FLEXIBILIZA INVESTMENTS FROM MUTUAL FUNDS AND INSURANCE COMPANIES, CREATES GENERAL MANAGER OF FUNDS, FACILITATES THE INTERNATIONALIZATION OF BANKING, AND IMPROVES THE LAWS OF PUBLIC LIMITED COMPANIES AND INVESTMENT FUNDS. National Congress has given its approval to the following Bill: Article 1.-Introduces the following modifications to Decree No. 1,019, 1979, of the Ministry of Finance, which fixed the recast, coordinated and systematized text of the decree Law No 1,328 of 1976 on the Administration of Mutual Funds: 1.-Substitute Article 1, " Article 1.-Mutual Fund is the patrimony integrated by contributions of natural and legal persons for their investment in securities of public offering and property that the law permits, which manages an anonymous company for account and risk of the members or contributors, henceforth and for the sole effect of this law, '' the administrator. '' 2.-Amend article 2, in the following sense: (a) Replace the first paragraph, by the following: " Article 2.-The quality of participation is acquired at the moment when the company receives the contribution of the investor, which must be made in cash in national or foreign currency, as laid down in the rules of procedure of the fund; it may also be made with a bank account in the case of a national currency. However, the managing company may accept cheques from banks established in the country in payment of the subscription of shares, but in this case the quality of the participation will be acquired when its value is perceived by the administrator of the (b) Replace the second paragraph with the following: " The contributions will be expressed in quotas of the fund, and there may be different series of quotas. for the same fund, which shall be laid down in the rules of procedure of the respective fund. The shares of a fund, or of the series where appropriate, shall have equal value and characteristics, shall be considered as easy to sell securities for all legal purposes and shall be represented by nominative certificates or by the mechanisms and instruments 3.-Add to the first paragraph of Article 3, the following final sentence, passing the separate point (.) to be followed (.): '' Without prejudice to the above, the administrators may carry out the additional activities authorized by the Superintendence. ' 4.-Substitute the Article 7, for the following: " Article 7.-The administrators, in order to obtain the authorization of their existence, shall check with the Superintendence, a capital paid in cash not less than the equivalent of 10,000 units of promotion. In addition, the administrators must comply with the provisions of Articles 225, 226 and 227 of Law No. 18,045. '' 5.-Intercalase following Article 7, the following Article 71a: '' Article 71a.-The directors and principal executives of the administrator must accredit to the Superintendence, which comply with all the requirements set out in the Article 229 of Law No. 18,045. '' 6.-Amend the final paragraph of Article 11, in the following form: (a) Replace the expression: ` ` the preceding paragraph '' with ` ` the preceding points '', and (b) remove the final sentence: ` ` and the administrator, where appropriate ''. 7. continuation of Article 11, the following Article 11a, new: 'Article 11a.-The administrators may carry out the merger or division of the funds they administer, in accordance with the requirements and procedures laid down in the Regulation.' 8.-Amending Article 12a, in the following form: a) Change the individualization of the '' Article 12a '', by '' Article 12 A '', and b) In the first indent, add the following sentence to the end, passing the point apart (.), to be followed (.): '' This limit will not govern during the first six (a) months after the adoption of the rules of procedure of each fund. '9.-Intercalase following Article 12a, which has become Article 12 A, the following Article 12 B, new:' Article 12 B.-The administrator must inform the true, sufficient and timely form for the members of the funds and the general public on the the characteristics of the funds it administers and any facts or essential information about itself or the funds it administers, in the terms laid down in Article 234 of Law No 18.045. The directors of the administrator shall also be subject to the obligations referred to in Article 236 of Law No 18.045. '' 10.-Replace Article 13, by the following: " Article 13.-Investment of mutual funds shall be subject to the following rules: (1) It shall be carried out in shares of open anonymous companies having a stock exchange and other securities which are listed on the stock exchange; in bonds and other securities or investment securities issued or guaranteed until their total extinction; State, by the Central Bank of Chile or by entities subject to the supervision of the Superintendency of Banks and Financial Institutions; in bonds, short-term debt securities, notes or letters from national issuers, the issue of which has been registered in the Superintendence or in some foreign body of similar competence; in quotas of mutual funds or investment funds made up in Chile or other securities of the public offering and goods authorised by the Superintendency; all without prejudice to the amounts held in cash, in cash or in banks; 2) less, 50% of their investment in securities transactions, in deposits or securities issued or guaranteed until their total extinction by banks or other financial institutions or by the State, in shares of mutual funds, in currencies or in other values to be determined by the Superintendence. Without prejudice to the foregoing number, the fund may invest up to 10% of the value of its total assets, in shares of open anonymous companies which do not comply with the conditions to be considered as a stock exchange, (3) A fund may not invest in shares of mutual funds established in Chile, which are administered by its own company. (ii) the fund may not be used for the purposes of administering the funds; hold 25% or more of the shares issued by the same company. Investment in bonds, short-term debt securities, notes, shares or other securities may not exceed 25% of the total assets of the issuing institution. This limitation shall not apply in the case of securities issued or guaranteed until their total extinction by the State. Without prejudice to the foregoing, the fund's investments may not, under any circumstances, mean direct or indirect control of the respective issuer. For the determination of the percentages, the annual balance sheets or other financial statements which must be submitted to the Superintendence by the issuing companies, updated, in the manner determined by the Regulation, shall be given; may be invested in securities issued or guaranteed by a company directly controlling or through other natural or legal persons, 20% or more of the shares of the respective management company, or in securities issued or guaranteed by companies belonging to a business group which controls at least that percentage. Without prejudice to the foregoing, the fund may invest up to 10% of its assets in representative debt securities guaranteed by the same issuer, as the controller or the business group, where such securities are classified in category A, N-2 or higher than those referred to in Article 88 (2) of Law No 18,045. For the purposes of this number and the number 7) of this article, the definition of the business group contained in the said law will be included. 6. No more than 10% of the value of the fund's asset may be invested in instruments issued or guaranteed by the same institution. This limitation shall not apply in the case of instruments issued or guaranteed until their total extinction by the State. The fund may invest up to 25% of the value of its assets in shares of a foreign investment fund, opened or closed, or in securitization debt securities corresponding to a patrimony of those referred to in Title XVIII of the Law No. 18.045, meeting the requirements to be determined by the Superintendence. 7) The set of investments of a mutual fund in securities issued or guaranteed by entities belonging to the same business group may not exceed 25% of the fund's asset. (8) A mutual fund may acquire instruments classified in or above risk categories B, N-4, as referred to in Article 88 of Law No 18.045. However, funds directed to qualified investors may invest in instruments with a lower risk classification than those identified or in instruments that have not been classified, which should be reported to the investors, in the way that the Superintendence determines. In case the same degree is classified as discordant risk categories, the lowest category must be considered. In the case of foreign issuer securities, the Superintendence shall establish, by standard, the equivalences between the classification which may be made from these overseas securities, and the categories of risk identified in this issue. 9. The fund may invest in securities issued or guaranteed by the State or the Central Bank of a foreign country, or foreign or international banking entities that are transacted in local or international markets; in securities issued by public offering debt and securities transactions issued by foreign corporations or corporations; in shares of funds of foreign capital investment regulated by Law No. 18,657; in other securities of the public offering of foreign issuers authorizing the Superintendence; and in foreign currencies that it also authorizes. The Superintendence may establish by general instructions and with respect to the investments indicated under this number, the conditions of liquidity and information to be met by the markets of the countries in which such investments may be made. investments and the administrative procedures to which they must comply. In any case, the operations of international changes that the fund carries out shall be governed by the provisions contained in the Eighth Paragraph of Title III of Law No. 18,840. (10) The fund may conclude contracts for the future; purchase instruments with a promise to sell; and acquire or dispose of options for purchase or sale on assets, securities and indices, to lend securities and to conclude short selling contracts on these, provided that all of these operations and investments comply with the requirements of the Superintendence by general instructions, in which it will also determine the maximum limits that can be committed in these operations. 11) The fund may invest in Securities Deposit Certificates (CDVs) and foreign securities issued by international bodies referred to in Title XXIV of Law No. 18,045. For the purposes of this number, the rules of the previous No 9 shall apply. The limit set forth in number 4) of this article, in the case of securitization debt securities which is dealt with in Title XVIII of Law No. 18,045, shall apply to each estate separately. If there is a risk of excessive investment due to fluctuations in the market or other causes outside the administration, the Superintendence shall, in each case, establish the conditions and time limits for the regularisation of the investments, without the time limit which it may set may exceed 12 months, counted from the date on which the excess occurs. Where the situation affects more than one mutual fund and is the case referred to in Article 16 (7) of this Law, the Superintendence, on the instructions of a general application, may extend this period. If, as a result of settlements or for reasons other than the administration, in the exclusive judgment of the Superintendence, a mutual fund shall receive in payment goods the investment of which does not comply with the provisions of this article, the administrator communicate this situation to the Superintendence, within the third day of the occurrence of the event, in order to determine whether or not to value them and if so, establish the evaluation procedure. In any event, these goods must be disposed of within 60 days from the date of their acquisition, or in the longer period authorized by the Superintendence for qualified reasons. '' 11.-Amend Article 13a, in the following form: a) Change the individualization of the '' Article 13a '' by '' Article 13 A. ''. b) Replace, in the first paragraph, the expression '' of lower diversification '' by the following: '' directed to qualified investors '' and delete the sentence: '' '', and (c) Derogase the final paragraph. 12.-Intercalase following Article 13a, which has become Article 13 A, the following Article 13 B, new: ' Article 13 B.-The fund may contract obligations up to 20% of the equity of the fund, in order to carry out the (a) investment or operations referred to in Article 13 (10); payment of quota bailouts, and other obligations necessary for the activities of the fund which the Superintendence expressly authorises. ' 13.-Replaced Article 14 by the " Article 14.-If a company manages more than one fund, the investments of the (a) to be administered, as a whole, may not exceed the limits laid down in Article 13 (4). In addition, if two or more administrators belong to the same group of companies, the investments of the funds administered by them, together, may not exceed the limits set out in that number 4. 14.-In the first paragraph of Article 15, the following sentence shall be given: ` ` in the case of investment funds in fixed, variable or mixed income securities. '', by passing the comma (,) to be a separate point (.). 15.-Amend Article 16, in the following form: (a) Intercalase in the second subparagraph, between the word 'cash' and 'within', the following sentence: ` ` in the national or foreign currency which points to the rules of procedure of the fund, ''; the third, fourth, fifth and sixth, new third, fourth, fifth and sixth points, passing the current fourth indent to be the seventh indent: '' However, at the time of the subscription, a maximum period of time may be agreed between the fund and the subscriber. superior to the rescue than the one set out in the previous paragraph. The administrator and the participant may agree that the request for ransom is submitted at a later date than the date of their submission. The fund should offer covenants on the same terms to all unit-holders who carry out subscriptions or bailouts of similar characteristics. In the case of systems for the rescue and payment of quotas representing significant amounts per day of the total assets of the fund, they must be established in the fund's rules of procedure. For these purposes, significant amounts shall be deemed to be determined by the Regulation. Article 2.-The following amendments to the decree with force of law No 251, of 1931, of the Ministry of Finance: 1.-amend article 1 in the following sense: (a) in point (c), replace the term 'of a company' 'with' net of the company '' and add the following final sentence, passing the separate point (.) to be followed: '' Whenever in this law reference is made to the assets of the company, (b) Substitute point (d); (c) Substitute the final subparagraph of point (f), for the following: ' The Superintendence, by means of a general rule, may require the insurance institutions, have a system of market risk assessment of the investment portfolio that considers the maximum probable loss of these. This rule will determine the basic aspects to which the assessment system will be subject, considering the period in which the maximum probable loss may occur, the confidence level of the estimate and the currency in which the loss is calculated. Each type of investment instrument shall be subject to the risk factors that are of its own nature, taking into account the correlations between the different instruments. Any variable that has an impact on the value of an investment, such as interest rate, exchange rate and stock indices, shall be considered as a risk factor. The Superintendence may, by means of a general rule, require an additional risk capital as indicated in this letter, associated with the maximum probable loss already indicated. The additional equity requirement may not be higher than the difference between the risk equity determined as set out in the numbers 1.-and 2.-of this letter and the reduced company's equity in the maximum probable loss. There shall be no additional equity requirement, where the risk equity is lower than the reduced equity at the maximum likely loss. The rule indicated or its amendments shall apply from 120 days of validity and shall apply for a minimum period of one year. The risk assets determined in accordance with this point shall not be lower than the minimum assets and shall be supported by the investments referred to in Article 21. Companies must have a heritage equal to or greater than the risk capital defined in this letter. If not, they shall be subject to the procedure for regularisation provided for in Title IV. ' (d) Subparagraph (g), (h), (i), (j) and (k). 2.-Substitute Article 3 (e) by the following: " (e) Keep available to the public, models of general policy conditions and clauses that are contracted on the market. Insurance institutions may contract with such models from the sixth day they have been incorporated into the Policy Deposit which, for those purposes, will lead to the Superintendence. The insurance companies of the first group, in the case of transport and air transport insurance, as well as in the insurance contracts in which both the insured and the beneficiary are legal persons and the amount of the premium the annual rate is not less than 200 promotion units, they will not have the obligation indicated in the preceding paragraph, and they will be able to contract with models not deposited in the Superintendence, owing the respective policy to be signed by the contractors. It will be the responsibility of the companies that the insurance policies that they hire, are written in a clear and understandable way, that they are not inductive to error and that they do not contain clauses that oppose the law. In case of doubt as to the meaning of a provision in the model of general condition of policy or clause, the most favourable interpretation shall prevail for the contractor, insured or beneficiary of the insurance, as the case may be. The Superintendence shall, by means of general application, lay down the minimum requirements to be contained in the policies. The Superintendence may prohibit the use of a model of a policy or clause where, in its opinion, its text does not comply with the requirements of legality and clarity in its wording, or with the minimum requirements set out above; ' 3.-Amend Article 4 in the following sense: (a) Substitute the first subparagraph, as follows: '' Article 4.-Trade in the provision of premiums for the purposes of premiums shall be made only in Chile by public limited liability insurance and reinsurance companies, which have the sole purpose of developing such a rotation and activities which are related or complementary to it, which authorises the Superintendence by means of a general rule. The insurance institutions of the second group may constitute subsidiaries General of Funds, as referred to in Title XXVII of Law No 18.045, subject to the general rules established by the Superintendence. '' b) Second, following the separate point (.) which is to be followed, the following sentence: "Insurance and reinsurance entities may also subscribe to risks from abroad." (c) Add the following final indent, New: " In addition, insurance and reinsurance companies will be able to take on the risk of loss of assets which, in the case of benefits under the laws Nºs 16,744, 18.469, 18.833 and 18.933, bear the benefit of the benefits they provide. ' 4.-Add, in Article 15, the following final point: " The value reserve of the fund, indicated in No. 6. Article 20 shall be subject to a total debt limit equal to seven times the limit referred to in the first subparagraph. '5.-Substitute Article 16 for the following:' Article 16.-Reinsurance of contracts concluded in Chile, (a) National public limited companies whose sole purpose is reinsurance, may be carried out by insurance and reinsurance undertakings, with the following entities: (a) These entities will be subject to the supervision of the Superintendence, with the privileges granted to it by law. National reinsurers may operate in both insurance groups, provided that they constitute separate capital for each of them and bear accounts which are absolutely separate for the operations of the insurance groups in order to comply with the requirements for equity, indebtedness and investment of technical and equity reserves in each group. These institutions shall maintain a minimum equity of not less than 120,000 units of promotion for each of the groups in which they operate. If, during its operation, the assets are reduced to a lower amount, the entity shall be obliged to complete it in accordance with the provisions of Paragraph 1 of Title IV of this Law. If you do not do so, you will be revoked. In the event that one of the groups presents problems that require the regularisation established in Articles 65 or 68 of this law, it must be carried out and, if not possible, the Superintendence will revoke the authorization. in respect of the group concerned. (b) National insurance companies, which may only secure risks from the group in which they are authorised to operate, and (c) foreign reinsurance entities, which are classified by risk classification agencies, of recognized international prestige in the judgment of the Superintendence, in at least category of risk BBB or its equivalent. These entities will have to appoint a representative in Chile, who will represent them with wide powers, and can even be called in. Notwithstanding the foregoing, the designation of a representative shall not be required if the reinsurance is carried out through a reinsurance broker entered in the Superintendence, in accordance with the provisions of the following subparagraph, which, for all legal effects, in particular in relation to the implementation and enforcement in the country of the reinsurance contract, shall be considered as the legal representative of the external reinsurers of the reinsurance contract, with broad powers, can even be called in judgment. The reinsurance shall be carried out with the entities referred to above, directly or through reinsurance brokers that are registered in the Foreign Reinsurance Broker Registry which shall take the Superintendence. For these purposes, they must meet the following requirements: 1) Not to be registered in the Superintendency Insurance Brokers Register; 2) Credit the hiring of a guarantee insurance policy of the correct and complete compliance of all the obligations arising out of its reinsurance broker activity in Chile and, in particular, for damages due to errors or omissions that may cause those who contract through its intermediary, which must remain in force until the extinction of its obligations as a broker. The insured amount of this policy should not be less than the highest sum between 20,000 units of promotion and one third of the premium intermediate in Chile in the year immediately before. Prior approval of the Superintendence will be necessary when the issuer of the policy is a company not established in Chile. Verified the non-compliance or injury, the policy will be sinister and the affected corridor will not be able to mediate new contracts until the satisfaction of the Superintendence, in the event that it has been stipulated in it that the payment of (iii) Treating foreign brokers, being a legal person, and proving that the entity is legally constituted in its country of origin and that it can mediate risks transferred from abroad, with an indication of the date from which it is authorized to operate. In this case, for the registration these entities will have to appoint a representative in Chile, who will represent them with wide faculties, being able to even be placed in judgment. The representative must have residence in Chile. In the case where the reinsurance brokers cease to comply with any of the above requirements, they shall be removed from the relevant register. The Superintendence, as a general rule, shall determine the form, time and frequency with which all the requirements laid down in this Article and the rules applied in the case of a reinsurer, of the referred to in point (c) of this Article, no longer meet the required risk classification requirement. For the purposes of this law, the insurance market Lloyd's of London shall be regarded as a reinsurer entity. ''. 6.-Repeal Article 16a. 7.-Add to Article 17, the following points second and third, new: " In addition, it will be the obligation of the Directory of the companies to inform the Superintendence, in the form and periodicity that it determines by norm of general character (a) Investment; (b) Use of derivatives and management of financial risks; and (c) Internal control. The directory must inform the annual financial statements, the policies defined and an analysis of the degree of compliance with them. "8.-Substitute Article 20 for the following:" Article 20.-The insurance companies and reinsurers established in the country, in order to comply with the obligations arising from the procurement of insurance and reinsurance, shall constitute technical reserves, in accordance with the actuarial principles, procedures, mortality tables, interest rates and other technical parameters which, as a general rule, establish the Superintendence. Your modification or replacement must be communicated to the companies 120 days in advance, at least. Technical reserves shall be classified in the following types: 1. Risk reserve in progress for the obligations of a company with the insured, originated by premiums for short-term insurance contracts; 2. Mathematical reserve for the obligations of a second group company with the insured, In the case of claims arising from long-term insurance contracts, 3. Reserve claims for claims which have occurred and which are pending payment, and for those which have occurred and not been reported; 4. Additional reserve for those risks It is not known, it is highly fluctuating, cyclical or catastrophic and, in the opinion of Superintendence, by means of general rules, it is necessary to constitute for the normal development of the insurance or reinsurer activity; 5. Reserve of barefoot, due to the risks originated in the period of the term, interest rate, currency and investment instruments, between the assets and liabilities of the company, and 6. Reserve of the value of the fund, in the part corresponding to the obligations generated by the investment accounts in the insurance of the second group that cover them. The Superintendence, without prejudice to the fulfilment of the requirements laid down in Article 16, by general rule, shall lay down the minimum requirements and requirements to which the reinsurance disposals shall be subject to, effects of being deducted from the calculation of technical reserves. In any event, a company may only deduct from the above reserves, the premium actually paid to its reinsurer, by the disposals corresponding to the risks assumed. Notwithstanding the foregoing, in the case of insurance referred to in Decree Law No 3,500 of 1980, and in the case of reinsurance transfers to foreign reinsurers, the reinsurance deduction may not exceed 40% of the total of the technical reserves corresponding to the insurance indicated or the higher percentage established by the Superintendence. '' 9 .-Amend Article 20a, in the following sense: (a) In the third subparagraph, replace the expression 'A, B, C, D and E' by 'AAA, AA, A, BBB, BB, B, C, D and E'. (b) In the fourth indent, replace the letter 'A' with 'AAA' '. 10. Article 21 for the following: " Article 21. The technical reserves and the risk assets of insurance and reinsurance undertakings, without prejudice to deposits which are kept in the current account, shall be supported by investments made in the following instruments and Assets: 1. Investments of Fixed Income: (a) Titles issued or guaranteed until their total extinction by the State or issued by the Central Bank of Chile; (b) Term deposits, mortgage credit letters, bonds and other debt or credit securities issued by banks and institutions (c) Bonds, promissory notes and other debt or credit securities issued by public or private undertakings; (d) Participation in credit agreements in which two or more banks or financial institutions are involved, in accordance with the rules of character General rule that the Superintendence is dictated, the risk of the debtor's credit being contemplated, and Mutual mortgage securities, of those mentioned in Title V of this law. 2. Investments of Variable Income: (a) Shares of public limited liability companies and shares of public infrastructure works concessionaires; (b) Quota of mutual funds whose assets are invested in securities or assets (c) quotas of investment funds, the assets of which are invested in national securities or assets. 3. Investments abroad: (a) Titles of debt or credit, issued or guaranteed up to their total extinction by foreign central banks; (b) Deposits, bonds, notes and other debt or debt securities issued by financial institutions, corporations or corporations (c) Shares of companies or corporations formed outside the country; (d) quotas of mutual funds or investment funds made out of the country; (e) quotas of mutual funds or investment funds made up of the country, the assets of which are invested in foreign securities, and (f) non-residential real estate located in the outside. The instruments mentioned in this number may be acquired directly or through Certificates of Deposit of Securities (CDV), as referred to in Title XXIV of Law No. 18,045. The Superintendence, after consultation, to the Central Bank of Chile, by means of a general rule to be published in the Official Journal, shall establish the characteristics, rules and procedures to which the investments indicated in the this number, to be representative of technical reserves and risk assets. The acquisition of the foreign currency necessary to make the investments, referred to in this letter, and its remittance abroad, as well as the return and liquidation of the capital and profits and their conversion to national or foreign currency, shall be subject to the rules established by the Central Bank, according to the powers conferred on it by its Organic Law. The Bank shall, by agreement of its Council, establish annually the maximum possible percentages to invest within the limits laid down in paragraph 1 (g). Article 23 of this Law. However, the maximum percentage of foreign investment established by the Central Bank may not be less than ten percent of the companies ' technical reserves and risk assets. The investments in point (f) of this number shall be counted only as representative investments of technical reserves generated by operations carried out by the relevant office in the respective country. 4. Non-residential real estate, whose commercial value is practiced at least every two years, according to the general rule that the Superintendence dictates. In the case of real estate owned by the company, subject to lease agreements with option to purchase, the Superintendence will establish the minimum requirements to be met by such contracts, so that the root good is considered as representative investment. 5. Other Assets: (a) Credit not due for non-accrual premiums granted to policyholders, from insurance contracts with a non-payment of premium resolution clause, to support the total of the current risk reserve and up to 10% of the equity (b) Non-expired claims, the proceeds of the transfers made to the reinsurers, to support the total of the reserve of claims and up to 10% of the risk capital, except for the insurance companies of the first group; those claims arising from the disposals referred to in Article 20, which cannot be discounted from the (c) Non-expired credit for premiums on the basis of invalidity insurance and the survival of decree law No 3,500 of 1980 to support the total of the reserve of claims for the companies of the second (d) Advance to holders of their life insurance policies, up to the amount of the ransom value of them, provided that such policies expressly indicate that the loan may be deducted from the amount of the compensation payable under the set on the policy or its additional, if applicable. In addition, the accepting companies may support their technical reserves with: (e) non-accrual credit not due to the non-accrual companies of the first group under reinsurance contracts, to support up to the total of the (f) Non-expired credit claims on the basis of reinsurance contracts, to support up to the total of the claims reserves, and (f) non-expired credit claims on the basis of reinsurance contracts. 6. Financial derivative products, in accordance with the limits and conditions established by the Superintendence, as a general rule. The maximum investment limit to be fixed by the Superintendency may not be less than 0,5% and not more than 3% of the technical reserves and risk assets of the companies, the investments indicated above, in order to be representative of Technical reserves and risk assets shall comply with the following requirements: 1. The instruments referred to in point (b) of No 1 shall be classified in accordance with the provisions of Law No 18.045 in at least the risk category BBB or N-3, as appropriate for long or short term instruments, respectively; (a) and (c) of the Nº2 and the investment fund shares in point (e) of Nº 3 shall be entered in the Register of Securities of this Superintendence, in accordance with the laws Nºs. 18.045 and 18.815, as appropriate; 3. The instruments referred to in point (a) of No 2 shall not be accepted as representative, in the case of shares of companies managing pension funds or mutual funds, pension institutions, insurance companies and reinsurers, educational companies and those whose object is the provision of benefits of a character (a) to its shareholders, or companies whose assets, by more than 50%, are constituted by shares and rights in entities of the newly described types; and 4. The instruments of points (a) and (b) of the Nº3 shall be classified by at least two qualified entities of international prestige in the judgment of the Superintendence. Companies may carry out operations for the coverage of the financial risk which may affect their investment portfolio and their asset and liability structure, in the form of a general rule issued by the Superintendence. They may also participate in short-selling operations, by means of the loan of shares that are representative of technical reserves and risk assets, as indicated in this article, in the form determined by the Superintendence. Notwithstanding the foregoing, only representative shares of technical reserves may be provided in these transactions up to a maximum of 10% of the total portfolio of representative shares of the company. 11.-Rule 21a. 12.-Substitute the second paragraph of Article 22, for the following: " However, the above, by means of general rules, may be excepted from the prohibition set out in the preceding paragraph, to the real estate mentioned in Nº4. of Article 21, and to instruments granted as collateral or margin of risk hedging operations as referred to in the penultimate point of the same Article. '. 13. Replace Article 23 by the following: ' Article 23. Investment in the different types of instruments or assets representing technical reserves and risk assets, as referred to in Article 21, shall be subject to the following ceilings: 1. Limits per Instrument. (a) 5% of the total, for the sum of the investment in the instruments of point (c) of No 1, that are not registered in the Superintendence Registry, or that are registered, do not have a risk classification according to the law No 18.045, or this is lower than BBB or N-3, as appropriate. Except for this limit, those instruments issued by domestic companies outside the country, which have an international risk classification equal to or greater than BBB; (b) between 3% and 5% of the total, as established by the Superintendence by general rule, for the sum of the investment in the instruments referred to in point (d) of Nº 1; (c) 30% of the total, in those instruments of point (e) of No 1, for companies in the second group, and 30% only the risk capital, for (d) 40% of the total for the sum of the investment in instruments of Nº2; (e) 5% of the total, and n those instruments of Nº2 (a), which do not satisfy the requirement of a stock market presence which, by general rule, establishes the Superintendence; (f) 10% of the total, in those investment funds of Nº2; (g) 20% of the total, for the sum of the investment in those instruments of Nº3; h) 5% of the total, for the sum of the investment in the instruments of points (a) and (b) of the Nº3, which present international risk classification, lower than BBB or N-3, or their (i) 10 °% of the total, for the sum of the total, for the sum of the investment in instruments under points (c), (d) and (e) of the Nº3; (j) 3% of the total in those assets of Nº3 (f), and (k) 20% of the total, in those assets of Nº4, for companies in the second group, and 30% of the risk equity only, for companies from the first group. For the purposes of the limits of subparagraphs (g) and (i) above, the reservation of Article 20 (6) and its corresponding investment shall not be taken into account. 2. Joint limits. (a) 25% of the total, for the sum of the investment in those instruments referred to in points (b) and (c) of Nº1, which present a risk classification equal to or less than BBB or N-3, as appropriate for long and short-term instruments, or which, in the Case of instruments of point (c) of No 1, do not present a risk classification; (b) between 10% and 20% of the total, as established by the Superintendence as a general rule, for the sum of the investment in the instruments included in the points (b), (c) and (d) of No 1, and (a) of Nº2, issued by public limited companies, banks, institutions financial and business belonging to the same business group. This limit shall be reduced by half, if the investment company is part of the business group; (c) 10% of the total, for the sum of the investment in the instruments referred to in points (b), (c) and (d) of Nº1 and (a) of Nº2, issued or guaranteed by a single entity or its subsidiaries. This limit shall be reduced by half, if the investment company is part of the business group to which the issuer belongs; (d) 40% of the total, for the sum of the investment in instruments of (e) of No 1, investment funds of point (c) No 2, as soon as they invest in assets indicated in the numbers 10, 11, 12, 13 and 15 of the article 5 of Law No 18.815, real estate of Nº4, and bonds or notes of letter c) of the Nºl, issued by securitizing companies of those mentioned in the Title XVIII of Law No 18.045, which are backed by transferable credit securities, related to the sector real estate, for companies of the second group, and 50% of the risk-off assets only, for companies of the first group; (e) 5% of the total, for the sum of the investment in the instruments included, in points (b) and (c) of the Nº3, issued or guaranteed by a single entity. This limit shall be reduced by half, where the issuer is a person related to the company, and (f) 10% of the total, for the sum of the investment in funds referred to in points (b) and (c) of Nº2 and (e) of Nº3, managed by a single entity '. 14.-Substitute Article 24 by the following:' Article 24.-Without prejudice to the provisions of the foregoing Article, the Superintendence may, by means of a general rule, set limits of diversification by issue, to investments supporting technical reserves and the equity of risk referred to in Article 21, having regard to the following ranges: (a) between 10% and 20% of the total deposits and captions and the total number of mortgage bills issued by a bank or financial institution, in the case of the instruments referred to in point (b) of the Nº1; (b) between 20% and 30% of the issue or series, in the the case of instruments referred to in point (c) of No 1; (c) between 10 and 20% of the holding, in the case of instruments referred to in point (d) of No 1; (d) between 8% and 20% of the total shares subscribed, in the case of instruments referred to in paragraph 2 (a); and between 20% and 30% of the total number of shares subscribed to a mutual fund or investment fund, as referred to in points (b) and (c) of Nº2 and (d) and (e) of Nº3. The Superintendence shall fix the limits indicated for minimum periods of one year, and shall inform the amendment thereof, three months in advance of its validity. ' 15.-Amend Article 24a, in the following manner: (a) Replace the Article 24a.-If a representative investment of technical reserves or risk assets or a set of reserves exceeds one of the limits of diversification established in this law, the excess shall not be accepted as a support for those reserves or the risk-off assets. Nor will those investments be accepted which will cease to comply with the requirements set out in this law to be representative of technical reserves. However, if such a fact is solely caused by a change in risk classification, the investments concerned may continue to support technical reserves and risk assets for a period not exceeding six months from the date of the change. However, 50% of them will be able to continue to serve as back-up for an additional period of six months. If new instruments are acquired during that period, the company will not be able to use them to support its technical reserves and risk assets. 16.-Article 25, the following Article 26, new: " Article 26.-The insurance policy may be either nominative or order. The assignment of the nominee policy, or of the rights that emanate from it, requires the acceptance of the insurer and that of the policy to the order can be made by simple endorsement, without prejudice to article 518 of the Code of Commerce. The credit of the insured person, for the compensation of an accident which has already occurred, may be transferred, in accordance with the general rules on the transfer of appropriations. The insurer may oppose the transferee or the tenderer, the exceptions it has against the taker, insured or beneficiary. '17.-Amend Article 27 as follows: (a) In the second indent, interleave between the words' above ' and 'The following shall be required': ', and the merger and division of insurance institutions', and (b) In the third subparagraph, replace the word 'consult' with 'communicate'. 18.-Derogase the third indent of Article 30. 19.-Incorporate, following Article 35, the following Article 36, new: " Article 36.-If under the law, the hiring of insurance is mandatory or a requirement for the exercise of an activity, the insured or the beneficiary, according to It may be appropriate for the resolution of the difficulties arising with the insurance company to be brought before the ordinary courts, however, the policy would have included a compromise or an arbitration clause. If the insured person and the beneficiary are legal persons and the amount of the annual premium is greater than 200 units of promotion, the commitment or arbitration clause shall extend the jurisdiction. ' 20.-Incorporate, following Article 36 The following article 37, new: " Article 37.-Those interested in the constitution of an insurance institution, in order to obtain the authorization provided for in Article 126 of Law No 18.046, shall: (a) inform the identity of the shareholders and their controllers, provided that they hold a stake equal to or greater than 10% of the capital or have the capacity to elect at least one board member; drivers are not in some of the situations referred to in points (a), (b) and (c) of Article 44a of this Law, and (c) Credit that their shareholders and their controllers have a consolidated net worth at least equal to the contribution. The Superintendence may refuse authorization by way of resolution, when the above requirements are not met and the others required by law. '' 21.-Incorporate, following Article 37, the following article 38, new: '' Article 38.-By requiring the national interest, once the existence of the insurance institution is authorized, the insurer must inform the Superintendence of any change of ownership that involves a shareholder having an equal or equal share more than 10% of the capital and the shareholder must prove the requirements set out in the points (a) and (b) of the first subparagraph of the previous Article. Before accrediting to the Superintendence the indicated requirements, the shareholder may not exercise the right to vote for such actions. '' 22.-Incorporate, following Article 38, the following article 39, new: '' Article 39. Superintendence shall have a period of 30 days, counted from the date of filing of an application for registration or authorization and the respective antecedents to rule on them. This period shall be suspended if the Superintendence by written communication, requests additional information from the petitioner or requests him to modify the request or to rectify his/her antecedents for not complying with the laws, regulations or administrative procedures, resuming only when such a procedure has been completed. The defects or the observations made in their case are remedied, and the deadline referred to in the preceding paragraph shall be expired, and the Superintendence shall take a course as requested, as appropriate. However, after 60 days from the filing of the application, the petitioner may request that the application be resolved with the background of the Superintendence. In such circumstances, the Superintendence within 5 working days counted from the request referred to, will resolve to approve or reject the request, in est and last case by resolution founded. If the application is not delivered within that period, the application shall be deemed to have been rejected. ' 23.-Rule 41. 24.-Incorporate, following Article 47, the following Article 48, new: " Article 48.-The penalties for fines of 20 to 200 monthly tax units, those that act as insurance brokers, reinsurance brokers, agents of sales, serviceable agents of endurable mortgage mutual and insurance liquidators, without being registered in the Records required by this law or whose registration has been suspended, eliminated or revoked, and those who knowingly provide them with the means to do so. ' 25.-Substitute the first paragraph of Article 53 by the " Article 53.-The classifications referred to in Articles 21 and 23, in the case of investments in the country, shall be made by two risk-qualifying entities, in the form provided for in Law No 18.045. For the purposes of applying the rules laid down in those Articles, the least of the classifications obtained must be considered, unless the Superintendence, by means of a general rule, establishes a different procedure. taking into account the number of discordant classifications, the previous classifications and others which it determines for the purposes of the diversification of the investments of the companies. ' 26.-Rule 55. 27.-Amend Article 57 in the following sense: (a) Add in the second subparagraph, following the separate point (.) which becomes a comma (,) the following: '' with the exception of the sales agents of companies which, as referred to in Article 11 of this Act, cover credit risks, which may, in turn, provide services in an insurance institution of the first group which is not entitled to cover these risks. '(b) Add, following the seventh indent, the following eighth and ninth points:' Insurance companies may be entitled to: offer, quote and agree insurance contracts, using the continuous auction mechanisms of the entities authorised by the Superintendence and which shall be governed by the rules laid down by the Superintendence. The use of continuous public auction mechanisms does not exclude the participation, nor the liability of insurance trade auxiliaries, in the advice and intermediation of insurance. '' 28.-Amend article 58 in the following meaning: (a) Intercalase in point (c), between the words 'form' and '' which '', the expression '' and periodicity ''. (b) Substitute in (d), the expression '' credit '' for '' constituting a guarantee, by bank ballot or '' and the expression '' sum to (c) Replace in point (e), the term 'policy' by 'guarantee'. 29.-Add to Article 61, the following new final indent: '' In the exercise of its functions, and without prejudice to its legal obligations and (a) the claims liquidators shall be required to retain due independence and autonomy in its role, ensuring the impartiality and objectivity of the winding-up process, and ensure that its views are issued with strict technical criteria. ' 30.-Amend Article 62 as follows: (a) Interact in point (a) between the words 'form' and '' what '' the expression 'and periodicity', and (b) Substitute in point (b), the expression '' Credit '' by '' Constituir a guarantee, by bank ballot or ''. 31.-Amend Article 64 in the following sense: (a) in point (b), replace the word ` ` perceiving '', as follows: ` ` To provide services or to assume with the companies responsibilities other than those mentioned in this law and the regulation, and to perceive ''; b) (c) New claims for claims in which the liquidator has a direct or indirect current interest. '(c) Add, following point (c), above, the following point (d), new:' (d) Assume the liquidator natural person, administrators, legal representatives, proxies or their employees, the judicial representation of the companies, in judgments followed by the insured persons against them. '' 32.-Amend the first paragraph of Article 66, in the following sense: (a) Replace the expression '' eighty working days '' for '' forty days (b) Substitute the expression 'before the thirty working days following the first publication of the summons' 'by' within the time limits referred to in Law No 18.046 '. 33.-Amend the first paragraph of Article 69, in the following sense: (a) Replace the expression '' sixty days '' for '' 40 days ''. (b) Replace the expression '' 120 days '' for '' 80 days ''. (c) Replace the expression '' 15 days '' for '' 10 days ''. 34.-Amend the first paragraph of Article 70 in the following sense: (a) Replace the expression '120 days' 'for' 80 days ''. (b) Replace the expression '40 days' 'for' 20 days ''. 35.-Amend the first paragraph of Article 71, in the Next point: (a) Substitute the expression '40 days' 'for' 20 days ''. (b) Replace the expression '60 days' 'for' 40 days ''. 36.-Substitute, in the first indent of Article 74, the word 'consultation' by 'communication'. 37.-Attaché, in Article 82, from the end point (.), which becomes a comma (,), the following: '' and the insured may put an early term to the contract in which the risks are pending, in which case they shall be entitled to the proportional return of the premium in the contest. '' 38.-Introduction, following Article 87, the following Title V, new: ' TITLE V of the Article 88.-The insurance institutions may acquire endurable mortgage securities, granted by administrators who meet the conditions and conditions set by the Superintendence, in a general rule, and which are registered in a special register to be registered by that body. Such agents shall be the responsibility of the mutual self-employed or of the insurance institutions, the valuation of the property, the classification of the solvency of the debtor and the other obligations laid down by that general rule. Banks and financial corporations may act as agents without registration. The minimum requirements to be met by the administrators of the endotable mortgage mutual-owners, for their registration and permanence in the aforementioned registry, are as follows: (a) To be legally constituted in Chile as public limited companies, with the specific object of granting and administering endurable mortgage mutual funds. (b) Credit a minimum capital equivalent to 10,000 units of promotion. (c) Credit the hiring of an insurance policy, in order to respond to the correct and complete compliance with the obligations arising out of its activity, in the amount of not less than 20,000 units of promotion, under the conditions established by the Superintendence. (d) Its majority shareholders, in the understanding of those who have a participation equal to or greater than 10% of the total shares subscribed, directors, administrators and legal representatives, must have an inintelligible commercial background and do not register the skills referred to in points (a), (b) and (c) of Article 44a of this Law. Article 89.-The Superintendence shall establish the maximum limits of indebtedness, to which the agents of the mortgage mutual-benefit agents must conform, which shall not be less than five times, and not more than ten times, their assets. These borrowing limits shall be fixed for periods of not less than two years, and their modification shall be reported at least six months in advance. Article 90. The mutual funds shall be granted to natural or legal persons for the purposes of acquisition, construction, extension or repair of all types of real estate; to refinance the endurable mortgage mutual funds of which this Title is treated; or prepay mortgage loans granted for the purposes of the above, according to Titles VIII and XIII, of the General Law of Banks, and those granted for the same purposes, in accordance with Law No 16,807. Insurance companies may also acquire endurable mortgage securities, as referred to in Article 69 (7) of the General Law of Banks, and endurable mortgage securities issued in accordance with Law No 16,807 or other laws, provided that the that the investment complies with the purposes, modalities and limitations of this Title. Mutual grants may be granted up to the value of the value of the property given as a mortgage. Notwithstanding the foregoing, they shall only be considered for the purpose of supporting technical reserves and risk assets, as appropriate, mortgage mutual funds the amount of which does not exceed 80% of the valuation value indicated, except as soon as there are insurance to ensure that the amount exceeding that percentage is paid and that it meets the conditions laid down by the Superintendence. The mutual benefit must be secured by first mortgage, consisting of either the root or the second-degree mortgage, provided that the first mortgage has been established to guarantee a perfectly determined obligation and that, In addition to the amount of the mutual benefit of the second mortgage, do not exceed the 80% limit. Article 91.-The endurable mortgage securities must be extended in a public deed that carries a clause to the order, of which a single authorized copy will be granted, which will be delivered to the creditor, and will be transferable by endorsement placed to continuation, on the margin or on the back of the document, indicating the name of the transferee. For exclusive purposes of information, the transfer must be entered in the margin of the mortgage registration . The transferor will only respond to the existence of the credit. Article 92.-The Superintendence may authorise, by means of general rule, the insurance institutions to support technical reserves and risk assets with endurable mortgage securities for purposes other than those mentioned in the article 90. '' Article 3.-Enter the following amendments to Law No 18.045: 1.-Replace point (h), of Article 162, by the following: " (h) the acquisition or disposal of goods on behalf of the fund in which it acts as a transferor or acquirer the administrator or a private fund, of those of Title VII of Law No 18,815, under his administration or of a related company. Also, the acquisition or disposal of assets on behalf of the fund to persons related to the administrator or to funds managed by it or related companies, unless it is carried out in formal markets, in accordance with the requirements and conditions established by the Superintendence, by means of a general rule, and ''. 2.-Attaché, following Article 219, the following Title XXVII, new: "TITLE XXVII of the General Administration of Funds" Article 220.-The term "General Administration of Funds" shall be understood as those special limited liability companies which are constituted for the administration of mutual funds governed by Decree Law No. 1,328 of 1976, investment funds governed by Law No. 18,815, foreign capital investment funds governed by the law No. 18,657, housing funds governed by Law No. 19.281 and any other type of fund whose oversight is entrusted to the Superintendence. These managers will be able to manage one or more types or species of funds referred to in this article, and to carry out other complementary activities authorized by the Superintendence. '' Article 221.-The administration of the funds shall be made in the name of each of them, for the account and risk of their contributions or holders of the quotas or accounts where appropriate, in accordance with the characteristics of each of them, established in the special rules governing them. Article 222.-The administrators shall be entitled to be remunerated by the administration of each fund, in accordance with the special law governing the fund in question. Article 223.-The administrators shall be subject to the following special rules: (a) They are formed, exist and prove in accordance with the provisions of Article 126 of Law 18,046, with the application of Articles 127, 128 and 129 of the same law; b) His name must contain the phrase " General Administrator of Funds '', it is not necessary to include in it the allusion to each type of fund administered; c) They will have as exclusive object the activities referred to in article 220 of this law; d) Its audit will correspond to the Superintendence, which exercise this function with the privileges and powers granted to it by its Organic Law, as well as with the the same powers and powers as it is vested in to scrutinise and sanction open public limited liability companies, insurance companies and companies which administer exclusively one of the types of the funds of their object; and the provisions of this law, of Law No. 18,046 and the special laws of each of the funds that they administer, as well as those provisions contained in the regulations of the corresponding laws, shall apply. In addition, they shall be governed by the rules laid down in the internal regulations and administrative contracts of each fund which they administer, as appropriate, and by the instructions which the Superintendence dictates. The use of the term "General Manager of Funds" is reserved for those companies that have the exclusive object of the activities referred to in Article 220 of this Law. Consequently, no natural or legal person who has not been constituted in accordance with the provisions of this Title, as a General Manager of Funds, may assume the quality of such, or use this name in his social reason. Article 224.-Responsibility for the function of administration is inselectable, without prejudice to the fact that the administrators may confer special powers or conclude contracts for external services for the execution of certain acts, business or activities necessary for the performance of the rotation. In the case of the contracting of external services, in the rules of procedure or in the contract of administration of the fund, as appropriate, it shall clearly state the authority of the administrator to carry out such contracts. It shall also be noted in the rules of procedure or in the administrative contract, where appropriate, if the expenditure arising from the hiring out shall be the responsibility of the administrator or the fund concerned and, in the latter case, the form and the policy distribution of such expenditure. Article 225.-The administrators, in order to obtain the authorization of their existence, shall check with the Superintendence a paid capital, in cash, not less than the equivalent of 10,000 units of promotion. At all times, these companies must maintain an equity, at least equivalent to that indicated in the preceding paragraph. However, if for any cause there is a loss or variation that will affect the fulfillment of the above mentioned patrimonial requirement, the administrator must report this fact to the Superintendence within 2 working days The following shall be produced by the Commission, and shall be required to restore the deficits produced within the time limit set by the Superintendence, which shall not exceed 90 days, unless the Superintendence extends this period for up to another 90 days. The assets of the administrative authorities shall be determined in the form established by the Superintendence, by means of a general rule. Article 226.-The directors must provide a guarantee to the fund to ensure compliance with their obligations for the administration of third-party funds, prior to the operation of each fund they administer and up to their total extinction. This guarantee will be for an initial amount of 10,000 units of promotion, and can be constituted in cash, bank or insurance policy, in the form and conditions established by the Superintendence, by means of general rule. Without prejudice to the foregoing, the amount of the guarantee shall be updated annually, for each fund, in such a way that the amount is always equivalent, at least, to the amount indicated in the preceding paragraph or 1% of the average daily equity of the fund in the calendar year preceding the date of its update, if the latter result is higher. Article 227.-The administrative authorities shall appoint a bank as the representative of the beneficiaries of the security referred to in the previous Article, who shall, in this respect, only carry out the following tasks: (a) If the guarantee is in deposits of money, the delivery of the money will be made to the representative of the beneficiaries. (b) If the guarantee consists of a bank or insurance policy, the representative of the beneficiaries shall be the holder of the supporting documents. The bank or insurance company shall pay the value required by such representative at his or her sole requirement and up to his guaranteed amount. By way of derogation from the foregoing point (b) and without it being necessary to accredit to the granting entities, the representative of the beneficiaries of the guarantee ballots, in order to make them effective, shall be notified judicially of the fact of the have filed a complaint against the captive manager. The money from the holding of the bank ticket will be made in full law to replace that guarantee, remaining in readjustable deposits by the representative until the obligation to maintain the guarantee ceases. Article 228.-The Superintendence shall have a period of 30 days, counted from the date of filing of the application and the respective antecedents to rule on them. This period shall be suspended if the Superintendence, by means of written communication, requests additional information from the petitioner or requests him to modify the request or to rectify his/her antecedents for failure to comply with the laws, regulations and regulations. or administrative procedures, resuming only when such a procedure has been completed. Under the defects or in the light of the observations made in their case, and the time limit referred to in the preceding paragraph is expired, the Superintendence shall adopt the rules of procedure or the texts of the contracts, as appropriate. However, after 60 days from the filing of the application, the petitioner may request that the application be resolved with the background of the Superintendence. In such circumstances, the Superintendence within 5 working days counted from the request referred to, will resolve to approve or reject the application, in the latter case by resolution founded. If it is not delivered within this period, the application shall be deemed to be rejected. Article 229.-The directors and principal executives of the administrator shall comply with the following requirements: (a) Be older; (b) Have approved the fourth year or provide equivalent studies; (c) Not be subject to a process or not they have been convicted of the offences set out in this law or who deserve a penalty, and (d) have not been declared bankrupt or have not concluded judicial or extrajudicial agreements with their creditors. The Superintendence, as a rule of general character, will establish the means and form in the persons concerned must prove the circumstances listed in this Article and the background to which they must accompany them. Article 230.-The administrators shall accredit to the Superintendence, prior to the commencement of their duties, the faithful fulfillment of all the formalities that for its constitution establishes this Title and must have approved a general regulation of funds; the rules of procedure for each fund and, where appropriate, the contract of administration of at least one fund, in conjunction with the subscription contract and the facsimile title thereof, where appropriate. The general fund rules shall at least contain rules on the form and percentage of the apportionment of the administrative costs between the various funds; the form and proportion in which the investment overruns indicated are to be settled. Article 232 of this Law; the way in which conflicts may be resolved which may arise between funds of different nature, their members or the administration thereof; the special benefits of the unit-holders in relation to the to the rescue of quotas and their immediate contribution to another fund administered by the same administrator and any other mention to be determined. In order to start the administration of a new fund, the Superintendence must approve the rules of procedure of the new fund, the text of the subscription of quotas, the facsimile of the title of quotas or the contract of administration, depending on the type of fund in question, in accordance with the provisions contained in each of the laws and regulations governing them. Article 231.-The accounts and records of the operations of the administrator shall be taken separately from each of the funds it administers. The operations of each fund shall also be carried out by the administrator in the name of the administrator, who shall be the holder of the instruments representing the investments made and the assets acquired, which shall be recorded and shall account in a separate manner for the operations carried out by the administrator with its own resources, and for the operations of other funds it administers. The administrator may entrust the custody of such instruments to a securities filing company, regulated by law No. 18,876, in which case these securities may be registered in the name of the depository company. Without prejudice to the foregoing, the administrator may order the custody of the instruments representing the investments made in the name of the fund, a bank or other entities authorising the Superintendence and complying with the conditions to be determined. Article 232.-If a company manages more than one type of fund, the investments in shares of public limited liability companies and other shares entered in the Securities Registry of the respective Superintendence; in shares of securities transactions, issued by foreign corporations or corporations whose issuance has been registered as a public offering value abroad; in securities convertible into shares of a company; in investment fund shares; closed foreign investment funds; and in mutual fund shares, considered as a whole, not may allow direct or indirect control of the respective issuer. The excess of investment which, under the previous subparagraph, is caused by causes other than the administrator, must be disposed of within three years ' time. If the excess is due to causes attributable to the administrator, they must be disposed of within six months of the production, when the securities or instruments are of securities transaction, or up to twelve months, if the excess correspond to values or instruments that do not have them. Where two or more general managers of funds or special funds for a fund type belong to the same group of companies, the investments of the funds managed by them, together, shall comply with the established requirement. in the first indent. In any case, the legal investment limitations must be observed for each type of fund in particular, in accordance with the law and special regulations governing them. Article 233.-The administrators may decide on the merger, division or transformation of funds, in the form established in the respective internal regulations. In any event, the quorum shall be noted for such agreements and the way in which the members shall be informed. Article 234.-The administrator must inform in a truthful, sufficient and timely manner the members of the funds and the general public, on the essential characteristics of the funds which she administers, considering, the investment policy of each of them; market to which they are directed; structure of their investment portfolios; evolution of the profitability of their shares; remuneration of the company for its administration; structure of commissions and operating expenses that can be attribute to the fund; and on any other relevant fact related to the administration. This information must be disseminated by the media which points out the Superintendence, by means of a general rule, clearly indicating the type of fund in question. It shall also be the duty of the administrator to disclose in a timely manner any facts or essential information concerning herself or the funds she administers in the terms of Articles 9 and 10 of this Law. Article 235.-The administrator must send to the Superintendence, on the opportunities that it determines, all the data it requires to be imposed on the state of the administration of the funds, the income produced and the investments and expenditure incurred; and, in general, in the manner in which it complies with the statutory, statutory, regulatory and administrative obligations which it provides. Article 236.-The directors of the administrator, without prejudice to the obligations under the Law on Limited Companies, shall be obliged to ensure that: (a) the administrator complies with the provisions of the rules of procedure of each fund; (b) the information for the contributors is sufficient, truthful and timely; (c) the investments, valuations or operations of the funds are carried out in accordance with this Title, with the special law governing them, with their rules of procedure, with the corresponding rules of procedure or the contract, if any; d) each of the members of the same fund, receive equal treatment, avoiding that the administrator privileges to (i) the operations and transactions carried out are only in the best interests of the the fund in question and for the sole benefit of the unit-holders. In order to comply with the above paragraph, in the ordinary directory sessions, the treatment of the subjects described above and the agreements adopted must be kept on record. Article 237.-In the elections of the directory of companies, whose shares have been acquired with the resources of the funds of these directors, they shall not be able to vote for the following persons: (a) Shareholders who have control of the company or its related persons; (b) the shareholders of the administrator holding 10% or more of their shares, or their related persons; and (c) the directors or executives of the administrator, or of any company of the business group to which she belongs. The administrators may act in concert with each other or with shareholders who are not affected by the restrictions referred to in this article. Notwithstanding the foregoing, they may not conduct any management that involves participating in or having interference in the administration of the company in which one or more directors have been elected. Without prejudice to the provisions of point (a) of the first subparagraph, the administrators may vote for persons acting as directors in a company of the business group to which the company in which the directory is chosen belongs, persons comply with the following: (a) To be a person whose sole relationship with the controller of the business group is derived from his/her participation in the directory of one or more companies of the group. (b) the person has not acceded to the directories referred to in point (a), with the decisive support of the controller of the business group or its related persons. A director shall be understood to have received decisive support from the controller when, upon his or her vote, the votes from that or his related persons were not elected. If the person chosen is affected by the restrictions of this article, or shall be disabled for any reason, he shall cease to be fully entitled to the charge, and the alternate shall definitely assume, if any, or that replacement entitled designate the directory. Article 238.-The administrator has dissolved the authorization of existence or for any other cause, will proceed to its liquidation and to that of the funds it administers, except as provided in the sixth paragraph of this article. The liquidation of the administrator will be practiced by the Superintendence, with all the powers that the law No. 18,046 gives to the liquidators of the limited companies. The liquidation of the respective funds will also be carried out by the Superintendency, acting on behalf and at the risk of the members, contributors or holders of quotas and in their exclusive interest, being invested with all the necessary powers for the adequate realization of the assets of the fund. The liquidations shall be carried out by the Superintendent, by any of the officials of his or her dependency, or by a delegate of him; the costs of liquidation, in any case, the administrator's position. Without prejudice to the foregoing, the Superintendence may authorise the administrator to practice its own liquidation, or that of the funds it administers. The Superintendence, whether or not on the occasion of the dissolution of the administrator, may authorize the transfer of the administration of the funds to another society of equal rotation or of the exclusive spin of the respective fund, under the conditions that it determines. Declared the bankruptcy of an administrator, the Superintendent or the person who replaces it, will act as a receiver with all the powers that the effect confers on the syndicates the law No. 18,175, as soon as they are compatible with the provisions of this Title. ''. Article 4 °.-Introduces the following amendments to the General Law of Banks, contained in the decree with force of law No. 3, 1997, of the Ministry of Finance: 1.-Add the following article 16a, new: '' Article 16a.-People natural or legal persons who, personally or jointly and directly, are the controllers of a bank in accordance with Article 97 of the Securities Market Act and, in addition, individually hold more than 10% of their shares, must send to the Superintendence reliable information about your financial situation. The Superintendence, by means of general rules, will determine the periodicity and content of this information which cannot exceed the one required by the Superintendence of Securities and Insurance to the open public limited companies. '' 2. 51 for the following: " Article 51.-At the time of granting the social deed of a bank or of the operation of a branch of a foreign bank, the minimum capital must be paid by 50%. There will be no deadline to find out the balance. However, as long as the bank does not reach the minimum capital referred to in Article 50, it shall maintain an effective equity of not less than 12% of its risk-weighted assets, which shall be reduced to 10% when it has an effective equity of 600,000 units of promotion. For the purposes of Article 118, the presumption referred to in point (b) shall relate to the percentage corresponding to this Article. '3.-The end of Article 66 shall be replaced by the following:' Where a bank makes contributions to subsidiary companies or (a) in respect of the rotation or capital allocation to a branch abroad, its effective assets shall be calculated by applying the general consolidation rules established by the Superintendency. ' 4.-Article 84 (1), third subparagraph, point (d), delete the final sentence: " No credit letters issued by the parent company of the foreign bank or its branches in favour of whose branch in Chile the guarantee is extended. '' Article 5.-Enter the following amendments in law No 18.046: 1.-amend Article 2, in the following form: (a) Substitute the number (3) of the second subparagraph, by the following: "(3) Those who voluntarily register their shares in the Register of Securities." (b) Remove the second part of the third indent from "However" to the end; and (c) Replace the fourth indent, by the following: " Open anonymous companies and closed public limited companies which agree in their statutes to submit to the rules governing public limited liability companies, or which are legally available to them. forced to do so, will be subject to the supervision of the Superintendency of Securities and Insurance, in the Superintendence, must be registered in the Register of Securities and observe the provisions applicable to the public limited liability companies. '' 2.-Substitute No 4), from Article 57 by the following: '' 4) The disposal of the assets of the (a) a company under the terms referred to in Article 67 (9), or 50% or more of the liability. ' Article 6.-Introduces the following amendments to Law No 18.815: l.-Amend Article 3, in the following form: (a) in point (b), replace the comma (,) and the combination 'and', by a semicolon (;); (b) replace point (c) by the following: ' (c) Check a capital paid in cash, in the form and in the amount indicated in Article 3 2.-Intercalanse following Article 3 °, the following Articles 3 ° A.-and 3 ° B.-, new: " Article 3 ° A.-To obtain authorization for its existence, the administrators must check before the Superintendence, a paid capital in effective money not less than the equivalent of 10,000 promotion units. The administrators must also comply with the provisions of Articles 225, 226 and 227 of Law No. 18,045. Article 3 ° B.-The directors and principal executives of the administrator shall accredit to the Superintendence, which comply with the requirements set out in Article 229 of Law No. 18,045. '' 3.-Substitute Article 4 (n), by the following: " (n) Nature of the arbitration to which the differences that occur between the contributors in their quality of such, or between them and the company or their administrators, shall be subject to, validity of the respective fund or during its liquidation. If nothing is said, it will be understood that this arbitrator will have the quality of arbitor arbitor. ''. 4.-Intercalase in the second paragraph of article 5 °, between the words '' lease '' and '' values '' the expression '' or give on loan ''. 5. continuation of Article 14, the following Article 14 A, new: ' Article 14 A.-The administrator must inform in a truthful, sufficient and timely manner the members of the funds and the general public on the characteristics of the funds which manages and on any facts or essential information concerning itself or the funds which administer, in the terms laid down in Article 234 of Law No 18,045. The directors of the administrator shall also be subject to the obligations referred to in Article 236 of Law No 18.045. '' 6.-Substitute in the final article 19, the "35" by "45". Article 7 °.-The legal persons who formed their social reason with the expression " General Administration of Funds, referred to in Articles 220 and 223 of Law No 18.045, shall eliminate such reserved expression, modifying for that purpose its statutes, within a period of one year from the date of publication of this law. Transitional Article.-The amendments referred to in Article 2 (5), (6), (11), (32), (33), (34), (35) and (38) of this Law shall apply from the first day of the sixth month following that in which it is published. The amendments referred to in Article 2 (1), (10), (13), (14), (15) and (26) shall enter into force on the first day of the twelfth month following the month in which the law is published. However, the Superintendency of Securities and Insurance may only require the requirement for additional risk assets, as referred to in the amendment to point (c), from the first day of the eighteenth month of the month in which it is published. this law. From the date on which the additional equity requirement applies, the additional equity requirement may not exceed 10% of the risk assets within 24 months of that date. The Superintendency of Securities and Insurance may authorize the insurance institutions to request it, the application of the modifications referred to in the previous paragraph before its validity, establishing the day from which the the time limit specified for the requirement to require additional risk capital, together with the 24-month period during which this requirement may not exceed 10% of the risk capital. '' Having complied with the provisions of Article 82 of the Constitution of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of the Republic of Mexico, and because I have had to approve and sanction it, I therefore promulgate and take effect as the Law of Santiago, October 24, 2001.-José Miguel Insulza Salinas, Vice President of the Republic.-Nicolas Eyzaguirre Guzmán, Minister of Finance. What I transcribe to you for your knowledge.-Salutes intently to Ud., Maria Eugenia Wagner Brizzi, Undersecretary of Finance. Constitutional Court Draft law that flexes investments by mutual funds and insurance companies, creates General Administration of Funds, facilitates the internationalization of banking, and improves the laws of public and private companies. The Secretary of the Constitutional Court, who subscribes, certifies that the Honorable Senate sent the bill enunciated in the rubric, approved by the National Congress, in order for this Court to exercise control of constitutionality of Articles 1 °, N ° 10, and 2 °, N ° s. 10, 13 and 19, and by judgment of 10 October 2001, stated: 1. That the following provisions of the draft submitted are constitutional:-The N ° s. (9) and (11) of the first subparagraph of Article 13 of Decree Law No 1,328 of 1976 on the Administration of Mutual Funds, contained in Article 1 (10); and-Article 21 (3) of the new Article 21 and point 1 (g) of the new Article Article 23 of the Decree with Force of Law No. 251, of 1931, of the Ministry of Finance, comprised in the N ° s. Article 2 (10) and (13); 2. It is not for the Court to rule on the following provisions of the draft submitted, for dealing with matters which are not of constitutional organic law:-The N ° s. 1, 2, 3, 4, 5, 6, 7, 8 and 10 of the first subparagraph and the second, third and fourth points of the new Article 13 of Decree Law No 1,328 of 1976 on the Administration of Mutual Funds, contained in Article 1 (10); and-The N ° s. 1, 2, 4, 5 and 6 of the first subparagraph and the second, third and fourth points of the new Article 21, the new Article 23-with the exception of point 1 (g)-and the new Article 36 of the Decree with Force of Law No. 251, of 1931, of the Ministry of Finance, referred to in the N ° s. 10, 13 and 19 of Article 2. Santiago, October 11, 2001.-Rafael Larraín Cruz, Secretary.