Bill 669.

Summary.

The bill establishes a minimum procedure for banks marketing real estate adjudicated through mortgage enforcement, deeds in lieu of payment or other authorized credit recovery mechanisms. It adds a chapter to Title III of Decree Law No. 9 of February 26, 1998 (Decreto Ley No. 9 de 26 de febrero de 1998). Banks would retain the power to manage and dispose of these properties, but would follow the procedure once they decided to sell directly, invite bids, auction or otherwise convey them. The prior offer would be a regulatory obligation. It would create neither a property right nor a right of redemption, restrict the bank’s ownership, or prevent recovery of the secured loan.

Before advertising a property or negotiating with third parties, a bank would have to offer it to the former owner. If that person had died, expressly waived the option, could not be located after reasonable notification efforts, or stated that they would not exercise it, the offer could be made, in order, to a spouse, a partner in a de facto union, children, parents, siblings and other relatives within the fourth degree of consanguinity or second degree of affinity. The offer would state the sale price, payment method, any financing terms, current appraisal, registration status, general description and period for exercising the option.

The recipient would have thirty (30) calendar days to accept all economic terms in writing. The bank would determine the price, financial terms, additional security, sale method and buyer eligibility requirements. If several people validly accepted, priority would run from the former owner to a spouse or partner, children, parents, siblings and other relatives. Among relatives of equal degree, the first to demonstrate compliance with the bank’s requirements would take priority. If no one exercised the option within the prescribed period, the bank could market the property freely through legally authorized methods.

Banks would keep an up-to-date electronic register of adjudicated properties available for sale, listing the province, district, property type, price, marketing status and publication date. They would also adopt internal policies on transparency, equal opportunity, prevention of conflicts of interest, retention of marketing files and documentary traceability. Directors, officers, executives, employees, significant shareholders and related persons could buy such properties only on the same terms as any other interested buyer. They would be prohibited from using privileged information or influence arising from their positions to gain an advantage.

The Superintendency of Banks (Superintendencia de Bancos) would supervise compliance by requesting information, conducting inspections, reviewing files, issuing compliance instructions and initiating administrative proceedings. Breaches would be administrative offenses under Decree Law No. 9 of February 26, 1998, without barring civil claims for losses actually caused. A breach of the prior-offer requirement would not invalidate a transfer to a good-faith third-party buyer. The bill incorporates the chapter and specified articles into the Consolidated Text of Decree Law 9 of February 26, 1998 (Texto Único del Decreto Ley 9 de 26 de febrero de 1998), and would take effect six months after promulgation. Its provisions concern the Superintendency of Banks, banks, former owners and their families, and the real estate market.