SGDB No. 025/2014: Requirements for Incorporation into the Integrated Payment Settlement System (LIP) for Financial Intermediation Entities

[Logo of the Central Bank of Bolivia]

B.C.B. / DGD-VUC

2014 AUG - 1 AM 11: 17
CORRESPONDENCE
EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA La Paz, July 31, 2014 SGDB No. 025/2014

FROM: GENERAL MANAGEMENT
MANAGEMENT OF FINANCIAL ENTITIES
TO: FINANCIAL INTERMEDIATION ENTITIES
SUBJECT: REQUIREMENTS FOR INCORPORATION INTO THE INTEGRATED PAYMENT SETTLEMENT SYSTEM (LIP) – FINANCIAL INTERMEDIATION ENTITIES

Ladies and Gentlemen:

As you are aware, the Central Bank of Bolivia (BCB) communicated through External Circular SGDB No. 017/2014 of June 11, 2014, that by means of Board Resolution No. 061/2014 of June 10, 2014, the "Regulation of the Integrated Payment Settlement System - LIP" was approved, which will be put into production on August 18, 2014, replacing the High-Value Payments System (SIPAV).

In this regard, according to Article 14 (Mandatory Nature) of the LIP Regulation, "all financial intermediation entities supervised by the ASFI that have an account at the BCB must use the LIP for the processing of their payment orders." Consequently, financial intermediation entities must subscribe to the current account and/or reserve account and financial services contract, which will allow them to be participants of the LIP and access a credit line to request intraday credit.

To this effect, they must send no later than August 15, the following documentation addressed to Dr. Wilma Pérez Paputsachis, Acting General Manager of the BCB:

1) For Multiple Banks

• Application for subscription of the "Current Account and Reserve and Financial Services Contract" with the BCB.

• Legalized copy of the new Operating License granted by the ASFI, or the document authorizing its adaptation to Multiple Bank status.

• Legalized copy of the power of representation of the person(s) who will sign the aforementioned contract, as well as a simple copy of their identity card.

2) For SME Banks

• Application for account opening and subscription of the "Current Account and Reserve and Financial Services Contract" with the BCB.
• Legalized copy of the new Operating License granted by the ASFI.
• Legalized copy of the power of representation of the person(s) who will sign the aforementioned contract, as well as a simple copy of their identity card.
• Simple copy of the Tax Identification Number (NIT) reflecting the new corporate name.
• Legalized copy of the Public Deed of Transformation.
• Original Registration Certificate in FUNDEMPRESA.
• Any other documentation related to the transformation carried out.

3) For Housing Financial Entities (currently Savings and Loan Mutuals)

• Application for subscription of the "Reserve Account and Financial Services Contract" with the BCB.
• Legalized copy of the power of representation of the person(s) who will sign the aforementioned contract, as well as a simple copy of their identity card.

Once the corresponding procedure for their transformation is completed, Housing Financial Entities must attach the following documentation:

• Application for account opening and subscription of the "Reserve Account and Financial Services Contract" with the BCB.

• Legalized copy of the new Operating License granted by the ASFI.

• Legalized copy of the power of representation of the person(s) who will sign the aforementioned contract, as well as a simple copy of their identity card.

• Simple copy of the NIT reflecting the new corporate name.

• Legalized copy of the Public Deed of Transformation.

• Original Registration Certificate in FUNDEMPRESA.

• Any other documentation related to the transformation carried out.

4) For Savings and Credit Cooperatives

• Application for subscription of the "Reserve Account and Financial Services Contract" with the BCB.
• Legalized copy of the power of representation of the person(s) who will sign the aforementioned contract, as well as a simple copy of their identity card.

Likewise, for the issuance of powers of legal representation to be sent to the BCB, they must expressly consider, without limiting nature, the following powers:

• To bind, on behalf 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 Legal Reserve Regulation, within the framework of the BCB's competencies established in Law No. 1670, and the terms that could be established in any contract to be signed with the BCB to implement said Regulation.

• Authorization to the BCB for the disposition of its assets.

• To delegate to the Issuer Entity the power to dispose of its legal reserve resources constituted in securities, so that the BCB can, either by itself or by delegated administrators of the RAL FUND, authorize their sale, repurchase, discount, early redemption, delivery as collateral and carry out with said securities any operation or act that is 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 BCB accounts, in order to implement the aforementioned Regulation, as well as to operationalize the management of its accounts at the BCB.

• To accredit before the BCB, the authorized signatures for the management of its accounts and any act arising from contracts signed with the BCB.

• To constitute and delegate the constitution of guarantees on behalf of the financial entity on cash, fixed income securities and/or any other

• financial document, deposited in its name in the reserve account it maintains at the BCB and any other contract that requires it.

• 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), so that in its name and representation and in its capacity as signatory or signatory of the self-signed digital certificates we issue, generates the digital signature to be used in any electronic document digitally signed in the Integrated Payment Settlement System, issued in the name of (name of the entity).

• For digital certificate exchange:
  The (name of the entity) in its capacity as a participant of the Integrated Payment Settlement System, grants power to (name of the legal representative), so that in its name and representation delivers and receives self-signed digital certificates, as well as signs the respective digital certificate exchange minutes of the Integrated Payment Settlement System.

Furthermore, it should be considered that the power must contain the transcription of the relevant parts of its Statutes or constitutive documents by which the Board of Directors or other administrative bodies of the entity are authorized to confer special powers with powers of asset disposition. Likewise, the minutes or resolutions authorizing the attorney(s) to carry out this mandate or, in their absence, the articles of the financial entity's statute that authorize them to delegate these functions, must be incorporated.

Finally, pursuant to Article 165 of the Commercial Code, the power of the legal representatives for the signing of the aforementioned contract must be inscribed in the Commercial Registry (FUNDEMPRESA).

Sincerely,

[Signature]
WPP/MMS/MMV/RPR/PMS/AADA

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