Regulatory Alerts2023-08-24
Circular No. 004-2004 on the Procedure, Form and Mandatory Details of First-Demand Guarantees for Regional UMOA Bond Issuance Authorizations
The UMOA Regional Council for Public Savings and Financial Markets issued Circular No. 004-2004 to establish mandatory procedures, forms, and details for first-demand guarantees submitted with regional bond issuance authorization requests. The circular requires issuers, investment management and intermediation companies, and guarantors to submit a prior letter of intent specifying principal and interest coverage rates, along with an original or certified resolution authorizing the guarantee. Final authorization and subscription commencement are strictly conditioned upon transmitting executed guarantee letters or agreements to the Council, with strict compliance to Article 30 of the Uniform Act on Security Interests and Decision No. 009/01/2000 to avoid nullity.