SGDB No. 030/2015: Requirements for Stockbroker Agencies to Join the Integrated Payment Settlement System (LIP)

EXTERNAL CIRCULAR OF THE CENTRAL BANK OF BOLIVIA La Paz, June 12, 2015 SGDB No. 030/2015

FROM: GENERAL MANAGEMENT FINANCIAL ENTITIES MANAGEMENT TO: STOCKBROKER AGENCIES PARTICIPATING IN THE SECURITIES DEPOSITORY ENTITY (EDV) SUBJECT: REQUIREMENTS FOR THE INCORPORATION OF STOCKBROKER AGENCIES INTO THE INTEGRATED PAYMENT SETTLEMENT SYSTEM (LIP).

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB) communicates that, in compliance with Article 14 of the Regulation of the Integrated Payment Settlement System (LIP) approved by Supreme Decree No. 061/2014 of June 10, 2014, and once the verification of technical requirements has been completed, and considering External Circular SGDB No. 021/2015 dated May 20, 2015, all Stockbroker Agencies participating in the Securities Depository Entity (EDV), supervised by the ASFI, must use the LIP Payment System for the processing of their payment orders; consequently, they must sign the contract for the opening of a settlement account and financial services, which will allow them to become participants in the LIP Payment System.

In this regard, the conclusion of legal and administrative procedures is requested as soon as possible, considering the following schedule:

• From June 15 to 30: Submission of documentation and signing of the "Settlement Account and Financial Services Contract."
• From July 1 to 7: Exchange or presentation of digital certificates and submission of forms for the enablement of network segments and security users.
• From July 8 to 10: Enablement of operations for digital certificates and users with the "Security" profile in the LIP.

To this end, the following legal documentation must be sent via a note addressed to Lic. Carlos Colodro López, Acting General Manager of the BCB:

1. Legalized copy of the Testimony of the Public Deed of Constitution duly registered in the Commercial Registry.

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2. Legalized copy of the Operating License granted by the ASFI.
3. Legalized copy of the entity's Bylaws, duly registered in the Commercial Registry.
4. Legalized copy of the Testimonies of the Powers of Attorney of the legal representatives of the company, duly registered in the Commercial Registry.
5. Legalized copy of the latest registration update issued by the Commercial Registry.
6. Certificate issued by a Stock Exchange legally constituted in the country, accrediting their status as shareholders in accordance with applicable legal norms and their right to participate therein.
7. Sworn declaration by the main executive or legal representative of the company, before a competent authority, stating the truthfulness of the information presented to the BCB.
8. Any other complementary documentation required by the BCB.

Furthermore, for the issuance of powers of legal representation to be sent to the BCB, the following faculties must be expressly considered, without being limited to them:

• 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 Regulation of the LIP Payment System, 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.
• To authorize the BCB to perform debits on financial service accounts, 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 authorize the BCB to perform fund transfers, including automatic credits and debits from their various BCB accounts, in order to implement the aforementioned Regulation, as well as to operationalize the management of their accounts at the BCB.
• To accredit before the BCB the authorized signatures for the management of their accounts and any act arising from contracts signed with the BCB.

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• 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 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 (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 power of attorney must contain the transcription of the relevant parts of its Bylaws or constitutive documents by which the Board of Directors or other administrative bodies of the entity are authorized to confer special powers with faculties to dispose of assets. Likewise, the minutes or resolutions authorizing the attorney(s) to carry out this mandate with faculties to dispose of assets within the framework established in this Circular must be incorporated.

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

Any doubts or inquiries will be attended to by the LIP Help Desk via email at ayudalip@bcb.gob.bo or by phone at 24072062, 2147077, 2661623, 2661645.

Sincerely,

[Signature] MISARL MIRANDA VARGAS FINANCIAL ENTITIES MANAGER CENTRAL BANK OF BOLIVIA

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

CCL/MMV/APM/HMG

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