Norma on the Purchase by Banks of Their Own Shares

Superintendencia de Bancos y de Otras Instituciones Financieras – Nicaragua

1

NORMA ON THE PURCHASE BY BANKS OF THEIR OWN SHARES

(CD-SIBOIF-226-2-NOV13-2002)

First: All institutions subject to the supervision of this Superintendency may purchase their own shares solely and exclusively in the following cases, always with the prior written authorization of the Superintendent:

1. When such purchase is made to reduce the social capital of the entity; or
2. When shares of one or more shareholders are purchased simultaneously with new capital contributions by other shareholders, whether old or new, so that, as a net effect of such transactions, the paid-up social capital of the entity is not reduced.

Second: The norm contained in the preceding article is incorporated into the regulations on investments and placements applicable, according to the business activity of the affected entity.

Third: The norm contained in the First Article of this resolution enters into force upon its notification to the supervised entities, without prejudice to its publication in La Gaceta Official Gazette.