Resolution 151/97

BOARD RESOLUTION NO. 151/97
SUBJECT: FINANCIAL SYSTEM - AUTHORIZES PARTIAL SUBROGATION OF DEPOSITORS' RIGHTS OF THE SAN JOSE OBRERO LTD. COOPERATIVE IN LIQUIDATION.

HAVING SEEN:
The Banking and Financial Entities Law No. 1488 of April 14, 1993.
The Law of the Central Bank of Bolivia (BCB) No. 1670 of October 31, 1995.
The Resolution of the Superintendency of Banks and Financial Entities SB No. 094/97 of September 15, 1997.
The Report of the Financial System Management GSF No. 161/97 of September 15, 1997.
The Report of the Economic Policy Advisory ARM and F No. 53/97 of September 15, 1997.
The Report of the Legal Advisory ALEG No. 136/97 of September 15, 1997.

CONSIDERING:
That Law 1488, in its Article 128, establishes that the BCB may subrogate the rights of non-bankruptcy creditors mentioned in articles 1386, 1410, and 1611 of the Commercial Code.
That Law 1670 in its Article 38 subsection e), establishes that in cases duly qualified by its Board, the BCB may subrogate total or partial rights of depositors of financial entities, acquiring these rights for cash or on installment.
That under the auspices of the Cooperative Law and D.S. 24255 of March 9, 1996, the San José Obrero Ltda. Cooperative has been intervened by the Ministry of Labor since March 11, 1996.

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That the Superintendency of Banks and Financial Entities (SBEF), through Resolution SB No. 094/97 of September 15, 1997, has ordered the forced liquidation of the San José Obrero Ltda. Cooperative because the alternatives for strengthening said financial entity through merger and/or absorption with other cooperatives did not succeed, as well as due to the continuous deterioration of its economic-financial situation, accumulating losses exceeding 50% of its net equity. That in the analysis of the San José Obrero Ltda. Cooperative in liquidation, carried out by the Financial System Management in its Report GSF No. 161/97, it is established that the majority of deposits in said entity are concentrated among small savers and that it is necessary to protect them because they generally do not have information to evaluate the risk situation in this type of institution. That on an extraordinary basis and with the purpose of protecting the small savers of the Cooperative, it has been deemed appropriate to subrogate their deposits.

That the Principal Economic Policy Advisory in its report ARM and F No. 53/97 states that, in the current situation, the partial subrogation of deposits in favor of the small savers of the San José Obrero Ltda. Cooperative in liquidation, although it affects the Monetary Program, does not represent a significant incidence in it. That in the opinion of the Legal Advisory in Report ALEG No. 136/97, the Institution's Board is authorized to authorize the partial subrogation of depositors' rights. That it corresponds to the Superintendency of Banks and Financial Entities to recover the resources committed by the BCB in this partial subrogation. Therefore, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

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Article 1.- Authorize the partial subrogation of the depositors' rights of the San José Obrero Ltda. Cooperative in liquidation, according to the criteria established in this Resolution.
Article 2.- The maximum subrogation amount per depositor will be equivalent to US$ 5,000.00 (Five thousand 00/100 Dollars of the United States of America), which will be paid in the originally agreed currency.
Article 3.- For the calculation of the subrogation amount of each depositor in the different savings modalities, the capital will be consolidated as of the date of liquidation.
Article 4.- The return of deposits with subrogation of rights to the BCB will be the responsibility of the Liquidator Intendant, legally designated by the Superintendent of Banks and Financial Entities, who will be responsible for qualifying the claims and consolidating them, as well as verifying the identity and right of the depositors.
Article 5.- Depositors and savers who wish to adhere to the provisions of this Resolution must present themselves before the entity in liquidation with the original documents that accredit their creditor rights.
If the consolidated deposit claim is equal to or less than the maximum subrogation amount, the probative documents of the right will be delivered to the payer duly endorsed in favor of the BCB.
If the consolidated deposit claim is greater than the maximum subrogation amount, the documents will be exhibited and presented so that the payer notes the partial payments on them.

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In both cases, for the total amount received, the depositors will sign the documents called "Assignment of Rights for Restitution and Payment" and "Declaration of Deposits," which form part of this Resolution in Annex (I and II).
Article 6.- It will be the responsibility of the Liquidator Intendant to give public notice to the savers of the Cooperative regarding the partial return of deposits, as well as to safeguard the documents mentioned in the preceding article, until the respective reconciliation and accounting report that must be presented to the BCB.
Article 7.- In application of Article 128 of Law 1488 and Article 38 subsection e) of Law 1670, the subrogation of the depositors' rights of the San José Obrero Ltda. Cooperative will occur in favor of the BCB, by operation of law, in the amounts qualified and required by the Liquidator Intendant.
The rights acquired by the BCB in this manner will enjoy preference over any other creditor. To this effect, the Liquidator Intendant will prepare a Specific Plan for the recovery of assets of the Cooperative, which will be presented to the BCB, with the approval of the Superintendent of Banks and Financial Entities, within a period not exceeding one hundred eighty (180) days from the start of the liquidation process. This Plan will also be presented to the Judge of the liquidation, together with the list of approved claims.
Article 8.- The Specific Plan mentioned above will include, among other aspects, the most advisable actions and measures for the safeguarding of the BCB's rights, as well as the periodic sending of financial and accounting information and the presentation of the external audit opinion of the liquidation.

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Article 9.- The Presidency and the General Management are charged with the compliance and execution of this Resolution.

15.IX.97

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinacelli V. Fernando Campero P.