SGDB N 046/2015: Requirements for Incorporation into the Integrated Payment Settlement System (LIP)

[Logo: Central Bank of Bolivia]

B.C.B. / DGD-VUC
2015 SEP 25 AM 11: 02

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA La Paz, September 22, 2015 SGDB No. 046/2015

FROM: GENERAL MANAGEMENT
TO: OPEN OR CORPORATE SAVINGS AND CREDIT COOPERATIVES, DEVELOPMENT FINANCIAL INSTITUTIONS, AND HOUSING FINANCIAL ENTITIES.
SUBJECT: REQUIREMENTS FOR INCORPORATION INTO THE INTEGRATED PAYMENT SETTLEMENT SYSTEM (LIP) BY FINANCIAL INSTITUTIONS IN COMPLIANCE WITH LAW No. 393, FINANCIAL SERVICES LAW

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB) reminds all Financial Entities undergoing adaptation under Law No. 393 on Financial Services that, in compliance with Article 14 of the Regulations of the Integrated Payment Settlement System approved by Board Resolution No. 061/2014 of June 10, 2014, "All financial intermediation entities supervised by the ASFI that hold an account at the BCB must use the LIP for processing their payment orders. (..)", consequently, they must subscribe to the "Contract for Opening of Reserve Account and Financial Services" with the BCB.

To this end, they must submit a request note for subscription of the aforementioned Contract, addressed to Mr. Carlos Colodro López, Acting General Manager of the BCB, attaching the following documentation:

I. For OPEN OR CORPORATE SAVINGS AND CREDIT COOPERATIVES:

1. Legalized copy of the Resolution obtaining Legal Personality issued by the Authority for the Supervision and Control of Cooperatives (AFCOOP).
2. Legalized copy of the Testimony of the Public Deed of Constitution.
3. Legalized copy of the Registration in the State Register of Cooperatives.
4. Legalized copy of the Operating License specifying the adaptation of the Financial Entity, issued by the ASFI.
5. Legalized copy of the Organic Statute(s) of the entity.
6. Legalized copy of the Testimony of Power of Legal Representation of the person(s) who will sign the Contract.
7. Simple copy of the Identity Card(s) of the Legal Representative(s).
8. Simple copy of the Certificate of Registration in the National Taxpayer Registry (NIT).

II. For DEVELOPMENT FINANCIAL INSTITUTIONS:

1. Legalized copy of the Resolution obtaining and registering Legal Personality issued by the Ministry of Economy and Public Finance, when their activities are carried out in more than one department, or by the Autonomous Departmental Government of their jurisdiction, when their activities are carried out within the geographic area of a single department.
2. Legalized copy of the Testimony of the Public Deed of Constitution.
3. Legalized copy of the Operating License specifying the adaptation of the Financial Entity, issued by the ASFI.
4. Legalized copy of the Organic Statute(s) of the entity.
5. Legalized copy of the Testimony of Power of Legal Representation of the person(s) who will sign the Contract.
6. Simple copy of the Identity Card(s) of the Legal Representative(s).
7. Simple copy of the Certificate of Registration in the National Taxpayer Registry (NIT).

III. For HOUSING FINANCIAL ENTITIES:

1) Original updated Certificate of Commercial Registration issued by the Commercial Registry (FUNDEMPRESA).
2) Legalized copy of the Testimony of the Public Deed of Constitution.
3) Legalized copy of the Testimony of the Public Deed of Transformation.
4) Legalized copy of the Operating License specifying the adaptation of the Financial Entity, issued by the ASFI.
5) Legalized copy of the Organic Statute(s) of the entity.
6) Legalized copy of the Testimony of Power of Legal Representation of the person(s) who will sign the Contract.
7) Simple copy of the Identity Card(s) of the Legal Representative(s).
8) Simple copy of the Certificate of Registration in the National Taxpayer Registry (NIT).

Furthermore, for the subscription of the "Contract for Opening of Reserve Account and Financial Services," the Testimony of Power of Legal Representation must expressly and non-limitatively include the following powers:

I. For signatory or signatory:

• The (name of the entity) in its capacity as a participant of the Integrated Payment Settlement System (LIP), grants power to (name of the legal representative), to act in its name and representation and in its capacity as signatory or signatory of the self-signed digital certificates we issue, to generate the digital signature to be used in any electronically digitally signed document in the Integrated Payment Settlement System, issued in the name of (name of the entity).
• To obligate, in the name of the entity, to celebrate, sign, modify, resolve, and/or dissolve any type of contract, agreement, or legal act with the BCB, in order to comply with what is provided in the Regulations of the LIP Payment System, within the framework of the competencies of the BCB established in Law No. 1670, and the terms that could be established in any contract to be subscribed with the BCB to implement the Regulations of the Integrated Payment Settlement System.
• Authorization to the BCB to dispose of its assets regarding the RAL Fund and debits in current and reserve accounts, reserve accounts or current account, which are debits established by Law, Supreme Decrees, or Board Resolutions, collection of commissions according to the BCB's "Commission Table for Services," debits for overdue obligations, and others.
• To delegate to the Issuer Entity the power to dispose of its reserve resources constituted in titles, so that the BCB can, either itself or through delegated administrators of the RAL FUND, authorize their sale, repurchase, discount, early redemption, delivery as collateral, and carry out with said titles any operation or act necessary to successfully carry out the administration of the RAL FUND.
• To authorize the BCB to carry out fund transfers, including automatic credits and debits from its various accounts at the BCB, in order to implement the aforementioned Regulations, as well as to operationalize the management of the mentioned accounts.
• To accredit before the BCB the authorized signatures for the management of its accounts and any act arising from contracts subscribed with the BCB.
• To constitute and delegate the constitution of guarantees in the name of the financial entity on cash, fixed-income securities, and/or any other financial document, deposited in its name in a reserve account it maintains at the BCB and any other contract that requires it.

II. For digital certificate exchange:

• The (name of the entity) in its capacity as a participant of the Integrated Payment Settlement System (LIP), grants power to (name of the legal representative), to act in its name and representation to deliver and receive self-signed digital certificates, as well as to sign the respective minutes of exchange of digital certificates of the Integrated Payment Settlement System.

On the other hand, it must be considered that the Testimony of Power must contain the transcription of the relevant parts of the Statutes or constitutive documents of the Financial Entity, by which the Board of Directors, Board of Directors, or other administrative organs of the entity are authorized according to regulations, to confer special powers with powers of asset disposal. Likewise, minutes or resolutions authorizing the attorney(s) to carry out this mandate with powers of asset disposal within the framework established in this Circular must be incorporated.

Finally, pursuant to Article 165 of the Commercial Code, the Testimony of Power of Legal Representation for the signing of the aforementioned contract must be registered in the Commercial Registry. (Development Financial Institutions are exempt from this requirement).

Any doubts or queries will be attended to by the LIP Help Desk via email at ayudalip@bcb.gob.bo or by phone at 2407262, 2147077, 2661623, and 2661645.

Sincerely,

[Signature]
CARLOS A. COLODRO LÓPEZ
ACTING GENERAL MANAGER
CENTRAL BANK OF BOLIVIA

CCL/MMV/AMR/RPR/GVV/AOB/APM/jkt.

Ayacucho y Mercado • Tel: (591-2) 2409090 • P.O. Box: 3118 www.bcb.gob.bo • bcb@bcb.gob.bo • La Paz-Bolivia