CIEX No. 39/2019: Subscription of Account Opening and Financial Services Contract

7. GENERAL DIRECTORATE La Paz, 31 May 2019 CIEX No. 39/2019 FROM GENERAL DIRECTORATE TO STATE FINANCIAL ENTITIES OR WITH MAJORITARY STATE PARTICIPATION AND PRIVATE FINANCIAL INTERMEDIATION ENTITIES SUBJECT: SUBSCRIPTION OF ACCOUNT OPENING AND FINANCIAL SERVICES CONTRACT

Ladies and Gentlemen:

In the framework of the Political Constitution of the State of February 2009, Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and Law No. 393 of August 21, 2013, which grant the authority to regulate the BCB payment system, and considering that new regulations concerning legal reserves, payment services, electronic payment instruments, compensation and liquidation, the Integrated Payment Liquidation System, among others, have been issued, the BCB communicates to the State Financial Entities or with majority State participation and to the Private Financial Intermediation Entities that are current participants of the LIP System, that a new "Account Opening and Financial Services Contract" will be subscribed, which will render void the current Contracts subscribed with the Issuer Entity.

To this effect, the aforementioned Entities must request in writing from the General Directorate of the BCB by June 14, 2019, without fail, the subscription of the new "Account Opening and Financial Services Contract", specifying the name of the legal representative(s) of the Entity, for which they must send to the Issuer Entity the respective special power of attorney granted before a Notary of Public Deeds, with the powers to subscribe any contract with the BCB in order to implement the Regulation of Legal Reserves for Financial Intermediation Entities and the Regulation of the Integrated Payment Liquidation System, which must contain in a textual manner, without limiting character, the following wording:

(THE NAME OF THE ENTITY) grants special power to (NAME OF LEGAL REPRESENTATIVE/S) to act in their name and representation to perform the following acts:

1. Subscribe, modify, resolve and/or rescind any type of Contract or document with the Central Bank of Bolivia (BCB) to operate in the Integrated Payment Liquidation System.
2. Authorize the BCB to effect the disposition of assets regarding the Liquidity Assets Requirement Fund (RAL).
3. Authorize the BCB to perform debits of the accounts opened at the Issuer Entity, established in express regulations and/or for overdue obligations.
4. Authorize the BCB to collect commissions and fines according to the BCB's "Table of Commissions for Services" and "Table of Fines", respectively.
5. Delegate to the BCB the faculty to dispose of the legal reserve resources constituted in titles, so that the BCB can by itself or through its delegated administrators of the RAL Fund, authorize their sale, repo, discount, early redemption, delivery as collateral, as well as perform with said titles any operation or act that is necessary to successfully carry out the administration of the RAL Fund.
6. Authorize the BCB to perform fund transfers, including automatic credits and debits of their various accounts at the BCB, in order to operationalize the Integrated Payment Liquidation System, as well as for the management of the mentioned accounts.
7. Credit to the BCB the authorized signatures for the management of their accounts and of any act derived from the contractual relationship with the BCB.
8. Constitute and delegate the constitution of guarantees in the name of (NAME OF THE ENTITY) on cash money, fixed income securities and/or any other financial document deposited in their name in their reserve account.
9. Generate the digital signature to be used in any digitally signed electronic document in the Integrated Payment Liquidation System.
10. Deliver and/or receive self-signed digital certificates and/or digital certificates issued by the corresponding Certification Entity.
11. Subscribe minutes of exchange of self-signed digital certificates.

Regarding this, by virtue of what is provided in article 165 of the Commercial Code, the Testimony of Special Power sent to the BCB by the Financial Entities for the subscription of the new "Account Opening and Financial Services Contract" must be registered with the Concessionaire of the Commercial Register of Bolivia, FUNDEMPRESA (Savings and Credit Cooperatives and Development Financial Institutions are exempt from this requirement).

On the other hand, we communicate that it is not necessary to send additional legal documentation to the BCB (except modification of the documents sent to the Issuer Entity for the subscription of the current contract within the framework of the LIP System).

It should be noted that in case of non-compliance with what is provided in this Circular by the mentioned Entities, the BCB will communicate this situation to the ASFI so that this authority applies the corresponding fines or sanctions.

Any doubt or query, please contact the following emails: ayudalip@bcb.gob.bo or rcamacho@bcb.gob.bo or to the telephone number 2661236.

Sincerely,

[Signature] General Director

Central Bank of Bolivia Plurinational State of Bolivia