Norm for the Revocation of Authorization to Operate as a General Warehouse for Deposit

Page 1 of 4 Resolution No. CD-SIBOIF-1259-1-JULIO20-2021 Dated July 20, 2021

NORM FOR THE REVOCATION OF THE AUTHORIZATION TO OPERATE AS A GENERAL WAREHOUSE FOR DEPOSIT

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That in accordance with Article 5 of Law No. 734, "Law of General Warehouses for Deposit," published in La Gaceta, Official Diary, No. 201, of October 21, 2010, and No. 202, of October 22, 2010, contained in the Registry of Current Norms of Law No. 974, "Law of the Nicaraguan Legal Digest of the Banking and Finance Matter" (Legal Digest), published in La Gaceta, Official Diary No. 164, of August 27, 2018, and its updates, General Warehouses for Deposit are non-bank financial institutions that provide financial services as a credit auxiliary institution and whose purpose is the deposit, conservation, custody, and handling of merchandise, for which they may issue Deposit Certificates and Pledge Bonds. Furthermore, they may also provide fiscal-type services in accordance with the provisions of the laws on the matter. This latter point is in concordance with the provisions of Articles 56 and 57 of the same Law No. 734.

II

That according to Article 3, numeral 13), of Law No. 316, "Law of the Superintendence of Banks and Other Financial Institutions" (Superintendence Law), contained in the aforementioned Legal Digest, the Superintendence may issue norms and provisions necessary for the fulfillment of its legal object and, in concordance, numeral 16) of the same article adds that said entity may carry out all those activities compatible with its nature and any other that the laws provide.

III

That in accordance with Article 10, final part, of the Superintendence Law, the Board of Directors of the Superintendence enjoys general regulatory authority, provided it is compatible with the object of said law.

IV

That, based on the legal powers previously established, it is necessary to establish the requirements that General Warehouses for Deposit must follow when they voluntarily decide to request the revocation of their authorization to operate, in order to dedicate themselves exclusively to providing other services different from those corresponding to a General Warehouse for Deposits, as a credit auxiliary institution.

In exercise of its powers,

HAS ISSUED

The following, CD-SIBOIF-1259-1-JULIO20-2021

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NORM FOR THE REVOCATION OF THE AUTHORIZATION TO OPERATE AS A GENERAL WAREHOUSE FOR DEPOSIT

CHAPTER I GENERAL PROVISIONS

Article 1. Concepts.- For the application of this norm, the concepts indicated in this article, both in uppercase and lowercase, singular or plural, shall have the following meanings:

a) Warehouse or Storage Company: Non-bank financial institution that provides financial services as a credit auxiliary institution and whose purpose is the deposit, conservation, custody, and handling of merchandise and products of national or foreign origin, issuing Deposit Certificates and Pledge Bonds on said merchandise. Warehouses may also provide value-added services and fiscal-type services in accordance with the provisions of the laws on the matter, under the terms of Law No. 734, "Law of General Warehouses for Deposit."

b) BP: Pledge Bond.

c) CD: Deposit Certificate.

d) Board of Directors: Board of Directors of the Superintendence of Banks and Other Financial Institutions.

e) Law No. 734: Law of General Warehouses for Deposit, published in La Gaceta, Official Diary, No. 201, of October 21, 2010, and No. 202, of October 22, 2010, contained in the Registry of Current Norms of Law No. 974, "Law of the Nicaraguan Legal Digest of the Banking and Finance Matter," published in La Gaceta, Official Diary No. 164, of August 27, 2018, and its updates.

f) Superintendence: Superintendence of Banks and Other Financial Institutions.

g) Superintendent: Superintendent of Banks and Other Financial Institutions.

Article 2. Object and Scope.- This norm aims to establish the requirements that Warehouses must fulfill when they voluntarily decide to request the revocation of their authorization to operate, such that they will no longer issue CDs and BPs, to dedicate themselves to providing the services established in their bylaws.

CHAPTER II REQUIREMENTS AND PROCEDURE FOR THE REVOCATION OF THE AUTHORIZATION TO OPERATE

Article 3. Requirements.- Warehouses that voluntarily decide to request the revocation of their authorization to operate must present the following documentation:

a) Request letter addressed to the Superintendent, signed by an official expressly authorized by the General Shareholders' Meeting, in which they express that they request the revocation of the authorization to operate as a Warehouse, providing an exposition of the reasons supporting this decision, indicating, in addition, that there are no CDs and BPs in circulation, whose originals were recovered and cancelled by the Storage Company, and that the unused formats of CDs and BPs were annulled.

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b) Certification of the minutes of the General Shareholders' Meeting in which the cessation of operations as a Warehouse is agreed upon, and the official who will carry out the procedure and present the corresponding documentation for the cancellation of the authorization before the Superintendent is delegated and empowered.

c) Draft modification to the bylaws in which references to the authorization to operate granted by the Superintendence and the term "General Warehouse for Deposit" in its social denomination and commercial name are suppressed, along with other pertinent clauses and articles in the case of the statutes, that relate to this authorization.

d) Declaration signed before a public notary by the General Manager or by a person authorized by the Board of Directors certifying the following:

1. That there are no CDs or BPs in circulation issued by the Warehouse and that all were cancelled in accordance with their legal framework.

2. That the remaining unused formats of CDs and BPs, originals and copies, were rendered useless with an "annulled" stamp, indicating, in addition, the numbering from the first to the last of the annulled formats; and

3. Mention that the titles and formats referred to in numerals 1) and 2) are the total issued and printed by the Warehouse.

e) Internal Audit Report in which it is confirmed that the most recent financial statements of the Storage Company do not reflect operations of CDs and BPs, and that the settlement process of all CDs and BPs and the rendering useless with an "annulled" stamp of all unused formats was carried out in accordance with the legal framework of the Warehouse; and that there are no observations regarding this matter.

f) Any other information, clarification, or expansions that the Superintendent deems necessary in order to fulfill the object of this norm.

Article 4. Analysis and Additional Documentation.- Once the documentation referred to in the previous article is presented in full, the Superintendence will proceed to verify and analyze its scope and content. To consider these requirements fulfilled, in addition to the verification and analysis process it carries out, the Superintendence will require the corresponding officials of the Warehouse to provide all certifications, documentation, or receipts necessary to verify the aforementioned aspects.

Having satisfactorily verified the review and analysis of the previous documentation, the Superintendent will additionally require the Warehouse to present the following:

a) Certification of the minutes of the General Shareholders' Meeting where it is evidenced that the shareholders knew and approved the administration and internal audit reports on the process of cancelling the Warehouse's operations, mainly the cancellation of all CDs and BPs issued by it and the annulment of all unused CD and BP formats.

b) Payment of the total annual fee of the Superintendence, for which evidence of the same must be attached.

Article 5. Revocation of Authorization to Operate.- Once the requirements referred to in the previous articles are met, the Superintendent will present said request to the Board of Directors so that it, based on what is established in this norm, can issue the resolution revoking the authorization to operate as a Warehouse, which must be published in "La Gaceta," Official Diary, at the expense of the entity, and must be registered in the corresponding Public Mercantile Registry, also at its expense, along with the reforms to the bylaws and statutes in which references to the authorization to operate granted by the Superintendence and the term "General Warehouse for Deposit" are suppressed in its social denomination and commercial name.

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Article 6. Publication.- The Superintendent will require the petitioners to publish for three consecutive days in a newspaper of wide national circulation and, if applicable, on their Web page, a notice informing their clientele and the general public that, from the date of the resolution mentioned in the previous article, by disposition of the General Shareholders' Meeting, voluntarily, the entity is no longer under the supervision of the Superintendence and does not perform General Warehouse for Deposit activities, for which said resolution must be attached.

CHAPTER III FINAL PROVISIONS

Article 7. Validity.- This norm will enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Diary.

(F) Illegible Magaly María Sáenz Ulloa (F) Illegible (Luis Ángel Montenegro E) (F) Illegible Fausto Reyes (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Ervin Antonio Vargas Pérez).

SAÚL CASTELLÓN TÓRREZ Ad Hoc Secretary Board of Directors SIBOIF