Read the untranslated law here: https://parlamento.gub.uy/documentosyleyes/leyes/ley/18716
Charter of the Bank of the Republic East of the URUGUAY amendment the Senate and the Chamber of representatives of the Republic East of the Uruguay, gathered in the General Assembly, Decree: chapter I nature legal, registered and representation article 1.-the Bank of the Republic East of the Uruguay, created by the law Nº 2,480, of 4 August 1896, is a service of the business domain of the State organized in the form of autonomous entity, it shall be governed by the provisions of section XI, XIII and XIV of the Constitution of the Republic and which by this Act are established, as well as by the laws that regulate banking. Article 2.-the Bank of the Republic East of the Uruguay is legal person capable of all the rights and obligations established by the present and other laws of the nation. Its legal domicile and main seat is the city of Montevideo, without prejudice to the branches with respect to its operations. When the Bank be sued will meet in the respective judgements the courts in the Department of Montevideo. The representation of the Bank and the directory will be entrusted to the President, assisted by the Secretary-General, and in the heritage field will be exercised jointly by the President and the General Manager, who may also jointly grant powers and grant through them, all faculties, even those for which the law requires authorization. The representation of the bank branches and agencies, shall be exercised by those who occupy the charges determined by the Board, who will sign, in that character, writings and public and private documents as relating to acts as a contract of any nature. When officials referred to in this subsection granted powers, they may also grant all faculties even those for which the law requires authorization. The representation of bank branches, agencies and representative offices based abroad will be granted by the Board of directors officers using powers that agree to them the powers necessary to exercise the respective charges in accordance with the legislation of each country. Chapter II Government and administration article 3.-the Government and the administration of the Bank will be run by a Board composed of a President and four directors appointed by the Executive Branch, in accordance with article 187 of the Constitution of the Republic. Article 4.-without prejudice to the incompatibilities referred to in article 200 of the Constitution may not be members of the Board: to) people who are not natural citizenship or do not have five years of legal citizenship.
(B) persons under twenty-five years.
(C) those who are part or depend on the direction, administration, representation or receivership of other banks or financial institutions, non-State, except when by its status as members of the Board of the Bank of the Republic of the Republic East of the Uruguay, members of those institutions.
(D) two or more persons who were directors or trustees or have a relationship of dependence or work under a contractual relationship of any kind with a commercial or civil society.
(E) the debtors of the Bank of the Republic East of the Uruguay, except those who were by ordinary operations of Social credit or credit cards, provided that they are not in a situation of mora.
(F) that were insolvent or persons who were directors or managers of companies in a situation of competition, provided that they had been found responsible for fraudulent or concealment of information.
(G) persons disabled by the Central Bank of Uruguay in the last ten years, have incurred in irregularities in the financial system.
(H) persons who have been convicted of crimes that might have connection with the civil service. Article 5.-the Board of Directors shall appoint, at its first meeting, after each periodic integration, a Vice-President who shall exercise the functions of the President in case of absence or impediment of this. Where the demands of good service so require, the President may delegate their powers to Vice President. Appoint a second Vice-President, who shall exercise the functions of Chairman in the absence or impediment of this and the Vice President. Article 6.-the Board of Directors has broad powers, franca and general administration. Article 7.-the Board of Directors shall establish the system of regular meetings without prejudice to the extraordinary that you can have the President or ask for two or more of the directors. Notwithstanding this in exceptional circumstances which in the opinion of the President an early decision is required, this may take them insofar as it is in cases in which law does not impose special majorities, Dante directory be considered at the next session. Article 8.-without prejudice to the provisions of article 24 of the Constitution of the Republic, the members of the Board are personal and jointly and severally responsible for the resolutions voted in opposition to the Constitution, laws or regulations. They are exempt from this responsibility: to) those present that had been recorded on record his dissent with the resolution adopted and the basis that motivated him.
(B) absent from the meeting at which the resolution was adopted that always make recorded on record his dissent at the first opportunity where possible. In both cases the Secretary-General, within twenty-four hours, shall be sent to the Executive Branch testimony of the corresponding Act. Article 9.-in cases of temporary acefalia referred to in the third subparagraph of article 192 of the Constitution of the Republic, the directory may be integrated, by appointment of the Executive Branch, with members of the directories of other autonomous entities or decentralized services, preferably of similar nature. The vote that this member emits implies the responsibility referred to in article 8 of this law. Chapter III CAPITAL, reserves and profits article 10.-the authorized capital of the Bank of the Eastern Republic of Uruguay will be IU 10,000,000,000 (ten billion indexed units), which will integrate: to) with the current integrated capital.
(B) with the capitalization of the balance of reserve accounts, with the exception of the prosecutors, at the close of the last financial year.
(C) with the capitalization of the balances of accounts of adjustments to the heritage resulting from the variation in the purchasing power of the currency, at the end of the last financial year.
(D) with 80% (eighty percent) of the amount remaining of the annual profits of the Bank, once covered the contributions referred to in the following article, with 20% (twenty per cent) remaining to the reserve fund.
Once integrated the total capital authorized by this article, all of the remaining profits will go to the reserve fund, which by decision of the directory, with the favorable vote of three of its members, and prior authorization from the Executive power, may be joining the capital.
(E) with the resources that are set by law. Article 11.-The Bank will contribute to general revenue in the amount that set Executive, up to 50% (fifty per cent) of their annual net profits after debit taxes. Contributions may be made only to general revenue when the net liability of the Bank by more than 30% (thirty per cent) exceeds the minimum level required by the regulations of the Central Bank of Uruguay. Chapter IV responsibilities and powers main article 12. (Committed).-the Bank will have as their main mission, to ensure that financial services are accessible to the population, stimulate the savings as a tool for personal development and promote the production of goods and services contributing to the country's economic and social growth. Article 13. (Main responsibility).-the Bank may perform all kinds of commercial or financial operations that constitute the usual banking transactions and that are not prohibited by the Constitution of the Republic and this Charter. Notwithstanding this and example, may especially: 1) receive all types of deposits in national currency, foreign, or unit of account or value, view, current account, term or in any other form.
(2) granting credits, loans, guarantees, or other forms of guarantee, and discounted securities values and other commercial documents and may require all sorts of real or personal guarantees in national or foreign currency.
(3) buy and sell all kinds of values of gold, silver and other metal pastes, titles and national Government securities or foreigners of any kind on their own.
(4) buy and sell by Commission, debt securities, shares in companies, bonds, mortgage securities and all kinds of securities and obligations of companies.
(5) to invest in publicly offered securities.
(6) perform change operations in square or abroad, and carry out all kinds of unusual banking transactions related to international trade operations, and may for this purpose put funds or securities in their branches or agencies based abroad and their correspondents.
(7) credits according to correspondents in character of reciprocity.
(8) rediscount or bailing, inside or outside the country, titles, documents or values you have in your wallet.
(9) other financial intermediation companies rediscount.
(10) financing of import and/or export operations.
(11) pay on certificates of deposit or "warrants".
(12) clothing within the provisions of the law No. 17.228, of 7 January 2000, concordant and modifying operations.
(13) operations ahead of cereals, fruit and wool, and can do so also on product yields and future harvests.
(14) operations use credit, factoring, with or without recourse, prefinanciamiento of issuance of securities, repurchase agreements, and financial derivatives.
(15) any character Trusts Act.
(16) carry out on behalf of the State all kinds of financial transactions and the corresponding authorization from the legislature, also on behalf of the State, operations commercial or industrial applications where public conveniences so require.
(17) endorse on credits in foreign currency for requirement, expansion or installation of industrial plants that produce for export or for the elaboration of items or goods replacement of foreign imports.
(18) acquiring shares or parts of capital from financial institutions outside the country, by resolution having the vote as three of the Board members and the consent of the Central Bank of Uruguay.
(19) acquire shares of joint-stock companies, establish or participate in them, as well as in companies of different nature, for the purpose of complying directly or through them, businesses that correspond to the financial or banking giro.
(20) constitute or integrate as shareholder companies administering investment funds in accordance with the scheme of the law No. 16.774 of September 27, 1996, and its amending; trust companies in accordance with the rule of the law No. 17.703 of 27 October 2003, as well as also investment banks.
(21) to issue debt securities, certificates of deposit, subordinated debt, as well as receive loans from other financial institutions or international organizations.
(22) in general, perform all operations enabled financial intermediation institutions.
(23) activities of corporate social responsibility directly or also through a foundation that you can create. Article 14.-(limits of loans to non-financial sector)-credits or loans granted by the Bank to a natural or legal person of the non-financial sector, are cumulative each other--in the proportions and even partial limits determined by the same bank-, but the total amount of credits or loans to one person, may not exceed the equivalent of 5% (five per cent) of the Capital and reserves of the Bank. When the total amount concerned exceeds the equivalent of 1% (one per cent) of the capital and reserves of the Bank, the respective concession will require as vote of three Directors. Article 15. (Credits or loans to industrial or commercial entities).-in the case of loans or credits to industrial or commercial entities referred to in article 221 of the Constitution of the Republic, the percentages referred to in the previous article, augmented by 100% (one hundred percent) shall be taken into account. Article 16. (Economic ensembles)-case of credits or loans to be granted to natural or legal persons from the non-financial sector, or industrial and commercial entities that integrate an economic unit, the thresholds set in the two preceding articles shall be taken into account, but the total amount of credits or loans to the economic unit, shall not exceed by more than 50% (fifty percent) these stops. The determination of the existence of an economic unit is set as a minimum to the rules of regulation and Control of the financial system, issued by the Central Bank of Uruguay, notwithstanding that the Bank's Board may adopt additional criteria for reasons of better management. If determined the existence of the same, is aware that the sum of all the credits and loans to its members, exceed the ceiling established in this subsection, the Bank's Board will have a period of three years from the finding, to suit financial assistance from all that butt. Article 17. (Credits or loans to the State).-the vote as three of the members of the Board and the approval of the legislature, it may grant credits or loans to the State, as well as also to the departmental governments, the limit in the case of the latter, to an amount not exceeding the twelfth of their respective budgets for salaries and expenses. You can also vote as three of the members of the Board, grant special credits departmental governments for amounts that do not exceed 20% (twenty per cent) of their contracted public works budgets and implemented and that do not exceed a half twelfth of their respective budgets for salaries and expenses. Article 18.-Declare the law Nº 9.678, of August 12, 1937, and articles 39 and 41 of the law Nº 13.608, of September 8, 1967, shall apply to all or any operation that carried or carry out in the future the Bank of the Eastern Republic of Uruguay. Article 19. (Credit operations, loans and investments in the financial sector).-the Bank may place or deposit funds or securities in internal or external financial sector institutions, investing in these financial instruments issued as well as specify credit operations in them, with the limits to the Bank's Board be established for these types of operations, according to the type of risk assumed the qualification of the contracting financial institution and the diversification of investments. In any case referred limits may exceed that set the Central Bank of Uruguay for these types of operations. Article 20. (Investments in internal and external sovereign debt).-the same regime established in the preceding article shall be subject to internal and external sovereign debt investments. Article 21. (Relatively incapable people saving operations).-the Bank may open savings accounts, under the conditions determined by, to children or adolescents, púberes, which may otherwise deposit and withdraw their deposits, while not a ruling to the contrary is notified to the banking institution. Legal representatives may not remove the deposits of their represented relatively incapable, without the consent of these. Chapter V prohibitions Article 22. ((Prohibitions).-the Bank may not: 1) make loans to encourage speculation of stock market or any other.
((((2) acquire shares of joint-stock companies, except in the cases provided for by paragraphs 18), 19) and 20) of article 13 of the present law or properties estate (out of which they need for the performance of the Bank and its dependencies or they are product of trust or use credit operations), being able however to receive or acquire shares, debentures and properties in payment or guarantee of debt whose collection can not be otherwise. Also you can buy bonds or shares in the case of operations of prefinanciamiento from issuance of obligations or actions involving their transient possession purposes of capitalization of the issuer.
The prohibition of acquisition of shares of corporations not governed the case establish or participate as a partner in a trading company whose exclusive purpose is the administration of pension saving funds.
(3) take part, directly or indirectly, in commercial or industrial operations unrelated to their rotation, with the exceptions provided for in this Act.
(4) grant credits or guarantees to the members of the Board to its senior staff, be they consultants or officials who carry out management functions, as well as companies or institutions of any nature, in which these officials act either rented or honorary, as directors, managers, Trustees, attorneys or in senior positions both in direction, management or advice either the direct or indirect situation through natural or legal persons of any kind. Except the ordinary operations of social credit or credit cards.
The prohibition provided for in this paragraph will remain until a year after the abandonment of the official fee. Chapter VI establishment of branches and agencies article 23. (Establishment of branches and agencies).-in addition to the branches that the Bank has established and must be maintained in all the departmental capitals, may install branches and agencies in other cities, with either permanent or transient. It may also establish branches, agencies and representations abroad, as three members of the Board and the Executive Branch authorization vote. Chapter VII relations of the Bank with the Executive article 24.-the State responds directly deposits and operations that make the Bank. Article 25.-The judicial deposits, from State or non-State, public institutions and individual guarantee of obligations and contracts with the State that payments shall be made in accordance with the legal and regulatory provisions in force at the date of the enactment of this Act. Chapter VIII DIVISION credit SOCIAL article 26.-La Division credit Social (National Fund of savings and discounts), will operate as a unit of the Bank and will be directed and administered by the Board of Directors. Article 27.-their operations shall be determined by the Board of Directors and will consist mainly in: to) agree on loans or loans with collateral of jewelry, furniture and other objects.
(B) granting credits or loans with or without retention of salary, public, private, retired employees or pensioners.
(C) granting credits or loans to people who exercise a profession or trade and offer a satisfactory guarantee.
(D) give salary advances to employees of public and private, as well as to pensioners on their retirement and pension. Article 28.-The interest charged on the loans granted by the Social credit Division will be established by the Board of Directors, who must ponder especially for those purposes, the social destination that have the same. Article 29.-All the existing references in the legislation to the national savings and discounts and all faculties it conferred upon them, shall be made to Social credit Division. Chapter IX provisions general article 30.-the limits for credits or loans, as well as for loans or investments planned in this Charter, are without prejudice to those that established the Central Bank of Uruguay for financial intermediation institutions. Article 31.-in the mortgage foreclosures initiated by the Bank, the judges ordered without further formality and directly at the request and under the responsibility of the former, the lifting of all however, second and subsequent mortgages or any other charge subsequent to the mortgage weighing on the sold property, for the sole purpose of the transfer of the domain. Costs and costs arising in case of execution of a second or subsequent mortgage, will not have priority over the bank credit. Article 32.-The Bank can request judges be given possession of the mortgaged properties and give him the embargo and immediate perception of their incomes to apply them to the payment of the services, administration and conservation of the properties, if debtors fail to spend ninety days from the dates when respective services should be paid. Article 33.-Declared public utility the acquisition of lands and farms that the Bank needed to establish or expand their offices or agencies. Article 34.-The Bank shall publish annually, previous visa of the Court of Auditors, accounting statements at the close of each fiscal year. The directory will notice annually its management to the Executive branch. The above provisions is without prejudice to meet the provisions governing banking activity in this area. Article 35.-The Executive power will dictate the general rules which should govern the Bank, in accordance with the provisions preceding. For those purposes, directory will formulate the corresponding project and raise it to the Executive branch. Article 36.-The take away granted appropriations covered by article 622 of the law Nº 15.903, of November 10, 1987, shall be granted for a minimum of three compliant votes of members of the Board. Article 37.-None of the provisions of the Act affects the powers of regulation, supervision, control and punitive laws according to the Central Bank of Uruguay on the Bank of the Eastern Republic of Uruguay as the institution's national financial system financial intermediation. Article 38.-Responsibilities, powers, powers, privileges or powers conferred to the Bank of the Republic East of the Uruguay in this Charter, are without prejudice to any other that had been committed by the legislation in force at the date of the enactment of the present, or that corresponding you as a financial intermediation institution. Article 39.-Repeal the law Nº 9.808, of 2 January 1939, articles 5 and 6 ° of the law Nº 13.243, on February 20, 1964, articles 1 and 2. º of the Decree-Law Nº 14.623, from January 4, 1977, and law Nº 17.416, of November 20, 2001. Article 40.-without prejudice to the provisions of the second paragraph of article 11 of the Charter organic of the Bank of the Republic East of the Uruguay, the Executive may require additional contributions of up to 30% (thirty per cent) of their annual net profits after debit taxes, destined for the creation of funds, with the aim of supporting the financing of viable and sustainable productive projects resulting from interest in the view of the Executive branch. The latter, through the Ministry of economy and Finance shall regulate the form of operation of the same. Article 41.-The Executive Branch sent in each accountability complete information regarding the use of the funds. Hall of sessions of the Senate, in Montevideo, December 15, 2010. DANILO ASTORI, President.
Hugo Rodriguez Filippini, Secretary. Ministry of economy and finance Montevideo, December 24, 2010. Met, acknowledge receipt, communicate, publish, and inserted into the national registry of laws and decrees, the law for amending provisions of the Charter organic of the Bank of the Republic East of the Uruguay. JOSÉ MUJICA.
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