Resolution 130/2004

BOARD RESOLUTION NO. 130/2004
SUBJECT: BOARD – INTERPRETS AND CLARIFIES APPLICATION OF ARTICLE 89 OF THE PORTFOLIO ADMINISTRATION AND ASSET SALE REGULATIONS MODIFIED BY BOARD RESOLUTION NO. 117/2004 OF AUGUST 10, 2004

SEEN:
The Law No. 1670 of October 31, 1995.
The Supreme Decree No. 26688 of July 5, 2002.
The Supreme Resolution No. 218899 of October 15, 1999.
The Statute of the Central Bank of Bolivia of December 13, 2001.
The Board Resolutions No. 093/99 of October 15, 1999, No. 101/99 of November 23, 1999, No. 077/2002 of July 16, 2002, No. 093/2004 of June 29, 2004 and No. 117/2004 of August 10, 2004.
The Administration Mandate Contract of December 1, 1999.
The Report from the Financial Entities Management GEF-SRRA No. 214/2004 of August 9, 2004.
The Report from the Legal Affairs Management SAJU No. 089/2004 of July 21, 2004.

CONSIDERING:
That the Board, with the attribution conferred by subsection a) of Article 54 of Law No. 1670, through Resolutions No. 093/2004 and No. 117/2004 modifies and complements Article 89 of the Portfolio Administration and Asset Sale Regulations.

That according to subsection o) of Article 54 of Law No. 1670, the Board, by two-thirds vote of all its members, without the need for any additional administrative act, may approve, modify, and interpret the statutes and regulations of the BCB.

That it is necessary to interpret and clarify the application of said Article 89 of the Portfolio Administration and Asset Sale Regulations.

THEREFORE
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- To clarify and interpret the application of Article 89 of the Portfolio Administration and Asset Sale Regulations modified by Board Resolution No. 093/2004 of June 29, 2004 and complemented by Board Resolution 117/2004 of August 10, 2004, under the following terms:

SAYS:
Article 89.- Direct sale includes publications and promotion in the main written media of the country.

Purchase proposals in the direct sale modality shall be presented to the Mandatary in sealed envelopes. In the event that the offered price is lower than the book value or the last appraisal, the Mandatary will consult the Recovery and Asset Realization Committee of the Principal, which will rule within a period not exceeding five (5) days. If it does not do so within the stated period, the proposal shall be understood as approved.

The procedure described in the preceding paragraphs may be modified by the Mandatary in those cases of rural properties awarded in the credit recovery process of the portfolio corresponding to the return of the Irregular Mercantile Deposit (BCB IV) in which there is a formal purchase offer and whose custody and dispossession is difficult and costly. In these cases, the requirement to be in possession of the property, established in Article 103 of this Regulation, shall not be required of the mandatary. To that effect, once the formal purchase proposal is received, the Mandatary will carry out the sale publications in which the existence of occupants in the property and the exclusion of seller liability regarding eviction and clearing of the property regarding this aspect will be noted.

Fifteen (15) days after the publication, it will send all proposals, including the formal purchase offer, to the BCB Asset Recovery and Realization Committee, for its consideration and approval, accompanied by a legal, technical, and financial report on the convenience of the sale, provided that the offered value is equal to or greater than the commercial value of the last updated appraisal, but not lower than the quick sale value.

SHOULD SAY:
“Article 89.- Direct sale includes publications and promotion in the main written media of the country.

Purchase proposals in the direct sale modality shall be presented to the Mandatary in sealed envelopes. In the event that the offered price is lower than the book value or the last appraisal, the Mandatary will consult the Recovery and Asset Realization Committee of the Principal, which will rule within a period not exceeding five (5) days. If it does not do so within the stated period, the proposal shall be understood as approved.

The procedure described in the preceding paragraphs may be modified by the Mandatary in those cases of rural properties awarded in the credit recovery process of the portfolio corresponding to the return of the Irregular Mercantile Deposit (BCB IV) in which there is a formal purchase offer and whose custody and dispossession is difficult and costly. In these cases, the requirement to be in possession of the property, established in Article 103 of this Regulation, shall not be required of the mandatary. To that effect, once the formal purchase proposal is received, the Mandatary will carry out the sale publications in which the existence of occupants in the property and the exclusion of seller liability regarding eviction and clearing of the property regarding this aspect will be noted. The mandatary within the 15 (fifteen) business days following the period for receiving proposals, will send a legal, technical, and financial report on the convenience of the sale, for its consideration and approval to the BCB Asset Recovery and Realization Committee, only if the offered purchase value is lower than the commercial appraisal value but higher than the quick sale value.”

Article 2.- The General Management is in charge of the execution and compliance with this Resolution.

La Paz, September 10, 2004

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Juan Antonio Morales A.

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Juan Medinaceli V. Enrique Ackermann A.

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José Luis Evia V. Fernando Paz B.

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Jaime Apt B.