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Title III: The Authority and the Operations of the Bank

Subtitle One, General Provisions

Section 27. The Bank may grant financing or refinancing to banking entities and financial institutions only. Under no circumstances shall the Bank grant to such entities and institutions its guarantee, nor acquire securities issued by the state, its agencies or enterprises.

No public expenditure or credit of whatsoever nature may be financed either directly or indirectly with loans granted by the Bank.

However, in the event of foreign war or threat of foreign war, to be qualified by the Council on National Security by means of a secret resolution, the Bank may obtain, confer or finance credits to the state and to public or private entities.

Subtitle Two, Currency

Section 28. The Bank has the exclusive authority to issue banknotes and to coin money in accordance with the provisions of this Title.

Section 29. The Bank may contract both within the country and abroad the printing of banknotes and the stamping of coins, including gold ones.

Section 30. The banknotes and coins shall state their value in the current monetary unit, its multiples and submultiples thereof, and bear such characteristics as may be determined by the Council through a resolution to be published in the Official Gazette.

Section 31. The banknotes and coins issued by the Bank shall be the sole means with an unrestricted discharge effect and power of exchange, shall be legal tender throughout the territory of the Republic and shall be accepted at their face value. The provisions of this Section shall not apply to gold coins.

Section 32. The Bank shall withdraw from circulation the banknotes and coins in poor condition. The damaged banknotes clearly keeping over half of their original text may be exchanged at the Bank at their nominal face value; should they have a lesser percentage, they may be exchanged at their nominal face value provided the Bank is satisfied with the evidence presented that the missing portion has been totally destroyed.

The Bank shall not be compelled to exchange damaged banknotes not covered by the preceding paragraph.

Section 33. The banknotes and coins definitively withdrawn from circulation shall be destroyed in the manner determined by the l and shall cease to have, as of said moment, discharge effect or be legal tender.

The General Manager shall see that the destruction be uniform and shall take complete control and security measures as he may deem necessary to duly safeguard the correction of the process.

Subtitle Three, Regulation of the stock of money in circulation and credit

Section 34. In order to regulate the stock of money in circulation and credit, the Bank shall have authority to:

1. Open credit lines to banking entities and financial institutions and subscribe the corresponding agreements, concede refinancing to said entities and institutions, discount and rediscount bills of exchange, promissory notes and other negotiable instruments both denominated in Chilean and in foreign currency. Discount or rediscount transactions shall always be made with the liability of the endorsing institution.

   In the event of credits accorded to the Bank by foreign or international financial institutions, the Bank will be allowed to assign said credits to banking entities or financial institutions, establishing the terms and conditions for the transfer of such resources to third parties;

2. Establish the reserve requirements that, proportionate to their deposits and commitments, banking entities, financial institutions and savings and loan cooperatives must keep, under the conditions set forth by the Bank.

   In order to exercise the authority referred to above, the consent of the majority of all Council members shall be necessary.

   The reserve shall be kept in banknotes and coins of legal tender available in cash or deposited at sight in the Bank or, as the case may be, in foreign currency of general acceptance in the international exchange markets. The guarantee deposit referred to in Section 36 of the Banking Act shall be deemed part of the reserve.

   Notwithstanding the above, the Bank may authorize that part of the reserve be kept in securities or notes issued by the Bank.

   The reserve rates the Bank may establish shall be standard for the various classes of commitments. Without prejudice to the foregoing, the Bank may establish different reserve rates, either based upon the nature of the deposits or commitments, portions of the total amount of any class, the several currencies in which they may be expressed or the circumstance of being an institution that, considering the date of its incorporation, may not be governed by regulations of general applicability.

   Under no circumstances may the reserve rates being established exceed 40%, on the average, in the case of deposits or commitments at sight, or 20%, in the case of other deposits and commitments.

   Without prejudice to the above established limits, the Bank may, in special cases duly qualified, establish additional reserve rates for deposits made by the State Treasury with banking entities or financial institutions.

   The provisions contained in this number shall be understood without regard to the provisions of Section 80 bis of the Banking Act;

3. Assign instruments of its own credit or investment portfolio to banking entities and financial institutions and acquire from the same, with the right to exact payment from them as jointly and severally liable, instruments of their credit or investment portfolio, under the terms and conditions as determined by the Council;

4. Accept and make deposits in Chilean or foreign currency from or with the banking entities and financial institutions.

   With the consent of the majority of all Council members, the Bank may accept deposits from the State Treasury or from other State controlled institutions, bodies or enterprises. In the event that said deposits earn interest, such interest may not exceed normal market rates;

5. Issue securities, which must state the terms and conditions of the respective issue, as well as to place and acquire said securities in the open market;

6. Buy and sell securities and commercial paper in the open market issued by banking entities and financial institutions. Provided that, in exercising such powers the Bank may not acquire shares of stock of the referenced entities and institutions, without prejudice to the provisions of numbers 2 and 3 of Section 36; and

7. Establish interest rates, fees, indexation systems and other terms and conditions applicable to opertions performed by the Bank.

Subtitle Four, Regulation of the financial sector and of the capital market

Section 35. With regard to the regulation of the financial sector and of the capital market, the Bank shall have authority to:

1. Issue the regulations and establish the terms and conditions which the banking entities, financial institutions and savings and loan cooperatives shall follow with respect to borrowing from the public, whether by way of deposit, loans, participation, assignment or transfer of commercial paper or otherwise;

2. Authorize the banking entities to pay interest on banking accounts, under the terms and conditions determined by the Board;

3. Authorize the banking entities to concede credits associated to banking checking accounts and to allow overdrafts on said accounts;

4. Establish the maximum interest rates payable by the banking entities, financial institutions and savings and loan cooperatives on sight deposits;

5. Issue the regulations and set the limitations on collateral and surety matters denominated in foreign currency to which banking entities and financial institutions must conform;

6. Issue the regulations and set the limitations regarding the ratio that must exist between inflow and outflow operations of banking entities, financial institutions and savings and loan cooperatives;

7. Issue the regulations to which enterprises having as their purpose the issuance or operation of credit cards or any other similar method and which are under the supervision of the Superintendency of Banks and Financial Institutions, must conform;

8. Authorize the establishment and regulate the functioning of clearing houses for bank checks and other securities in which banking entities and financial institutions participate;

9. Authorize the adjustment systems to be used by banking entities, financial institutions and savings and loan cooperatives in their money credit transactions in Chilean currency. Any agreement regarding an unauthorized adjustment system shall be deemed null and void.

   Amendments to an adjustment system authorized by the Bank or its subsequent repeal shall not affect the money credit transactions in which a banking entity, financial institution or savings and loan cooperative is a party, which shall continue being regulated by the adjustment system stipulated, under the same conditions prevailing prior to the amendment or repeal.

   Notwithstanding the above, the parties may, in this case, agree on the substitution of the adjustment system applicable to the transaction by another one which is authorized by the Bank.

   For purposes of the provisions in the second sentence of this subparagraph, the Bank shall continue to calculate, determine and publish the appropriate index in accordance with the procedure prevailing at the time of the amendment or repeal.

   The obligation referred to in the preceding paragraph shall be performed for a period of 10 years counting from the date of the amendment or repeal. Upon expiration of such period, the Bank shall furnish the relevant index only at the request of interested parties, unless the Bank in its sole judgment finds that the number of subsisting transactions requires publication of the relevant index to be continued.

   The resolutions adopted by the Bank pursuant to this Section shall require the prior opinion of the Superintendency of Banks and Financial Institutions, to be given within the period fixed by the Board, which shall not be less than three banking days. Should the Superintendency fail to furnish such opinion within the period set by the Board, the Board may adopt the appropriate resolution without further delay.

Subtitle Five, Authority to maintain the stability of the financial sector

Section 36. In order to maintain the stability of the financial sector, the Bank shall have the power to:

1. Concede credits to the banking entities and financial institutions in the event of emergencies, for a term not exceeding 90 days, whenever these entities or institutions may have difficulties arising out of a temporary cash shortage.

   The extension of the term of such credits shall require a resolution adopted by the majority of all Board Members with the prior opinion of the Superintendency of Banks and Financial Institutions. The Bank may condition the approval of credits upon the observance of specific rules of conduct of financial management by the applicant.

   In the situation described in this subparagraph, the Bank may also be entitled to acquire from the referenced entities and institutions instruments of their credit or investment portfolio;

2. Extend credits to or acquire assets from, banking entities and financial institutions, pursuant to the provisions contained in Sections 120, paragraph four, and Section 129, paragraph two of the Banking Act;

3. Participate in the proposed agreement referred to in Subtitle Two of Title XV of the Banking Act and subscribe, with no limitations, to the terms and conditions thereof, being empowered even to forgive part of the debts.

Subtitle Six, The functions of the bank as state representative

Section 37. At the request of the Minister of Finance, the Bank may contract internal and foreign credits and take part in any transaction which is compatible with its purposes on behalf of the State. To that specific end, the issuance of an executive decree shall be required.

In its capacity as representative of the State, the Bank shall have the power to take every action regarding the repayment and the servicing of principal and interest on the direct or indirect foreign debt of the State.

In the same capacity as indicated in the preceding paragraph, the Bank shall have the power to act on behalf of the State in the conversion and renegotiation of the direct or indirect foreign public debt. With the approval of the President of the Republic granted by means of an executive decree issued through the Ministry of Finance it shall, subject to the terms specified in the legal authorizations concerning each transaction, enter into agreements with the creditors and execute the related contracts which will be binding upon the State as if entered into by itself.

The total proceeds of foreign credits or loans granted, or to be granted, to the Chilean State in the contracting of which the Bank acts as the representative of the state shall be considered by the foreign creditor as a State debt, even though the whole or a portion of such proceeds, in accordance with the respective loan contracts, has been or is intended to be used to finance projects that come within the scope of the purposes of the Bank and, in consequence, has not or is not to be deposited in Treasury accounts, being retained instead by the Bank for such purposes.

In any event, the State, through the Treasury, shall previously provide to the Bank the funds necessary for the servicing and repayment of credits in whose contracting the Bank has acted as State representative.

For the exercise of the functions described in this Section, the Bank shall be entitled to charge the state a fee to be agreed upon.

Subtitle Seven, Authority of the bank regarding international Transactions

Section 38. With regard to international transactions, the Bank shall have authority as follows:

1. To participate, on behalf of the Chilean government or on its own behalf, as the case may be, in foreign or international financial organizations and to engage in business transactions with them. In order for the Bank to act on behalf of the Chilean government, the issuance of an executive decree through the appropriate Ministry, shall be required, which must bear the signature of the Minister of Finance;

2. To carry out the provisions contained in the contracts to which the Bank is a party, as well as those provisions contained in treaties or agreements entered into by the Government of Chile, consistent with the purposes of the Bank; in the latter case an executive decree issued through the appropriate Ministry is required bearing the signature of the Minister of Finance. If, in accordance with such treaties or agreements, an outstanding balance ought to be paid, the Treasury or the agency concerned shall first make available the appropriate funds to the Bank;

3. To borrow all types of credits abroad, through credit lines, loans or in any other manner;

4. To issue securities which shall comply with terms and conditions authorized for the corresponding issue and place them abroad;

5. To concede loans to foreign States, foreign central banks or banking institutions, foreign or international financial entities, provided the purpose of the said loans is to assist in the fulfillment of the objectives of the Bank;

6. To receive deposits from, or open checking accounts both in Chilean and foreign currency to foreign central banks or banking institutions or international financial entities, and foreign States;

7. To keep, manage and use its international reserves, both within the country and abroad. Such reserves may be composed of foreign currency, gold or debt securities, equity or other commercial paper issued or guaranteed by foreign States, foreign central banks or banking institutions or international financial entities. The Bank shall have the authority to pledge such reserves as security of compliance with its obligations.

Subtitle Eight, Authority of the bank regarding foreign exchange transactions (1)

Section 39. Any person may freely engage in foreign exchange transactions. Foreign exchange transactions include buying and selling foreign currency and, in general, any act and agreement that may have the effect of creating, amending, or extinguishing an obligation payable in such currency, even if no transfer of funds or drafts to or from Chile is actually involved. For these purposes, foreign currency shall be deemed to mean banknotes or coins of foreign countries whatever their denomination or characteristics, and bills of exchange, checks, letters of credit, payment orders, notes, drafts and any other document giving evidence of an obligation payable in such currency.

Foreign exchange transactions shall also be deemed to include the transfers or transactions of gold or of instruments representing gold, provided they refer to gold objects that by their nature are suitable to serve as a means of payment, even if no transfer of funds or gold to or from Chile is actually involved, and without regard to the deed or contract giving rise to such transfer or transaction. The above mentioned gold objects and the instruments representing gold shall have, for the purposes of this Subtitle, the character of foreign currency (2).

Notwithstanding the provisions set forth in the preceding paragraph, the import, export or transit of gold in any shape to, from or through the country, shall be considered as merchandise for all customs and tax purposes.

The effects of foreign exchange transactions entered into abroad, for their performance in Chile, shall be subject to Chilean law.

Section 40. The Bank may require that the transaction of specified foreign exchange operations be reported in writing using the prescribed forms. The Bank shall identify in a precise and specific manner the foreign exchange transactions that shall become subject to the obligations referred to in the preceding paragraph.

Section 41. For all purposes of this Act, the Formal Exchange Market shall be deemed to consist of the banking entities. The Bank may authorize other entities or persons to be part of the Formal Exchange Market, that shall be entitled to conduct only such transactions as the Bank may have determined.

A foreign exchange transaction shall be deemed performed within the Formal Exchange Market whenever done by or through any of the persons or entities forming part of it.

Section 42. The Bank may decide, through a justified resolution adopted by the majority of all Board Members, that the following transactions are to be conducted exclusively within the Formal Exchange Market:

1. The repatriation of foreign currency into the country and its sale for Chilean currency representing the value of exports of goods within the terms specified by the Bank. The period for such repatriation shall not be less than ninety days counted from the date of the relevant shipment nor shall the period for the sale of foreign currency be less than ten days counting from the date of expiry of the period for repatriation;

2. The repatriation of foreign currency and its sale for Chilean currency representing export of services, net freight balances, commissions earned on foreign trade transactions, indemnities from insurance or other sources and, generally, payments accrued abroad by individuals or entities resident in Chile, within the terms established by the Bank. The period for such repatriation shall not be less than ninety days counting from the date of the actual or presumptive payment of the foreign currency nor shall the period for the sale of the foreign currency be less than ten days counting from the date of expiry of the period for repatriation.

3. It is a statutory presumption that the date for payment may not be more than 180 days after the date of the loading of the goods, sailing of the vessel, loss of the goods or the date of the obligation, as the case may be.

   In case the Bank requires that the repatriation and sale of the foreign currency representing net freight balances, contracts of carriage, bills of lading, or other contracts that may be entered into by maritime or air enterprises engaging in international transport be performed in the Formal Exchange Market, such transactions shall be deemed to comply with such requirements to the extent that evidence is furnished to the Bank to its satisfaction, at least by means of a balance sheet audited by external auditors, as to the fact that within the relevant fiscal year or within the term in which the applicable provision is in effect, foreign currency has been brought back and sold in such market in an amount equivalent in Chilean currency to the value resulting from the equation set forth in the next paragraph.

   The value referred to in the preceding paragraph shall be the result of the addition of all payments that said enterprises must make in Chile within the relevant period, such as expenses, taxes, purchases, profit distributions or other payments due as a consequence of compliance with acts or contracts to be performed in Chilean currency, less all revenues received within the same period in Chilean currency, with the exception of any amounts arising from credits obtained or to be obtained for said period from individuals or entities domiciled in Chile, whether financial or not, or arising from the issuance and placing of bonds, debentures or securities within the country.

   However, if evidence is furnished to the Bank's satisfaction as to the fact that the foreign currency obtained by said enterprises abroad is less than the liabilities referred to in the two preceding paragraphs, it shall be deemed that said obligations have been complied when evidence is furnished to the Bank as to the repatriation and sale of the foreign currency accrued during the corresponding period.

   In the case of transactions referred to in paragraphs 1 and 2 above, the Bank may determine the foreign currency, from those generally accepted in international trade, in which repatriations are to be made.

   In the exercise of the authority referred to in paragraphs 1 and 2 above, the Bank shall have the power to issue supplementary rules in order to expedite foreign trade, taking into account, for such purpose, the nature, term, and other features of such transactions.

   The Bank may grant extensions for the fulfillment of the obligations of repatriation and sale referred to in the preceding paragraphs or to dispense with those obligations when irrefutable evidence is supplied as to the impossibility of the repatriation or sale, or when the total or partial value to be obtained for the relevant transaction is applied to direct payment abroad of obligations authorized by the Bank.

   The Bank may also dispense with the fulfillment of the above referenced obligations when the relevant transactions are, in its sole judgment, of lesser importance, not representative of commercial value or are applied to payment of imports.

   In the case of exporters who fail to comply with repatriation and sale obligations referred to in paragraphs 1 and 2 above, the Bank may request that as a condition to conducting new export dealings, guarantees he established to ensure compliance therewith, which guarantees, in no case, will exceed 50% of the amount of the relevant transaction;

4. The payment in foreign currency of imports of goods or services, commissions earned as a consequence of foreign trade activities, transport services, royalties, technical assistance, premiums for, or indemnities from insurance or otherwise, and any other payment made in foreign currency abroad or to persons not having residence in Chile;

5. The remittance of foreign currency for purposes of investments, capital contributions, loans or deposits abroad;

6. The sale, either total or partial, in Chilean currency, of the foreign currency received, whatever its origin, by persons having their residence in Chile, as a consequence of acts or transactions conducted in Chile or abroad.

7. In the case of transactions referred to in subparagraphs 3, 4 and 5 of this Section, the Bank shall, whenever exercising the authority thereby granted, identify the grounds giving rise to such transaction.

   The Bank may require the documentation and set forth regulatory provisions necessary to supervise and secure the compliance of the obligations prescribed in this Section.

   In the situation described in this Section, the corresponding transaction shall not be carried out, whether in Chilean currency or by means of other assets, unless expressly authorized by the Bank.

Section 43. The Bank shall adopt the measures necessary to ensure that the Formal Exchange Market is made up of a number of persons or entities large enough to allow its functioning under appropriate competitive conditions.

The Bank shall set forth the regulatory provisions for foreign exchange transactions to be conducted between banking entities and other persons authorized to be a part of the Formal Exchange Market, or between themselves, or between the former and the latter with the Bank.

In the event that by decision of the Bank specified transactions ought to be conducted within the Formal Exchange Market, the persons and entities which form such a market shall not, for this sole reason, be prevented from conducting other foreign exchange transactions. The above shall be understood without prejudice to the provisions established under subparagraph 4 of Section 49.

Section 44. The rate of exchange in the Formal Exchange Market shall be that freely agreed between the contracting parties.

The Bank shall publish daily the rate of exchange of foreign currencies generally accepted in the international exchange markets, based upon the transactions made in the Formal Exchange Market in the immediately preceding business day and, if appropriate, upon the reports it may obtain from foreign market records.

Section 45. The Bank may verify that the value of goods and services referred to in subparagraphs 1, 2 and 3 of Section 42 is consistent with their current value in the international market.

Whenever the Bank exercises such authority, it shall allow the interested party, prior to the execution of such export or import transaction, to submit documentary evidence of the value assigned to the corresponding good or service.

The Bank shall, taking into consideration such information, issue a resolution within the period of fifteen business days, either approving or rejecting such value and, in the latter case, the Bank shall proceed to determine the value it considers to be prevailing in the international market, without prejudice to the right of the interested party to file a claim against the determination before the Commission set up in accordance with the provisions of the following Section.

Should the Bank fail to issue the resolution referred to in the preceding paragraph within the required period, the value assigned by the interested party shall be upheld. In the event that any of the transactions referred to in subparagraphs 1 and 2 of Section 42 is carried out without the prior submission of the documentary evidence referred to in paragraph 2 of this Section, the repatriation and sale liabilities related thereto shall be established based upon the values determined by the Bank. In the case of transactions under subparagraph 3 of Section 42, the relevant payments shall be made based on the values determined by the Bank.

The provisions of this Section shall be understood to be without prejudice to regulations for customs or tax valuation, under the competence of the National Customs Service, Internal Revenue Service or other agencies.

Section 46. Claims against resolutions issued by the Bank rejecting the value of the transaction pursuant to the preceding Section may only be filed in writing within ten banking business days, to a Commission to be formed by the National Economic Prosecutor, who shall preside over it, one representative of the Ministry of Finance and one representative of the Ministry of Foreign Affairs, appointed through the corresponding executive decree.

Based upon the information available or submitted, the Commission shall determine the value to be assigned to the respective transaction.

The Commission shall issue its decision within the period of ten banking business days counted from the date of the filing of the claim.

Decisions adopted by the Commission may be appealed to the Court of Appeals of Santiago, under the terms and conditions set forth in Title V hereof.

Section 47. The Bank has the authority to agree with domestic or foreign investors or creditors and other parties to a foreign exchange transaction, upon the terms and conditions under which the principal, interest, profits or other benefits that might be generated may be used, remitted abroad or repaid to the domestic investor or creditor, as well as to assure them free access to the Formal Exchange Market for that purpose. Agreements entered into under the provisions of the preceding paragraph shall conform to the general regulations and conditions established by the Board, for which a justified resolution adopted by the majority of all of its Members shall be required. Such resolution may be vetoed by the Minister of Finance as provided under Section 50.

Agreements executed in accordance with the provisions of this Section may not be amended unless by mutual agreement of the parties thereto.

Section 48. The Bank shall authorize access to the Formal Exchange Market for investments to be made by pension funds abroad, pursuant to legal provisions governing such funds.

The Bank shall publish at least once a month in the Official Gazette the financial rating given by specialized foreign organizations to the securities and to enterprises or entities, either foreign or international, wherein such investments may be made.

Without prejudice to the provisions contained in the preceding paragraph, the Bank shall be bound to furnish the above information at the request of any pension fund.

Section 49. The Bank shall have the authority to set the following limits to foreign exchange transactions conducted, or those that should be conducted, in the Formal Exchange Market, in accordance with the procedure prescribed in Section 50 hereof:

1. Establish the obligation of repatriation into the country, in foreign currency, of the corresponding payment value obtained from the transactions specified in subparagraphs 1, 2 and 5 of Section 42 and the obligation to convert into Chilean currency the foreign currency arising from such transactions (3)

2. In the event of conversion of foreign currency arising from investments, capital contributions or credits from abroad, the Bank shall authorize access to the Formal Exchange Market for compliance with obligations arising therefrom, under terms and conditions generally in effect at the time of such conversion;

3. Determine that the credits, deposits or investments in foreign currency originating or to be sent abroad be subject to a reserve requirement. Such requirement shall apply only to transactions in respect of which remittances are made after the adoption thereof.

4. Such reserve, which in no event shall exceed 40 per cent of the respective transaction, may be imposed either in Chilean or foreign currency and shall be set up with the Bank or, if so determined by the Bank, with banking entities or financial institutions.

   Whenever exercising the authority provided under this subparagraph, the Bank shall have the power to issue different rules, taking into account the several types of transactions.

   The Bank shall also have the authority to pay interest or to authorize the payment of interest, on funds subject to reserve requirements, which shall in no event exceed normal market rates;

5. Establish that payment or remittance obligations specified in subparagraphs 3 and 4 of Section 42 and Section 48, shall require prior authorization from the Bank under such terms and conditions as the Bank may set forth. This restriction shall not apply to the payment of import of goods and its associated expenses.

6. Without prejudice to the foregoing, the Bank may determine that the right of access to the Formal Exchange Market for payment of imported goods and its associated expenses may only be exercised once the period established for that purpose by the Bank has expired. Said period may not exceed 180 days counting from the date of shipment of such goods. This restriction may only be applied with respect to goods shipped after the adoption thereof. Foreign exchange transactions to which the Bank may have granted general or special authorization under this subparagraph, shall not be amended except with the prior consent of the Bank, either with regard to their purposes, the parties intervening or, generally, any other particular or circumstance representing an alteration of the same as compared with the terms and conditions under which they were authorized. The amendments to such foreign exchange transactions, or the assignment of rights arising from the authorization which have not been consented to by the Bank, shall not be binding upon the Bank, without prejudice to the penalties established under Title IV of this Act;

7. Rule that the entities which form the Formal Exchange Market may execute only the foreign exchange transactions expressly authorized by the Bank and only in the manner established thereby. In any event, foreign exchange transactions related with import and export of goods and the payment and remittance referred to in the second subparagraph of paragraph 1 of this Section, may be engaged in freely at any time.

8. Foreign exchange transactions which in accordance with Section 42 must be performed in the Formal Exchange Market and not expressly authorized pursuant to the restriction set forth in this paragraph, are hereby prohibited;

9. Set limits, under generally applied criteria, to the holdings in foreign currency or investments denominated in foreign currency that banking entities or persons named under Section 41 may maintain within the country or abroad. Under no circumstances may the Bank, in the exercise of the authority provided under this Section, establish that specified foreign exchange transactions have to be performed exclusively with the Bank or under conditions that fail to ensure free market competition.

10. Under no circumstances may the Bank require advance deposits, or establish requirements in respect of transactions regarding import or export of goods and their associated expenses, other than those contemplated under this Act.

Section 50. The limitations established in the preceding Section may only be imposed by resolution adopted by the majority of all Council members, based upon the circumstance of being so required by the stability of the currency or the financing of the balance of payments of the country and for a predetermined period which shall extend to a year, at the very most. The said resolution may be subject to veto by the Minister of Finance, in which event the respective restriction may be adopted only pursuant to a favorable vote of all the Board Members.

The restriction, once the predetermined period has expired, may be renewed, the renewal decision being subject to the same rules as prescribed in the preceding paragraph.

The termination of the restriction or its amendment prior to the expiry date shall require the decision of the Board adopted by a majority of its members, and may also be vetoed as prescribed in paragraph 1.

Section 51. Foreign exchangeoperations executed by the Bank shall not be subject to the limitations and restrictions referred to in this Subtitle.

Section 52.The provisions of this Subtitle shall be understood to be without prejudice to the provisions of Decree Law 600 of 1974.

Foreign exchange transactions referred to in the statutes listed below shall continue to be governed by the provisions thereof: a) Decree Law 1,089 of 1975 ; b) Decree Law 1,349 of 1976; c) Decree Law 1,350 of 1976 ; d) Decree Law 1,557 of 197; and e) Law 18,156.

Subtitle Nine, Other functions of the central bank

Section 53. The Bank shall timely compile and publish the main macroeconomic statistics, including those of a monetary and foreign exchange character, balance of payments and national accounts, and other overall economic and social accounting systems. For all purposes of the preceding paragraph, the Board shall established, by means of a resolution published in the Official Gazette, the nature, contents and periodicity of the information it shall disclose.

In order to perform the functions referred to in this Section, the Bank shall have the authority to request and obtain from the various agencies and departments of the Civil Service Administration, decentralized entities, and generally the public sector, any information it may deem necessary.

Section 54. At the request of the interested entities and, upon a resolution adopted by the majority of all Board Members, the Bank may provide banking services other than financing to banking entities and financial institutions. In such cases, the Bank shall be entitled to charge such fees as may be agreed upon.

Section 55. The Bank may open checking accounts to banking entities and financial institutions, to the Treasury and other state entities, agencies or enterprises whenever necessary for the performance of their transactions with the Bank, as determined by the majority of all Board Members.

The Bank shall have the exclusive responsibility for the issuance of the general conditions applicable to the checking accounts referred to in the preceding paragraph.

Section 56. The Bank shall have the authority to request guaranties in the transactions it performs and to receive securities or goods in custody, under the conditions as may be set by the Board.

Section 57. The Bank may acquire real or personal property at any title, as well as hold, administer and sell such properties.

The Bank may execute any acts, deeds and operations, both banking and commercial, necessary for the accomplishment of its purposes, subject to the powers and authority granted to it by this Act.

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