Advanced Search

Savings And Credit Cooperatives. Regime.

Original Language Title: Cooperativas Ahorro Y Credito. Regimen.-

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
Legislative Power/ Eastern Republic of Uruguay

Law No. 13,988



The Senate and the House of Representatives of the Eastern Republic of Uruguay, meeting in General Assembly,


Article 1 °.
The savings and credit cooperatives shall be governed by the provisions of this law and by law no. 10.761, of 15 August 1946, not governed by this type of The prohibition laid down in Article 11 of the decree of 5 March 1948.
In the relevant these cooperatives will be subject to the rules dictated by the Central Bank of Uruguay, in the framework of the provisions in force.

Article 2 °.
They shall be considered to be savings and credit cooperatives formed by natural persons or non-profit legal persons, related to each other by a duly accredited common bond (either territorial, occupational or any other species) and which aim to promote the permanent and systematic saving of their partners and provide them with credits and other services, in order to obtain greater economic and social training for them. These cooperatives will be able to operate only with their partners.

To be able to found a cooperative of this type will need 20 (twenty) people at least. The two years of its foundation will have to count, in order to continue to operate, at least, with 100 (one hundred) partners.

Article 3 °.
You must compulsorily include in the statutes the following principles:

A) The General Assembly or the Board of Directors shall appoint a Credit Committee of at least three persons, in charge of the approval of the loans, in accordance with the Regulations of Loans approved by the Assembly or the Board of Directors, as provided by the statutes;

B) The surplus distribution will be subject to the following rules:

1. 20% (twenty percent) will be allocated to the
formation of a reserve fund for bad loans;

2 °10% (ten percent) for a cooperative education fund;

3 The rest will be paid interest to the social parties up to the maximum of the current interest in the square;

4 °The remainder will be distributed among the partners who have withdrawn credits from the company and in proportion to the interest paid in the year.

C) No partner may have (in social parts or savings) more than 10% (ten percent) of the cooperative's total social parts and savings;

D) No member of the Credit Committee, the Board of Directors or the Fiscal Commission, may obtain credit in excess of the amount of its social parts and savings, unless its application is approved by a number not less than 2/3 of the other members of the three bodies, meeting in special session called for this purpose;

E) They must deposit in accounts with the Bank of the Eastern Republic of Uruguay themselves, or of the second-grade agencies when they are created, the cash collected, either by social parties, savings or amortization of credits;

F) No partner may receive credits of more than 50% (five percent) of the total amount of social parts and savings of your cooperative, unless your application is approved by the mechanism provided in the literal D) of this article. But in no case can it exceed 10% (ten percent) of the total amount of social parts and savings:

G) In order for their Assemblies to be validly sessioned, a quorum of 50% (fifty percent) of their enabled partners will be needed.

Article 4 °.
Cooperatives may constitute central, federations or confederations by the assent of two-thirds of the present General Assembly. The provisions of this law shall apply, as appropriate, to second-degree or third-degree bodies which are believed.

All cooperative must be compulsorily affiliated to a Federation. In order for your Balance Sheet to be approved by the Finance Inspectorate, you must necessarily count on an audit report by the Federation.

Article 5 °.
You are authorized to manage and obtain credits to finance the production of your partners, in domestic or foreign sources. Reference to these funds shall not govern the prohibition laid down in Article 3 (F) of this Law.

Article 6 °.
When the cooperatives are organized according to this law, the public or private institutions or companies shall be obliged to discount the salary of their officials, the deductions that the cooperatives communicate and deliver the money within the next five days. Deductions, whether for the contribution of social partners, savings to credit amortization, will not exceed 20% (twenty percent) of the nominal salary.

Article 7 °.
Commune, etc.

Chamber of Sessions of the House of Representatives, in Montevideo, on July 15, 1971.

                           JORGE L. VILA
                        G. MORATORIO COLLAZO

    Ministry of Economy and Finance.
      Ministry of Education and Culture.

Montevideo, July 19, 1971.

Comply, acknowledge receipt, please contact. post and insert into the National Register of Laws and Decrees.

                           PACHECO ARECO
                         CARLOS M. FLEITAS
                        PEDRO W. CERSOSIMO

línea del pie de página
Montevideo, April 1998. Legislative Power.