Regulatory Alerts1999-04-20 | Resolución 032/99Added · Updated
Resolution 032/99
The Board of Directors of the Central Bank of Bolivia modifies the validity period of the subsidiary asset guarantee established in favor of Banco de Crédito de Bolivia S.A. under Resolution 100/98, extending it to five years. The new term consists of an initial two-year period for the bank to notify the Central Bank of the start of judicial execution against debtors, followed by a three-year period to exhaust all judicial actions for the execution of debtors' assets. All other provisions of Resolution 100/98 remain unchanged.
BOARD RESOLUTION NO. 032/99 SUBJECT: LEGAL ADVICE – APPROVES MODIFICATION OF BOARD RESOLUTION NO. 100/98 REGARDING THE VALIDITY PERIOD OF THE SUBSIDIARY ASSET GUARANTEE ESTABLISHED BY THE BCB IN FAVOR OF BANCO DE CREDITO DE BOLIVIA S.A.
HAVING SEEN:
The Law of the Central Bank of Bolivia No. 1670 of October 31, 1995. The Regulation for Operations to Support the Strengthening of Financial Entities, approved by Board Resolution No. 094/97 of March 25, 1997. Board Resolution No. 100/98 of November 10, 1998. The Note from Banco de Crédito de Bolivia S.A. REF: GGC-012/99 of April 19, 1999. The Report from the Legal Advisory Office ALEG No. 023/99 of April 20, 1999.
CONSIDERING:
That in order to preserve and strengthen the stability of the national financial system and to carry out the merger process between Banco de Crédito de Bolivia S.A. and Banco de La Paz S.A., the Central Bank of Bolivia, through Board Resolution No. 100/98, authorized its President to sign a contract establishing a subsidiary asset guarantee for an amount of up to $us. 700,000.- in favor of Banco de Crédito de Bolivia S.A., determining in said resolution the conditions under which the subscription of said contract is authorized.
That Banco de Crédito de Bolivia has argued, due to the prolonged time required for judicial actions to recover credits, that the validity period of the subsidiary asset guarantee established by the BCB in favor of said financial entity be extended, having manifested through note GGC-012/99 of April 19, 1999, its willingness to accept the new five-year term defined for this purpose by the Board.
That in the opinion of the Legal Advisory Office, the Board has the authority to review, modify, and interpret its own decisions.
//2 B.R. No. 032/99
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Article 1 of Board Resolution No. 100/98 is modified, solely with regard to the extension of the term to five years, in the following terms:
Term: a) Two years from the date of expiration of the term established in public deed No. 3832/98 of October 7, 1998, for the payment of obligations incurred in the contract for the sale of movable and immovable property, within which period Banco de Crédito de Bolivia S.A. must notify the BCB in writing regarding the start of judicial execution against debtors due to pending payment obligations. b) Three years from the expiration of the term indicated in the preceding paragraph, within which period Banco de Crédito de Bolivia S.A. will exhaust judicial actions for the execution of all assets of the debtors.
Article 2.- The remaining provisions of Board Resolution No. 100/98 remain unchanged.
Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, April 20, 1999
Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G.
Juan Medinaceli V. Armando Méndez M.
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