Norm on Capital of the Banco Produzcamos

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Resolution No. CD-SIBOIF-587-1-MAY29-2009
Dated May 29, 2009
NORM ON CAPITAL OF THE BANCO PRODUZCAMOS

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

CONSIDERING

I
That on May 5, 2009, Law No. 684, Law of Reforms to Law No. 640, "Law Creating the Bank for the Promotion of Production (Produzcamos)," was approved.

II
That Article 4 of Law No. 640, Law Creating the Bank for the Promotion of Production (Produzcamos), was reformed by the aforementioned Law No. 684, establishing that the authorized capital of the bank shall be one billion córdobas and shall be composed of the net contribution of the State plus the net contribution and other assets of other state entities. It also establishes that the initial social capital may be less than the aforementioned authorized capital and that the provisions on required minimum capital contained in Law No. 561, General Law of Banks, Non-Bank Financial Institutions and Financial Groups, are not applicable to said institution.

III
That in accordance with the aforementioned legal provisions, it is necessary to regulate the minimum capital that the institution must maintain from the first contribution it receives, until reaching the amount of authorized capital as established in the aforementioned reformed Article 4.

IV
That based on the Law of the Banco Produzcamos and its reforms and on the authority conferred by Article 3, numbers 3 and 13; and Article 10, number 6, of Law No. 316, Law of the Superintendence of Banks and Other Financial Institutions and its reforms.

In exercise of its powers,

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HAS ISSUED,
The following:

Resolution No. CD-SIBOIF-587-1-MAY29-2009
NORM ON CAPITAL OF THE BANCO PRODUZCAMOS

Art. 1 Concepts.- For the purposes of application of the provisions contained in this norm, the terms indicated in this article, both in uppercase and lowercase, singular or plural, shall have the following meanings:
a. Bank: Bank for the Promotion of Production or Banco Produzcamos. b. Authorized Capital: One billion córdobas referred to in Article 4 of the Law of the Banco Produzcamos.
c. Capital Sources: The net equity of the entities and the net contributions of the State referred to in Articles 4 and 5 of the Law of the Banco Produzcamos, respectively;
d. Law of the Banco Produzcamos: Law 640, Law Creating the Bank for the Promotion of Production (Produzcamos) and its reforms contained in Law No. 684, Law of Reforms to Law No. 640, "Law Creating the Bank for the Promotion of Production (Produzcamos)." e. Net Equity: The result of the differential between assets and liabilities linked to the credit programs of the entities referred to in Article 4 resulting from the audits to which Article 40 of the Law of the Banco Produzcamos refers.

Art. 2 Object and Scope.- This norm aims to establish the minimum capital requirements that the Bank must comply with, in accordance with what is established in Articles 4 and 5 of the Law of the Banco Produzcamos.

Art. 3 Minimum Capital.- The minimum capital shall be the initial item resulting from any of the capital sources.

This minimum capital shall be increased each time additional contributions from the capital sources are made, until reaching the amount of authorized capital, which shall be considered as the minimum capital. If contributions from the capital sources exceed the authorized capital, the excess shall become part of the capital reserves, as established in the Law of the Banco Produzcamos.

Art. 4 Repeal.- The Norm on Social Capital of the Banco Produzcamos, contained in Resolution No. CD-SIBOIF-520-3-FEB1-2008, dated February 1, 2008, published in La Gaceta, Official Gazette No. 45, of March 4, 2008, is repealed.

Art. 5 Effectiveness. This norm shall enter into force from its publication in La Gaceta, Official Gazette.

(f) A. Rosales B. (f) V. Urcuyo V. (f) Gabriel Pasos Lacayo (f) Roberto Solórzano Ch. (f) A. Cuadra G. (f) Fausto Reyes B. (f) Antonio Morgan Pérez. Ad hoc Secretary.

URIEL CERNA BARQUERO
Secretary of the Board of Directors SIBOIF