mark appearing reproduced or imitated in products of the same kind as those which he produces and distributes, imported from abroad, may request in writing the competent court, the court order from the customs office of the Republic, referred to in the ordinal I of Section 21 of Art. 584 of the Code of Commerce.
The application shall accompany the certificate of registration of the mark or certification of its seat and an
copy of the product that holds it.
The judge will give the order, provided the following circumstances are present:
1) it is an imported product;
2) That it is determined by an expert opinion, that the imported product and the one that protects the brand are of the same nature and are comprised in the same class in the special law of the matter;
3) That the brand that is being defended is in place and the one that is improperly used, not this
registered in the country. This request will be processed without cause formation.
The provisions of this article regarding the marks, are applicable in the relevant, to the emblems, samples and slogans.
The decision of the judge does not allow any recourse; The right to save those interested in airing their actions in summary judgment.
Art. 10.-If there is no agreement in the case referred to in Art. 1407 of the Code of Commerce, any of the parties to an insurance contract, the competent judge may be asked to appoint experts to assess the damage caused by the accident.
The request shall contain a statement of the facts and the names and addresses of the parties.
The judge, without any procedure, shall resolve the matter; and if the decision is affirmative, it shall appoint the experts.
Art. 11.-It may be possible to promote judicial notice or notice of a notarial act, in the following cases:
a) In the case of the existence or transfer of a credit.
b) When payment is required or a payment is made.
c) When a contract is reported that supports such a procedure.
d) When the assumption of an obligation, the fulfilment of a condition or a term, the existence of a vice in the thing that has been the object of a
is disclosed.LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
4
negotiation, performance of a claim and, in general, that of a fact or act which, by the will of the parties or by law, has to produce legal effects.
CHAPTER III ARBITRATION procedure
Art. 12.-REPEALED (D. L No. 914/02)
Art. 13.-REPEALED (D. L No. 914/02)
Art. 14.-REPEALED (D. L No. 914/02)
Art. 15.-REPEALED (D. L No. 914/02)
Art. 16.-REPEALED (D. L No. 914/02)
Art. 17.-REPEALED (D. L No. 914/02)
Art. 18.-REPEALED (D. L No. 914/02)
Art. 19.-REPEALED (D. L No. 914/02)
Art. 20.-REPEALED (D. L No. 914/02) CHAPTER IV PRE-DEMAND ACTS
Art. 21.-In commercial matters, they are acts prior to the application, those included in Title III of the First Part of the First Part of the Code of Civil Procedures and, in addition, the following:
1) The judicial display of the objects that check the unfair competition referred to in the first paragraph of Article 493 of the Trade Code.
2) The provisional order to cease acts of unfair competition, as referred to in the
of Article 493 (2) of the Code of Commerce. Trade Code.
3) The signature of the replacement copy of the title in the case of point 31 of Art. 930 of the Trade Code.
4) The exercise of the right of retention contemplated in Arts 957 and 958 of the Code of
Trade.
5) The requirement to hire, as provided for in Art. 965 of the Code of Commerce.
6) And the others established by this law.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
5
Art. 22.-The display of the objects referred to in ordinal 1) of the previous article shall be processed in accordance with the Arts. of 156 to 159 of the Code of Civil Procedures.
The applicant shall justify its quality of the merchant and the property or any other right under which the commercial undertaking is operated which is said to be harmed, as well as the quality of the trader of the author of the unfair competition and his property or any other right which enables the exploitation of the business enterprise, through which the mentioned competition is performed.
Art. 23.-The application referred to in the previous article is received, if the judge considers that the exhibition irrogates to the required party, may order that such damages be used for the case in which, in the judgment that is subsequently promoted, Unfair competition will be proven.
The required party may, in any state of the proceedings, request the caution, provided that it sufficiently merges its provenance, to the judge's prudential judgment.
The judge shall determine the value of the the caution, prudentially estimating the damages that may be caused. The course will consist of any of the above mentioned in Art. 61 of this law.
Obtained firm judgment that recognizes unfair competition, the caution will be cancelled.
Art. 24.-The holder of a title which is in the case referred to in Article 930 of the Code of Commerce, shall request in writing the judge before whom he should initiate any action from the rights incorporated in it. the title, indicating the name and address of the signatory who has refused to sign the new copy, and asking that he be summoned to sign in the presence of the judge. With the application you must present the remaining portion of the old title, which must contain the signing of the required person, and the new copy that is to be signed.
The application will be received, the judge will order the appointment of the required. If he does not appear, he will be summoned for the second time at the request of a party or of his office, preventing him from attending, the judge will sign the title in absentia.
Art. 25.-If the requested person concurs to the appointment and refuses to sign the document, the judge at the request of a party or of its own office, shall prevent him from entering into a period of not more than thirty days the application for nullity of the document in question. This period shall be counted from the day following that of the respective notification.
If the requested party fails to present the claim for nullity within the above term, the judge shall sign the document in absentia.
Art. 26.-In the same way as the one indicated in the previous articles, the signatures of the endorsements and avalists will be required, in the duplicates of the letter of exchange released in accordance with Art. 781 of the Code of Commerce.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
6
Art. 27.-The creditor who decides to make use of the right of retention entered in Arts 957
and 958 of the Code of Commerce must notify the debtor, judicially or through the notarial act.
From the next day to the of the notification, the debtor may occur to the judge by offering the payment of the debit, proving to have deposited the amount of the same in the form established in Art. 953 of the Code of Commerce, or offering to guarantee the debit to the satisfaction of the creditor.
The judge, received the payment request referred to in the previous paragraph, will send the For three days, the creditor shall, with whatever he answer, or in his rebellion, resolve whatever is appropriate. If the creditor does not accept the payment offered to him, the judge shall decree the entry in accordance with the rules of the common law.
If the debtor offers to hold the debit, the creditor shall declare if he accepts the guarantee; but if he does not accept it or shall not respond to the hearing referred to in the foregoing paragraph, the judge shall do so subject to the provisions of Art. 61 of this law.
Made the deposit, the entry, accepted or accepted by the judge, shall be ordered by the judge. of the retention. The judgment shall be notified to the creditor, who shall have a period of three days in which to deliver the retained things; if he does not do so within that period, he shall be liable for the damage which shall be caused by his failure, without prejudice to criminal action. corresponding.
Art. 28.-The period laid down in Article 959 of the Commercial Code, counted from the notification referred to in the first indent of the previous Article, without the creditor having filed the claim claiming the debit, has elapsed. by virtue of which the right of retention was made, the debtor may ask the judge to order the cessation of the retention, with the effects outlined in the last paragraph of the previous article.
Art. 29.-Who is created with the right to require a company to conclude a contract, within the meaning of Art. 965 of the Code of Commerce, shall be presented to the judge of the place where the required undertaking is situated, requesting that it be placed to celebrate the contract in reference.
The judge will qualify the ends of the application, especially if the required company is required to contract. If the estimate originates, it will order the requested placement.
If the company will not be able to enter into the contract or will not answer, the requirement will have to be filed, which will be substantiated and decided in summary judgment. CHAPTER V TESTS
Art. 30. The evidence in commercial matters shall be governed by the provisions of this Law and Chapter IV of Title I of the Fourth Book of the Code of Commerce. The rules contained in the Civil Code and the Civil Procedures Code will apply in all the non-foreseen.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
7
Art. 31.-In order to graduate the probative force of the accounting records to be carried by the traders, the following rules shall be observed:
10 The records of the traders shall prove against them, without any evidence to the contrary; but accept the seats which are favourable to you, you may not discard the seats which are harmful to you, but, having consented to this means of proof, will be subject to the result that they throw as a whole, taking into consideration all the relative seats to the litigious issue;
20 If in the seats of the register carried by two No compliance,
and those of one would have been carried with all the formalities expressed in the law, and those of the other suffer from any defect or lack of the legal requirements, the seats of the records in rule they will make faith against the defective unless otherwise proven by other admissible evidence in law;
30 If one of the traders fails to present their records or will manifest them, they will make faith against him of their adversary, carried out with all legal formalities, not to show that the lack of such records is appropriate of force majeure and except always the proof against the seats displayed, by other means admissible in judgment;
40 If the records of the merchants carried with all the legal requirements force
contradictory the judge will decide agreement with the other probes verted in the process.
Art. 32.-The judge may order, at the request of a party or of its own office, the display and recognition
of the accounting records and other documents related to the turn of the commercial enterprises, when the holder has an interest or responsibility in the case in question.
The recognition shall be carried out in the merchant establishment or office of the trader, in the presence of the trader or the person whom he designates, prior to the date and time to verify it. If the trader or whoever represents him is not present at the appointed time, the diligence shall be carried out without his assistance.
If the trader does not provide access to the accounts or does not permit his/her recognition, he/she shall incur the penalty. established in Art. 449 of the Code of Commerce.
The recognition referred to in the preceding paragraphs shall be in the case of seats and documents relating to the dispute in respect of which the exhibition has been decreed.
In cases of liquidation, universal succession, bankruptcy, suspension of payments and in others that, in the case of the general recognition of the accounts and other documents relating to the rotation of the commercial undertaking may be decreed, at the request of a party or of an office, at the request of the court or tribunal.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
8
Art. 33.-Where obligations contained in a securities securities are claimed by making use of the exchange rate, it is essential proof that such value is indispensible and cannot be supplied by any other means of proof than this.
Art. 34.-in respect of the contracts mentioned below, the following rules shall apply:
1) The contract of transport of things shall be tested with the respective transport document; but the absence of such a document may be provided in the cases and in the As provided for in Arts 1331, 1338 and 1343 of the Trade Code.
2) Bail and Reafirenchment contracts will be tested with the respective policies;
but in the absence of such policies, they may be tested by any other means, if there is a written test principle.
3) The insurance contract, its additions and reforms, must prove with the respective
policy or with the copy or duplicate of it, referred to in Art. 1353 and 1355 of the Code of Commerce.
4) the contracts of capitalization, savings and savings and loan for the acquisition of
goods, will be tested with the respective titles.
5) Bank deposits are current account savings, held in firm, withdrawn with prior notice or subject to restrictions, will be checked with the constances, books, receipts or credit notes that the depositary bank has delivered to the depositor or saver, in their respective cases, or with the replacement books, in accordance with Arts 1193, 1198, 1207 and 1219 of the Commercial Code.
The lack of the proof documents of the contracts and operations referred to by the
numerals from 2 to 5 of this
provisions contained in Chapter XIII, Title II, Third Book of the Code of Law of the European Union, the provisions contained in Chapter XIII, Title II, Third Book of the Code of Trade and Chapter VII of this Act, relating to the replacement of securities, are applicable to cases of loss, destruction or deterioration of the documents referred to in this article.
Art. 35.-in the cases referred to in the second indent of the preceding Article, the accounts of the undertaking issuing the documents referred to in that Article, displayed and recognised, check the existence and the amount of the obligation claimed and will have part confession value.
Art. 36.-The photocopies of instruments in the judgments and proceedings of a commercial character, duly confronted with their originals shall have the same evidential force as the instruments photocopied. In the case of securities, the person concerned shall be returned with an indicative reason that the judgment is already being deducted from the respective action.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
9
CHAPTER VI DISSOLUTION AND JUDICIAL SETTLEMENT OF SOCIETIES
Art. 37.-The action of dissolution of a company, for the existence of one of the causes referred to in the Code of Commerce, shall be processed in summary judgment. The applicant must verify his or her quality of partner or interest, as a prerequisite for the admission of the claim.
If this is a society of persons, the quality of the partner will be checked with the social writing in which the quality or with the corresponding certification of the seat of registration of the same in the Register of Commerce; in both cases, it will be necessary to add authentic proof that this quality has not been modified. In the case of a capital company, the quality of the partner shall be verified in accordance with the provisions of Article 146 of the Trade Code.
If the interest cannot be credited with an instrument test, a prior incident shall be established, summarily, reducing the test term to four days.
Art. 38.-When in accordance with Arts 189 and 356 of the Code of Commerce, any partner, person concerned or the Office of the Prosecutor General of the Republic, if appropriate, shall attempt to sue the dissolution of the company, shall occur to the judge the effect of the fact that, as a prior act, it grants the period referred to in the second subparagraph of the last provision cited.
If within three days of the expiry of that period, the deficiency is not to be checked, it may be The Court of Justice of the European Court of Justice of the European Court of Justice statement declaring the dissolution.
Art. 39.-ITEM FIRST REPEALED BY D.L. 641/2008
SECOND REPEALED BY D.L. 641/2008
The settlement shall be conducted subject to the provisions of Chapter XI of Title II of the First Book of the Code of Commerce.
Art. 40.-In the cases of Arts 343 and 344 of the Code of Commerce, the action of nullity may be exercised by the Public Ministry or by any person who is of interest, except for the members who have intervened in the conclusion of the contract.
In the case of Art. 345 of the same Code, the action of nullity shall be the responsibility of the Public Ministry or the partners who have not given their consent to the conclusion of the social contract.
The quality of the partner or the interest verify in accordance with the provisions of Art. 37 of this law.
The action shall be aired in summary judgment. On admission of the application, the judge will officiate at the Registry of Commerce for the preventive annotation of the same in the registration seat of the corresponding society. If nullity is declared in the judgment, which is executed, its dissolution shall be ordered.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
10
and settlement.
Executed the statement, the judge will be free to certify it for registration in the Trade Registry.
Art. 41.-If two cases are provided for in Arts 346 and 347 of the Code of Commerce, the action to request the liquidation shall be for any interested party or the Public Ministry. Prior to the proceedings of the trial, the judge shall specify the period referred to in the second subparagraph of the first of those provisions, in order to ensure that the company is constituted by legal formalities or fails to comply with the requirements laid down in the the law requires for its constitution. After that period without the company having complied with the requirement, it will give the application the proceedings of the summary judgment, and, if necessary, will pronounce judgment ordering the liquidation of the society.
Art. 42.-In the cases of Arts 353 and 354 of the Code of Commerce, the requirements ordered and expired by the judge have been made by the judge in accordance with those provisions, without the company verifying its regular existence or having carried out to the reform of the social pact, as appropriate, the judge will order in final judgment pronounced in summary judgment, the liquidation of the society in the first case, or the dissolution and liquidation of the same, in the second.
Art. 43.-In the judgment ordering settlement in the cases referred to in the three preceding articles, the judge shall appoint the liquidator.
The settlement shall be conducted subject to the following rules:
I) The liquidator shall have the following: the powers outlined in Art. 332 of the Code of
Trade; the partners will not be able to make any provision regarding the settlement process, but the agreements that they would be subject to will be taken by the judge.
II) Converted the goods cash, the judge of trade or at the request of the
liquidator appointed, will resolve approving the liquidation and ordering the distribution of the social mass in accordance with the provisions of the Trade Code applicable to the case. The certification of this judgment, duly registered in the Register of Commerce, will have the same effects of settlement writing.
Art. 44.-In cases of exclusion or separation of partners, the following shall be carried out:
I) The exclusion agreement of a partner, adopted in legal form, or the decision of
a partner to separate from the company, shall be notified judicially to the excluded partner or to the representative of the company, as appropriate. In the first case, the application which the company submits to the judge shall be accompanied by a certificate of the point of record in which the exclusion agreement has been taken.
If within 15 days of the date of notification, the excluded partner or the
company, as the case may be, will not present its opposition to the agreement or the decision that has been notified to it, the judge at the request of the party, will have by consent
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
11
the exclusion or separation of the partner.
Filed with the opposition within the indicated term, the judge will refer the parties to the notice of their rights in summary judgment. In both cases, the judge will order the filing of the proceedings.
II) If opposition is filed, the party that made the determination that motivates it
must sue the opposition in summary judgment, claiming the exclusion or separation, according to the case, and on the grounds that they are based on their claim. Such a claim shall be filed within 15 days of the notification of the order for which the parties have been referred to the parties to their rights in judgment. This term expired without the application being filed, the right of the party that had to exercise the action shall lapse, and the opposition shall be accepted without effect the agreement of exclusion or decision to separate.
III) Consentida the exclusion or separation of a partner or ordered by judgment
firm in case of the corresponding summary judgment, shall proceed to the liquidation of the part of the excluded or separated partner, in accordance with the provisions on the matter in the case of social writing, or failing that, to the agreements taken by the partners, unless the company does use, if applicable, of the power referred to in Art. 56 of the Code of Commerce, in which case the liquidation shall be carried out by the time limit laid down by the provision. The settlement deed shall be entered in the Trade Register, and shall have the same effects as those of a social modification deed.
IV) If the company refuses to practice the settlement, the partner excluded or separated
may require in summary judgment, and the value of the social right to be settled shall be determined by experts appointed by the judge in the probative term. The judgment will determine the form of payment, taking into account the provisions of Arts 56 and 57 of the Commercial Code and the economic and financial state of the company. The certification of the judgment in the summary judgment will be entered in the Register of Commerce and will have the same effects as those of a social modification deed.
V) The exclusion or separation of partners will have effects from the date of
enrollment in the Trade Record of the documents mentioned in the previous two ordinals.
CHAPTER VII JUDICIAL REPLENISHMENT OF SECURITIES SECURITIES
Art. 45.-In the form laid down in Art. 935 of the Trade Code, the competent judge shall apply to the competent judge. The application shall be admissible, the judge shall order the obligation to be made known to the obligors whose names and addresses are found in the application, and the publication of an
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
12
extract from it.
If the suspension and authorizations referred to in Art. 936 of the Code of Commerce are requested, the judge, having regard to the value of the benefits that the title incorporates, shall fix the value of the security to be provided by the applicant. The bail shall consist of any of the above mentioned in Art. 61 of this Law.
Art. 46.-The bail-out and approved by the judge shall be granted, the suspension and the authorisations requested shall be granted. If the suspension is decreed, the entities related to Art. 937 of the Trade Code shall be notified, by means of the offices, exhortations and requests that are necessary. If the authorizations are enacted, it will extend to the applicant certification of the respective car to enforce them.
Art. 47. Within the period of 30 days from the following of the last publication of the extract of the application referred to in the first paragraph of the previous article, any person within the meaning of Arts 938 and 939 of the Code of Trade, claim to have better right than the applicant, may be filed with opposition, which will be dealt with and will resolve in summary judgment.
Art. 48.-The time limit referred to in Article 47 has elapsed without any opposition, or declared without a final judgment, the judge at the request of a party shall declare the cancellation of the title, in accordance with the Article 941 and 942 of the Code of Commerce, ordering, where appropriate, the replacement of the goods in accordance with Art. 944, second paragraph of the same Code. If it is necessary to require the security referred to in Article 942 of the Ordinance, the judge shall describe it as being in accordance with Art. 45.
When the applicant, on the basis of Art. 943 of the Code of Commerce, requests the cancellation of the guarantee referred to in the preceding paragraph, the judge will proceed summarily. CHAPTER VIII EXECUTIVE JUDGMENT
Art. 49.-In commercial matters, the following documents are carried out:
I) Those included in Arts 588, 589, 590 ordinal 11 and 61 and 591 of the Code of Civil Procedures.
II)
III) The documents referred to in Arts 51 and 52, under the conditions that in such
articles are established.
IV) Cover other documents to which the Code of Commerce confide executive force, with the requirements and scope that the same Code determines.
Art. 50.-The securities shall have an enforceable force under the following conditions:
1) The exchange rate derived from the securities is enforceable without the need for
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
13
recognition of signature and no other procedural requirements; but the requirements laid down in the Trade Code must be filled to preserve the exchange rate, and those outlined in this law.
2) qualifications which may be submitted within a certain time limit for acceptance or
payment, will only be executive if accompanied by the corresponding protest notarial act; but the filing of such minutes will not be necessary in the following cases:
a) If they are annotated with effects equivalent to the protest, when such an annotation
is legally sourced;
b) If the title has been issued with no obligation to protect it; and
c) In cases where the lack of filing and protest only causes the actions against the others to expire (a) the parties to the agreement, but leave the action against the final obligation remaining, as provided for in the Trade Code. In these latter cases, it will not be necessary to record the title either.
3) The bonds or negotiable bonds and the coupons of the same for the collection of
interest, will have executive force, upon request of payment that at the request of the interested, will make the judge to the representative of the issuing entity, which must manifest within the term that is pointed out to him, the reasons that he has in order not to make the respective payment. The application shall be accompanied by the original measures of formal notice and the probative term of the respective judgment, the court of officio or at the request of a party, shall carry out personal inspection at the issuing institution, in order to establish whether the presented confront with the talonaries or titles that they are detached. If they do not confront, the defendant issuer will be acquitted.
4) The coupons of the shares for the collection of dividends, will be executive if they are
accompanies the documentation that checks the amount of the dividends that they incorporate. Such an amount may be established with the certification issued by the office exercising the supervision of the State or by the issuing company itself, or through the notices published by the latter. In any event, and as a preliminary act, at the request of the party concerned, the representative of the issuing company shall be required to pay judicially, in order to give him, within the term indicated to him, the reasons for not making the payment the coupons; and the original requirements of the order shall be accompanied to the application. The judgment, the judge of officio or at the request of a party, shall practice inspection in the issuing company in the respective probative term, for the same purposes indicated in the previous number.
5) The actions that have the right to be amortized, in whole or in part, will be
executive for the amounts to be amortized to the capital that they incorporate, provided that the documentation is accompanied by the right to amortisation, and prior to the request which is required by the person concerned, be made to
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
14
the company, so that within the term it is pointed out to you, indicate the reasons you have to deny it. The judgment, in the respective probative term, the court of officio or at the request of a party, shall carry out inspection in the issuing company to ascertain the origin or the origin of the amortisation.
6) The banking obligations are subject to the same requirements as bonds or
negotiable obligations.
Art. 51.-The constances, books or receipts extended by the institutions legally authorized when they receive deposits of savings or of any other class shall be executive, prior to the judicial requirement of payment made to whoever has the representation legal form of the institution. The representative must state within the term indicated to him, the reasons given by the institution not to make the required payment, and if he does not do so, it shall be recorded in the proceedings. The application shall be accompanied by the document issued by the institution and the original measures of the order for payment. The prior signature recognition will not be required.
Art. 52. Insurance and reinsurance policies shall be enforceable, provided that the documentation showing that the claimant is present is accompanied by the payment and that the insured event has taken place, as well as the amount of damage caused. The bail and reafientailing policies will be executive if accompanied by documentation that establishes that the amount secured or reestablished has become chargeable.
The securitisations-capitalization, savings and loan contracts and savings for the purchase of goods, they will be executive, provided that the documentation is accompanied that the claimant has filled the conditions to be entitled to the benefit that he intends.
In all the cases contemplated in this Article will not require prior recognition of the signature.
Art. 53.-If, as a result of an exclusive rule of law or for any other reason, some or all of the goods are landed, the judge shall free the new order to seize other assets belonging to the debtor.
The creditor will manifest that the value of the goods embargoed does not reach to cover the debit that it claims, the judge, after the favorable expert opinion, will decree the extension of the execution. Enlargement can be decreed in any state of judgment.
Art. 54.-When the execution is followed by securities, the executive judgment shall have the following special modifications:
1) Only the exceptions contained in Art. 639 of the Trade Code shall be admissible.
When the The defendant shall object to the exception of not being the signature attributed to him, or to the person appearing as his representative, or where the defendants are the heirs of the person who appears as a signatory and shall oppose such an exception, shall be practiced
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
15
in the trial the proof of the signature of the firm whose authenticity is contested. This test may be considered as full, in the judgment of the judge.
2) They shall only be appealable, the sentence of remate, or the one that declares the impropriety of the
embargo or without place the execution, if any.
3) Transactional five days from the last notice of the cartel announcing the auction, the judge, at the request of a party, shall indicate the day and time for the sale of the seized goods, and shall send to the establishment of new posters, expressing in them the day and hour of the auction, the same as the value that you need to serve as a base.
Art. 55.-The executive judgment followed by credit to the production, will have the
following modifications:
1) Embargoed the garment will be delivered to the creditor.
2) If the executing judge will not find the garment or be (3) Return to the order of the cause.
3) Return to the order of seizure, if the garment has disappeared or is
damaged, the judge free certification of the conduct of the criminal judge, so that he will instruct the process to take place.
4) The test term will be reduced to four days.
5) will be applied to the trial, as required in the previous article number 3.
6) In the final judgment, if convicted, the judge will authorize the creditor to
sell the garment through two merchants in the square. The sale shall be made at the price of the listing on the market or the market, without taking into account the value in which the garment has been appreciated in the contract or subsequently. Traders who intervened in the sale must extend a certificate from the seller to the creditor. With the proceeds of the sale the debt and its accessories shall be paid, returning to the debtor or to the constituent of the garment, if any, the remnant if any.
Art. 56.-The creditor who wishes to make use of the rights conferred on him by the first
Article 1535 of the Code of Commerce shall ask the competent judge in writing, with the characters of a claim. the judge shall place the debtor and the constituent of the garment, if the debtor himself is not, giving them a three-day hearing common to both, to show whether or not they are being raided or opposed to the sale at auction of the pignorado object.
Yes nothing will manifest or any of them will oppose, will follow the proceedings of the executive judgment, with the modifications established in this law. If it is cleared, the judgment shall be delivered immediately, in which the auction and the payment of the debt and its accessories shall be ordered with the proceeds of the sale, giving the debtor or the constituent of the garment, if any, the remainder if the has.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
16
If the case referred to in the second subparagraph of Article 1535 of the Code of
Trade is dealt with, the judge, at the request of the creditor, may order, if appropriate, the immediate auction of the pignorado object, or the sale of the same by two merchants of the square. In the latter case, the sale shall be made at the current price of the day, without taking into account the value in which the contract is valued or subsequently.
The auction or sale referred to in the preceding paragraph shall be notified. the debtor and the constituent of the garment, giving them a hearing of three days common to both, in order for them to decide on the award of the amount obtained. If nothing manifest, or are opposed to the amount being awarded to the creditor, the proceedings of the executive judgment shall be followed, with the modifications laid down in this law. If they are raided, the judgment will immediately be delivered by ordering the payment of the debt in the terms indicated in the final part of the second paragraph of this article.
Art. 57.-In executive judgments in commercial matters, exceptions of any kind shall be alleged in the answer to the claim.
If the defendant, within the relevant legal term, does not answer it, or shall confess his
if exceptions, the trial will open, and the defendant will be able to invoke new exceptions and test them within the probative term.
Art.58. Contracts for the sale of movable property in instalments shall be subject to the provisions of Chapter II Title III of the Fourth Book of the Commercial Code, with the following formalities:
1) The applications of the creditor or his successors in title to which Articles 1042 and 1043 of the Code of Commerce and those of the debtor referred to in the Art. 1044 of the same Code must be filed with the characters of a claim.
2) If the contract, the subsequent agreement concluded by the parties or the expert adjustment impose
to any of them more onerous conditions than the Article 1026 of the Code of Commerce, the injured party may sue in summary judgment the nullity of the respective clause. The judge must automatically promote the summary judgment of nullity of the aforementioned clause by having knowledge of it by any circumstance.
3) When in accordance with Arts 1046 and 1047 of the Code of Commerce, it is claimed
The previous endorsements of all or part of the due will be carried out through the proceedings of the executive judgment with the modifications established in this law.
CHAPTER IX SUMMARY TRIAL
Art. 59.-Any mercantile action which has no other formality as indicated in this law, shall be deducted in
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
17
summary judgment, which shall be processed in accordance with the provisions of the Civil Procedure Code, Arts 975, 976 and 977.
Art. 60.-The security of the actor to answer for the costs, damages, will be requested, will be processed and approved in accordance with the Arts. 18 and 19 of the Code of Civil Procedures, but will be reduced to four working days proof referred to in the third subparagraph of Article 19 (19).
Art. 61.-The security shall be admissible which meets the requirements laid down in Art. 19 of the Code of Civil Procedures, and which is rendered by a Credit Institution or Insurance Company or Legally Authorized Securities to lend these guarantees.
They shall be exempt from the obligation to provide bail, in addition to the persons expressed in Art. 18 of the Code of Civil Procedures, the Credit Institutions, Auxiliary Organizations, Insurance Companies, and Failing Companies.
You will be cleared of bail to the persons referred to in the final part of the first subparagraph of the Art. 19 of the Code of Civil Procedures, and to those who check to be owners of titles of the Salvadoran nominative values sufficient to cover the amount demanded to strengthen.
Art. 62. The commercial actions promoted in the executive judgment, which have been declared without place, may, at the request of a party, be dealt with by the summary route.
Art. 63.-The definitive and interlocutory judgments with the force of definitive or that put an end to the judgment making it impossible to continue, pronounced in the mercantile summary trials, will be used in the same cases in which the judgments of the same class pronounced in ordinary civil trials.
The proceedings in the second instance and in the extraordinary resources shall be the same as have been established in the Third Book of the Code of Procedure Civilians and in the Law of Cassation, if any.
It will be appealable in the return effect, the resolution to channel the results of the trial.
Art. 64.-The actions referred to in Arts 248, 250, 397, 488, 492, 495, 598, 649, 1019, 1096, 1097 and 1259 of the Code of Commerce shall be deducted subject to the provisions of this Chapter, except in the case of special circumstances, have executive documents that credit it.
Also deducted in the same way, except for the legal exceptions, the shares arising from the contract of transport, of the current account, those that compete with the insurer or the insured to terminate the insurance contract, amend its clauses or establish its right to require a increase or decrease of capabilities or a return of part of them.
Art. 65. The judgment on the claim and settlement of damages shall be dealt with in summary form, in accordance with the following rules:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
18
1) If the claim is based on a previous judgment that condemns the payment of damages,
the respective execution shall be filed, and shall be carried out in accordance with the provisions of Article 960 of the Code of Civil Proceedings.
2) If the claim relates to the obligation to pay damages and damages, the
document on which the obligation is based, if any, and an affidavit that specifies and considers them: and the existence and the amount of damages for any legal means of proof shall be proved. In the same judgment should be settled those.
3) The resolutions that are delivered in accordance with this article will be appable
only in the return effect.
Art. 66.-In the case of Art. 202 of the Code of Commerce, if the application of the subscription is required, the action shall be deducted in the executive judgment; and in respect of the claim for damages, the claim shall be substantiated and shall be determined in accordance with the to the provisions of the previous article.
Art. 67.-The resolution of the contract of execution continues as to the following, as referred to in Art. 994 of the Code of Commerce, will be dealt with in summary judgment.
The judge will be transferred for three days to the defendant; if this answer The judge shall order the decision without further processing; if he proposes a fair and proportional modification of the terms of the contract, the judge shall transfer the case to the plaintiff. If the plaintiff agrees, the judge will decree the modifications.
If there is no agreement between the parties, because both will reject the proposal from the contrary, or because any one of them will not answer the corresponding transfer, the judge The trial will open the trial for the term of law, which will give judgment. CHAPTER X SPECIAL PROCEDURES
Art. 68.-In the case of Art. 13 of the Commercial Code, the Public Ministry or any interested person shall submit to the judge their application with the persons in which the case is based. The judge shall give a hearing for three days to the person to whom the trade is rendered unskilled, and if the person does not answer it, or in so doing, I shall argue that there is no such inability, the proceedings shall be opened for four working days.
Expired the probative term, if any, the judge will decide the sentence that corresponds; and if in it I will order the clause of the respective company, it will also order its disposal in public auction or its judicial liquidation, as it considers relevant.
Art. 69.-In the cases of the Arts. from 565 to 568 of the Code of Commerce, creditors who wish to make use of the rights conferred on them by such provisions shall, in accordance with Art. 979 of the Code of Procedure, be summarily justified. Civilians, the facts they serve as
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
19
grounds for such rights.
To the claims in which they claim payment of their claims, the certification of the respective judgment will be added, in order to substantiate the anticipated maturity of the same.
It will also be carried out summarily in the cases referred to by the Arts. 98, 152, 377, 643 and 1082 of the Commercial Code.
Art. 70.-In order to comply with an obligation, it is valid to exercise the resolution action as a change of action, in accordance with Art. 992 of the Commercial Code. To do so, the actor must present a new lawsuit, which will be added to the trial and will be notified to the contrary, giving the appropriate time to answer it.
The new application can only be submitted before the opening to the test in " First instance, without pushing back the judgment.
The new lawsuit, or the defendant's declared rebel, will have to be abandoned, the enforcement action will have to be abandoned, the resolution will have to be filed and the trial will continue.
Art. 71.-The actions conferred in the Code of Commerce, the trustee, the Public Ministry or the fiduciary, in relation to the existence and administration of a trust, will be deducted from the summary judgment, with the exception of the following:
1) Those that may be claimed in the executive judgment.
2) Those that have as their object the trust to render the accounts of their management, which shall be deducted in accordance with the requirements of Chapter IX of Title II, Book Second of the Code of Civil Procedures, as applicable.
3) Appointment of New fiduciary, will be done by the judge with the sole proof of removal
or exoneration of the previous trustee, after a three-day hearing of the Superintendence of Banks and other Financial Institutions.
Art. 72.-To make cash the right entered in the final letter of Art. 1272 of the Code of
Trade, the legal representative of the institution that handles a service of safety boxes, will be presented to the judge of the place where the box that has been opened, requesting that objects be sold in public for the extracted from the box, in sufficient quantity to cover the responsibilities of the user, if he has not found cash in sufficient quantity.
The request will indicate the amount of the responsibilities and the name and address of the user, heirs or the curator of the lying estate. The respective contract and the notarial act in which the relationship of the objects extracted from the box, a detailed estimate of the same and the user's statement of account are included.
The Judge will send the user to hear for three days, his heirs or the heirloom's curator, as the case may be, and with what they answer or in their default, order or not the requested auction,
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
20
as appropriate. If upon evacuation of the hearing the obligation to be claimed will be denied, the question will be decided in summary judgment.
Art. 73.-No insurance undertaking shall pay the compensation for an insurance policy against fire, if it is not specifically authorized for the case, by the competent judge of the place where the accident occurred.
Violation shall be punishable by a fine equivalent to five percent of the value of the unlawfully made payment, which shall be imposed by the competent judge in a governmental manner.
Art. 74.-The authorization referred to in the foregoing article shall be extended upon summary investigation of the claim, which the judge shall immediately follow who is aware of the fact.
Any interested party may request the investigation. or the judge must instruct him or her of his own motion, ordering the necessary steps to be taken and to receive any evidence requested, provided that it is conducive to the clarification of the facts.
In the investigation to which he refers This Article shall not be allowed by the Judge to omit the statements of the insured and of the insurance, if they are different persons; of the representative of the insurance undertaking, of the police authorities of the place where the event occurred; of the immediate neighbours of the place where the accident occurred and of the persons who appear as Event witnesses.
Art. 75.-If the result of the investigation appears that the insured person has no responsibility for the facts, the authorization shall be given and shall be communicated to the insurance undertaking, in order to pay the appropriate compensation.
If it is found that there was a commission of crime, the judge will certify the relevant passages and transmit the certification to the judge of the respective criminal law to instruct the process of law. If the insured person appears to have criminal responsibility in the event, the judge will free the insurance company from its trade, ordering it to refrain from paying the corresponding compensation.
The proceedings referred to in this article and the The fire must be completed within thirty days of the fire.
Art. 76.-When the delivery of the garment to the creditor is requested in the cases of Art. 1157 of the Code of Commerce, the debtor shall be heard within forty-eight hours; with what he answers or in his default, immediate inspection shall be carried out if necessary; the evidence presented by the parties shall be received by the act of the inspection. Upon completion of the inspection, the delivery of the garment to the creditor shall be ordered, as appropriate. CHAPTER XI UNIVERSAL JUDGMENTS BANKRUPTCY SECTION
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
21
Art. 77. The universal bankruptcy judgment shall be dealt with subject to the provisions of Titles IV and V of the Second Book, Part One of the Code of Civil Procedures, with the modifications contained in this Chapter.
Art. 78.-When it is the creditors or the Public Ministry who request the declaration of bankruptcy, they must verify that the debtor is in any of the cases listed in Art. 498 of the Commercial Code.
Art. 79.-For the purposes of the foregoing Article, the judge shall declare bankruptcy if the application is accompanied by evidence to justify the cause or causes on which the application is based.
If such evidence is not accompanied, the judge shall before making any such evidence. the declaration of bankruptcy, shall grant a term of five days to those who have requested it to justify the cause or causes which they have invoked.
Declared the bankruptcy, if the debtor intends to invalidate the causes that motivate it, proceed in summary judgment as prescribed in Arts 668 and 775 of the Code of Procedure Civilians, as the case may be.
Art. 80.-The deposit of the debtor's assets, which constitute the mass of the bankruptcy, shall be as follows:
1) Money, securities and documents of all kinds and jewels, in a credit institution.
2) Other assets furniture, in a general warehouse warehouse or in a responsible person.
3) The properties, in person responsible, under whose administration they will remain.
Art. 81.-Fortuitous bankruptcy is understood, that of the trader to whom they survive, which must be considered casual in the regular and prudent order of a good commercial administration, reduce the capital to the extreme of being unable to satisfy in all or partly its debts.
Art. 82.-The traders who are in any of the following cases shall be deemed to be guilty of bankruptcy:
11) If the domestic and personal expenses of the bankrupt have been excessive and disproportionate in relation to their having liquid, attended to the circumstances of their rank and family.
21) If the bankruptcy is caused by game-driven losses, bets or
reckless speculation.
31) If you have done manoeuvres in order to avoid or to postpone bankruptcy and have aggravated its effects.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
22
41) If in the six months preceding the declaration of bankruptcy it has sold at a loss, or for less price of the current in square, effects purchased from the fiado and that it is still owing.
51) Yes will note that in the period from the last inventory to the declaration
of the bankruptcy, there was time when the bankrupt owed, by direct obligations, double the amount of liquid that was found in the inventory.
Art. 83.-They shall also be held guilty, unless proof to the contrary shown by the
guilty of bankruptcy:
11) Those who have not taken the accounting records in the form and with all the essential requirements that are prescribed in Title II Book II of the Code of Commerce, and those which still bear them in all these circumstances, have incurred them in the absence of injury to the third party.
21) Those who have not made their bankruptcy in the term and form that is
prescribed in the Civil Procedure Code.
31) Having been absent at the time of the declaration of bankruptcy or during the course of the trial, they shall cease to appear personally in cases where the law imposes this obligation, not by legitimate impediment.
Art. 84.-The fraudulent bankruptcy of the merchants in whom one of
the following circumstances:
10) Be rejected with all or part of their assets.
20) Include in the balance sheet, memoirs, books or other documents relating to their rotation or negotiations, assets, claims, debts, losses or assumed expenses.
30) Not having carried accounting records, or taking them. include in the records with damage of
third, non-settled items in the place and time.
40) Rasgar, delete or otherwise alter the contents of the accounting records, to the detriment of third parties.
50) result from their accounting the exit or existence of the asset from their last inventory, and
of the money, securities, furniture and effects of any species that they are, which shall be recorded or justified having subsequently entered into the power of the bankrupt.
60) Hide any amount of money, credits, genera or
another kind of property or rights.
70) Haber consumed and applied for his own business, funds or other affections that are entrusted to him in deposit, administration or commission.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
23
80) Negotiate without authorization from the owner, securitissecurities that hold in their power for their
collection, remission or other use other than that of the negotiation, if they have not done to that consignment of their product.
90) If you are a commissioner for the sale of some genres or to negotiate credits or
trade values, have hidden the operation from the owner for any time space.
100) Simulate enajenations, of any class that are force.
110) Grant or take advantage of documents that contain alleged obligations, to their
charge or to their advantage.
120) To purchase real estate, effects or credits, on behalf of third parties, to the detriment of their creditors.
130) To have anticipated payments to the detriment of their creditors.
140) Negotiate, after the last balance sheet, letters of his own turn in person at
whose power has no funds or open credit on it, or authorization to do so.
150) If the declaration of bankruptcy has been made, it has been perceived and applied to its personal uses, money, effects or credits of the mass, or distracted from it some of your belongings.
Art. 85.-The bankruptcy of the trader whose true situation cannot be deducted from his
accounting records, is presumed to be fraudulent, unless proof to the contrary.
Art. 86.-The bankruptcy of the agents of commerce shall be deemed fraudulent when it is justified that they did on their own behalf, in their own name or outside, some operation of traffic or turn, even if the reason for the bankruptcy does not come from these facts.
Yes If the agent has been established as a guarantor of the transactions in which he intervened, the fraudulent bankruptcy shall be presumed, unless proof to the contrary.
Art. 87.-They will be considered accomplices of the fraudulent bankruptcies:
11) Those who assist the bankrupt to be elated with their assets.
21) Those who have colluded with the bankrupt to assume credits against him, or to increase the value of those who actually have against their securities or assets, hold this assumption at the time of examination and qualification of the credits, or in any meeting of creditors of the bankruptcy.
31) Those who to put themselves before the graduation to the detriment of other creditors, and of
agreement with the bankrupt, alter the nature or date of the credit, even if this is
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
24
verify before the bankruptcy filing is made.
41) Those who deliberately, and after the break has ceased payments, will help you to hide or subtract some of your assets or credits.
51) Those who are holders of some membership of the bankrupt, at the time of
bbe made aware of the declaration of bankruptcy by the judge or tribunal which it is aware of, and shall deliver it to the court or tribunal, and not to the legitimate administrators of the mass, unless, residing in a foreign country, they prove that at the place of their residence was not reported to be bankrupt.
61) Those who deny bankruptcy administrators, the effects that exist in their
power and that are of the membership of the bankrupt.
71) Those who after the publication of the (a) a declaration of bankruptcy, an endorsement of the bankruptcy.
81) Legitimate creditors who, to the detriment and fraud of the mass, they do
with the broken private and secret conventions.
91) The meter agents that intervene in the operation of traffic or spin that will make the trader declared bankrupt.
Art. 88.-Provided that, in accordance with the provisions of the Code of Commerce, the "liquid-ship" of the
bankruptcy " has to assume obligations resulting from a contract concluded by the bankrupt, prior to the declaration of bankruptcy and that they are outside the powers conferred on it by the law, or decide whether or not to accept a benefit, in return for which a payment or a right or a right has to be made; or a statement involving commitments or obligations for the mass of the bankruptcy, will proceed as follows:
a) The receiver will ask the judge to convene the board of creditors, with the necessary urgency, to know and decide on the matter. The Board shall meet under the chairmanship of the Judge and shall deliberate exclusively on the object for which it has been convened, and shall resolve by vote, calculated in accordance with the value of the appropriations that each participant represents.
b) Any A creditor who has voted against the board agreement, or has not attended
, may object to the agreement being made. In the first case, within three days from the date of the conclusion of the meeting; in the second case, from the day following the day on which the agreement has been notified to the judge by order of the judge.
c) The opposition (a) shall be written in writing to the judge who is aware of the universal judgment.
The court shall admit the statement of opposition and shall indicate a term of five common days for the opposition and the other creditors to expose their views to the in respect. After this period, the creditors will answer or not, the judge will rule it
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
25
that you consider appropriate.
d) When the interest discussed is one-tenth or more of the mass of the bankruptcy, the judicial resolution, as referred to in the preceding literal, will be appable in accordance with the rules
Art. 89.-The Judge, in the judgment referred to in Art. 721 of the Code of Civil Procedures,
will set the date to which the effects of the bankruptcy must be rolled back, in accordance with the following rules:
a) The judge shall take in the opinion of the trustee and those who have been supported by the creditors on the board referred to in Article 719 of the Code of Civil Procedures and
b) The date of the bankruptcy of the bankruptcy shall be fixed on the basis of the the
accounting of the broken and the claims filed against it, if any.
A notice that indicate the date of the retroaction of the bankruptcy established in the judgment, shall be published in the manner in which Art. 486 of the Code of Commerce is available.
Art. 90.-The sentence of bankruptcy pronounced abroad, will be executed in El Salvador subject to the provisions of Arts 451 and 453 of the Code of Civil Procedures; and in the absence of treaties, if the circumstances of Art. 452 of the In addition, there is no judgment given by the national courts to produce the effects of res judicata in respect of the issue settled in the foreign judgment, or pending judgment on the same issue, the judgment of which to produce those effects.
Granted the permission of the Supreme Court of Justice for the execution of the judgment, the person concerned shall be present with the relevant executor, before the competent judge, who shall decree the seizure of the goods of the bankrupt, order that the executor be registered in the Register of Commerce, and send a publication of a notice in the manner prescribed in Art. 486 of the Code of Commerce, in which it will make an appeal to the creditors of the bankrupt domiciled in the Republic to the effect that within thirty days after the last publication of the notice they occur with their titles to the court to enforce their rights.
After the deadline referred to the foregoing paragraph without any creditor having been lodged, the judgment shall be executed in accordance with the provisions of Article 450 of the Code of Civil Procedure but shall, if they occur, appoint a representative who shall act jointly with the receiver appointed in the bankruptcy trial, and both will carry out the graduation of the credits not discussed in that trial. If the judge approves it, the payment of the claims shall be made in accordance with Chapter VI of Title IV of the Second Book of the Code of Civil Procedure, as applicable.
If the representative of the creditors and the If you do not agree on the graduation of the undiscussed credits, this will be done by the judge.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
26
In any case, compliance with the provisions of the second paragraph of Art. 511 of the Trade Code shall be complied with.
Art. 91.-In no case, neither at the request of a party nor on its own initiative, shall the crimes of guilty or fraudulent bankruptcy be carried out without the competent judge having made the declaration of bankruptcy and the qualification of the same as of merit.
Art. 92.-Declared the bankruptcy and qualified this guilty or fraudulent, the competent judge will certify the relevant passages of the trial and will transmit the certification to the Attorney General of the Republic, for the consequent effects.
The Prosecutor General of the Republic before initiating the criminal action which it has to promote, it may examine, in itself or through its auxiliary agents specially authorized for this purpose, the accounting records, documents and other papers of the bankrupt, for the purposes of which the competent judge will give you the necessary facilities.
Art. 93.-The criminal liability will be deducted before the relevant branch judge and the respective trial will be conducted with the intervention of the Prosecutor General's Office, the liquidator and the bankrupt.
The creditors will have the right to show In the judgment; but they will do so at their expense, without the right to be compensated, by the mass, of the expenses of the trial whatever the result of their efforts.
Art. 94.-The classification of fortuitous bankruptcy by enforceable judgment shall not be an obstacle to the criminal proceedings, where the pending judgments on the convention, the recognition of claims or any other incident result in evidence of facts declared punishable in the Criminal Code, which shall be subject to the knowledge of the competent court or tribunal. In these cases, the Attorney General of the Republic must be heard beforehand.
Art. 95.-Without prejudice to the provisions of the Commercial Code and in this law, the judicial declaration of bankruptcy of the Banks and Financial Institutions shall be regulated in accordance with the provisions of the Arts. 40-A and following of the Organic Law of the Bank Central Reserve of El Salvador.
Art. 96.-The certification of the judgment declaring the bankruptcy of a trader and of the point of the act in which the receiver was chosen shall be entered in the corresponding sections of the Trade Register.
The certification of the Judgment declaring bankruptcy shall be published in accordance with Art. 486 of the Code of Commerce.
Art. 97.-If the unsuccessful application is to be rehabilitated, it shall be carried out in accordance with the provisions of Articles 761 et seq. of the Code of Civil Procedure, with the amendments established by Arts 544 and 545 of the Code of Commerce. Section Second
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
27
SUSPENSION OF PAYMENTS
Art. 98.-The trader who, pursuant to Article 546 of the Code of Commerce, requests before the competent judge to be declared in a state of suspension of payments, must accompany his application to the cases referred to in ordinal 11) and 21) of Art. 660 of the Code In addition, the draft convention which it intends to conclude with its creditors, formulated with clarity and precision, and so many copies of the same and of the demand how many recognized creditors are.
Art. 99.-The right to benefit from the suspension of payments may be exercised only by the trader within five days of the date on which he has ceased to pay his obligations, if the bankruptcy judgment is not has started; or before it is declared bankrupt, otherwise.
Art. 100.-If the trader does not accompany his application with the documentation referred to in Art. 98, the judge shall declare him in a state of bankruptcy.
Art. 101.-Companies must present the claim by means of those who represent them. If it is a company of persons, and no prior consent of the partners has been obtained, it must be obtained within three days of the filing of the application.
Art. 102.-The application for suspension of payments suspends the processing of those which have been filed for bankruptcy. But this effect does not occur but from the moment the documentation that must accompany the application is presented; or the constancy that the partners have submitted their consent, if any.
Art. 103.-The judge shall, within five days of filing the application or having submitted the evidence that the partners have given their consent, shall, where appropriate, give judgment by declaring or refusing the status of suspension of payments, as appropriate. If I agree, in the same resolution I shall appoint the liquidators of the suspension, giving him the power to carry out his own operations, and he will send the creditors, who will be given a copy of the suit and the draft agreement. If the denial will be declared bankrupt.
The resolution that denies the declaration of the state of suspension of payments and declares the state of bankruptcy, will not admit any recourse.
Art. 104.-The resolution ordering the suspension of payments shall be published in the manner prescribed by Art. 486 of the Code of Commerce, in order to enable creditors who have not been appointed to intervene.
Art. 105. Within ten days of their respective placement, any creditor may challenge the declaration of suspension of payments.
The challenge shall be filed in writing and shall be based exclusively on any one of the creditors. of the following reasons:
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
28
a) That the applicant is in any of the cases referred to in Art. 547 of the Trade Code; and
b) That the application and the documentation presented to the effect do not fill the requirements legal.
Art. 106.-The request for impeachment shall be sent to the debtor for three days; and with his
reply or without it, the incident shall be received for four days, which shall be defeated which shall be delivered without further processing.
The judgment shall be founded, the judge shall revoke the declaration of suspension of payments and in the same shall declare the state of bankruptcy.
If in the judgment in which the challenge is declared inadmissible, appeal shall be admissible in both effects.
Art. 107.-Translate the terms referred to in Art. 105, or ten after the last publication of the application in the Official Journal if this period is later expired, without the declaration of suspension of payments being contested; or The judge shall declare to the creditors a board of directors for the examination of the agreement, recognition and graduation of the credits and qualification of the suspension.
Art. 108.-As regards the holding of the meeting, creditors with the right to abstain, the counting of votes and the majority necessary to accept the proposal of the Convention, will be in accordance with the provisions of Arts 735 to 760 of the Code of Civil Procedures, on whatever applicable.
Art. 109. The draft Convention shall be discussed by the creditors and the debtor at the general meeting convened by the judge for that purpose. Such a project may be modified at the will of the parties, and may be agreed upon by a party or by a combination, but not on the transfer of the goods.
If an agreement is reached on the agreement, the creditors may appoint an auditor to monitor the actions of the suspense and the liquidator.
If the agreement is rejected or an agreement is not reached, the judge shall declare the debtor in a state of bankruptcy.
Art. 110.-During the proceedings proceedings are suspended against the debtor whose purpose is to claim the fulfilment of the obligations of the property; but the proceedings shall be carried out to prevent damage to the legal proceedings or the preservation of the rights of the parties. Claims of a labor, food and security with a garment or mortgage are excepted.
In the same period no credit previously contracted may be required for the suspense or the latter may pay for it; but they may Protect them from coming.
The suspension declaration interrupts the prescription.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
29
Art. 111.-The declared suspense shall maintain the administration of the goods and continue the
ordinary operations of the company under the supervision of the liquidator and the financial controller if any, which does not involve active participation in the management of the business.
Art. 112.-The suspense retains the free disposition and the corresponding powers, on the goods covered by Art. 507 of the Code of Commerce.
Art. 113.-If during the procedure of suspension of payments, or after the approval of the agreement, the debtor does not comply with the agreement in this or to execute any act prohibited by the law to the detriment of its creditors, especially those contemplated in the Article 551 of the Commercial Code, any of the persons entitled to apply for the declaration of bankruptcy may sue it, or request that the bankruptcy judgment be continued if it has already been initiated.
The circumstances referred to in the preceding paragraph, shall be checked in summary form; and if it is credited, the judge shall The state of suspension of payments is concluded and will declare the state of bankruptcy.
Art. 114.-The agreement shall be approved by the judge if the following circumstances are present:
I) If it has been agreed with the legal requirements;
II) If the amount offered by the debtor is not less than its possibilities economic;
III) If the convention execution is sufficiently guaranteed.
Art. 115.-the approved convention will be protocolized and the respective testimony will be entered in the Register of Commerce.
The notary will be appointed by the parties; and if they do not reach agreement within the time limit that will be determined by the judge, this will make the designation.
Art. 116.-The liquidator and the financial controller shall, if any, continue in their duties for the duration of the implementation of the agreement, in order to ensure compliance with all the provisions of the Convention and shall immediately inform the judge of the irregularities which notaren.
Art. 117.-The judge responsible for dealing with the suspension of payments is the one who is aware or should know in the bankruptcy trial.
Art. 118.-They are the powers of the judge:
1) Those who tend to comply with the suspension sentence;
2) Convert the suspension of bankruptcy payments, in the cases determined by law;
3) Authorize acts that exceed the ordinary business administration;
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
30
4) Resolve the differences that arise between the suspense and the receiver with the occasion of the veto
that this interpusere;
5) Chair the creditors ' boards, direct the discussions and exercise the others the powers the law grants to it for cases of credit recognition and acceptance of the agreement;
6) All which confers the law on bankruptcy, except the following:
a) Authorizing the occupation of goods;
b) Ensuring the preservation of goods; and
c) Other acts relating to the Regular administration of the company.
Art. 119.-The receiver has the following privileges:
1) Practice the inventory and verify the accuracy of the statements relating to the asset and
liabilities, as well as the relationship of creditors and debtors that the suspense has presented.
2) Immediately communicate to the judge any irregularities that I will notice in the affairs of the debtor.
3) Watch the accounts, for which the suspense will make available the records
accounting and documents of all kinds relating to the business.
4) Learn in detail for each of the operations
5) Vetar the performance of any act that damages the creditors. If the suspense does not
agree, with the veto it will be denounced by the judge, who will resolve without any formalities.
Disobedience of the suspense will entitle the creditors, the liquidator or the Public Ministry,
to request the If the bankruptcy proceedings have already been initiated, their processing will be continued. Disobedience will be checked in summary form. CHAPTER XII GENERAL PROVISIONS
Art. 120.-In all that is not expressly provided for in this law and in the Code of Commerce, the rules laid down in the Code of Civil Procedures and the Law of Cassation shall apply; but in summary judgments in commercial matters the restriction laid down in the second paragraph of Art. 5 of the Law of late mentioned, and consequently, the action shall also be taken for infringement of law or of legal doctrine.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
31
By way of derogation from the foregoing paragraph in commercial matters, the appeal of
shall not take place against the judgments delivered in the judgments in which a quantity not exceeding five thousand colons, or an action of indeterminate value relating to a good or obligation, the value is equal to or less than that sum.
Art. 121.-The provisions of this law shall be without prejudice to those contained in laws
which shall establish separate procedures for the exercise of the respective actions.
Art. 122.-The judgment given in executive judgment does not produce the effects of res judicata, and it leaves the right of the parties to dispute in summary judgment the mercantile obligation that caused the execution.
Except the case in which the execution merges into the values in which the statement will produce the effects of res judicata.
Art. 123.-The causal actions under Article 648 of the Commercial Code shall be deducted in the appropriate judgment, according to the nature of the legal relationship that has given them origin and the class of instrument in which they are established.
Art. 124.-If the period within which an act must be enforced in accordance with the Code of Commerce ends on a legal holiday, the act may be carried out on the following working day.
Art. 125. This law is part of the Code of Civil Procedures, and will be incorporated in the Code as a new edition of the Code as TITLE V of the Third Party, Part II, under the name "COMMERCIAL PROCEDURES".
Art. 126.-(TRANSIENT)-The commercial processes that are pending at the time of this law will continue to be processed in accordance with the rules of the Code of Civil Procedures and the special laws, according to the case.
Art. 127.-This Decree will enter into force, on the first of January, thousand nine hundred and seventy-four.
GIVEN IN THE SESSION OF THE LEGISLATIVE ASSEMBLY; NATIONAL PALACE: San Salvador, at the fourteen days of the month of June of a thousand nine hundred and seventy-three. RUBEN ALFONSO RODRIGUEZ, PRESIDENT. JULIO FRANCISCO FLORES MENENDEZ, ALFREDO MORALES RODRIGUEZ,
VICE PRESIDENT. VICE PRESIDENT.
JORGE ESCOBAR SANTAMARIA, FIRST SECRETARY.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
32
RAFAEL RODRÍGUEZ GONZÁLEZ, JOSÉ FRANCISCO GUERRERO, FIRST SECRETARY. FIRST SECRETARY.
CARLOS ENRIQUE PALOMO, SECOND SECRETARY. LUIS NEFTALI CARDOZA LÓPEZ, PABLO MATEU LLOT,
SECOND SECRETARY. SECOND SECRETARY.
CASA PRESIDENTIAL: San Salvador, at the twenty-one day of the month of June of a thousand nine hundred and seventy-three. PUBESCOSE. ARTURO ARMANDO MOLINA, President of the Republic. José Enrique Silva, Minister of Justice. PUBLISH IN THE OFFICIAL JOURNAL, Enrique Mayorga Rivas, Minister of the Presidency of the Republic. D.O. Nº 120 Took Nº 239 Date: June 29, 1973. PARTIALLY REPEALED BY: D.L. NO 914, JULY 11, 2002; D.O. No. 153, T. 356, August 21, 2002. D.L. Nº 641, 12 JUNE 2008 D.O. No. 120, T. 379, JUNE 27, 2008.
LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR ____________________________________________________________________
___________________________________________________________________ INDEX LEGISLATIVE
33
NOTE:
By Art. 125.-This law is part of the Code of Civil Procedures, and will be incorporated into this Code when a new edition of the Code is made as Title V of the Third Book, Part II, under the name of "COMMERCIAL PROCEDURES". REPEALED BY: D.L. No. 712, SEPTEMBER 18, 2008; EXCEPT CHAPTER XI (Arts. 77 to 119). D.O. No. 224, T. 381, NOVEMBER 27, 2008. EXTENSION OF VALIDITY: D.L. NO 220, DECEMBER 11, 2009; D.O. NO. 241, T. 385, DECEMBER 23, 2009. EXTEND EFFECTIVE TO CHAPTER XI (Arts. 77 to 119) ONLY UNTIL THE ISSUANCE OF A SPECIAL LAW. D.L. No. 377, JUNE 3, 2010, D.O. No. 116, T. 387, JUNE 22, 2010. JCH/ 24/07/2008
CC/ngc 20 02/09 SV/ngc 04/02/2010 JCH 30/06/2010 ROM 12/07/2010
