Establishment of the General Directorate of National Property, subordinate to the Secretariat of Finance

The GENERAL DIRECTORATE OF NATIONAL ASSETS is hereby created, as a dependency of the State Secretariat of Finance, with authority at the national level.

ORGANIC STRUCTURE: The organic structure of the General Directorate of National Assets shall be established in the Regulation to be issued for such purpose by the State Secretariat of Finance, with the participation of the General Attorney's Office of the Republic. In turn, the State Secretariat of Finance shall create the corresponding budgetary structure.

The General Directorate shall be directed by a Director and a Deputy General Director, who shall be public servants.

The functions of the General Directorate of National Assets, with respect to the administration of national assets, are:

• 1)

  To establish norms and procedures for the registration and management of national assets;

• 2)

  To authorize and register the additions, disposals, transfers, donations, exchanges, and public auction sales of fiscal assets;

• 3)

  To maintain a register of charges and discharges of national assets administered or held in custody by third parties;

• 4)

  To intervene in all administrative agreements of the Public Sector that originate movements of fiscal assets;

• 5)

  To verify compliance with legal, administrative, and technical registrations related to the process of discharge of assets owned by the Central Administration of the State;

• 6)

  To periodically and systematically verify the existence and state of preservation of inventoried or registered assets;

• 7)

  To periodically report to the General Comptroller's Office of the Republic the deficiencies in the registers for their incorporation into the Patrimonial Accounting of the State;

• 8)

  To receive and grant assets immediately thereafter in payment; and 9) The General Directorate of National Assets, in coordination with other state institutions, shall be responsible for drawing up an inventory of national assets and assets of the State or fiscal assets, as set forth in Title III of National Assets of the Civil Code.

The following constitute resources of the General Directorate, National Assets: 1) Budget allocations contained in the General Budget of Income and Expenditures of the Republic; and 2) Transfers, bequests, and donations from other public or private sources, national or foreign, and those derived from international cooperation programs.

Responsibility for the administration of movable and immovable assets corresponds to the heads of the Administrative Departments of the corresponding Institution in coordination with the General Directorate of National Assets.

The General Directorate of National Assets shall intervene in every act involving purchase, sale, donation, exchange, transfer, indemnification, and concession of immovable assets of the State. An immovable asset that has a designated purpose shall be deemed assigned for its administration. An immovable asset that is assigned to a specific Dependency of the Public Sector or legally constituted charitable Institution and that does not fulfill the function for which it was designated, upon expiration of the term established in the Resolution issued for such purpose, shall immediately pass to the General Directorate, which may dispose of them prior to the legal owners.

The General Directorate shall intervene jointly with the Appraisal Commission that is formed for such purpose.

The General Directorate of National Assets shall previously review all works contracts or acts that entail the initiation of works by administration or by contract, in order to certify, in the corresponding action, the state ownership of the immovable where the work will be executed, its boundaries, dimensions, and cadastral notations thereof. In the case of transfer of ownership in favor of the State or when the State grants the corresponding public deeds, these shall be authorized by the Notary selected by the General Directorate of National Assets, and they shall not be subject to the professional fee schedule of the notarial profession. The original testimonies of the Public Deeds of the assets mentioned in the foregoing paragraph shall be kept in custody by the General Attorney's Office of the Republic for the corresponding purposes, maintaining a copy of said instruments in the General Directorate of National Assets.

The General Directorate of National Assets shall be part of the Appraisal Commission, composed in the following manner:

• 1)

  General Directorate of National Assets, which shall coordinate;

• 2)

  Superior Audit Court; and 3) The General Attorney's Office of the Republic.

Functions of the Commission: 1) To establish the value of movable and immovable assets in cases of purchase, sale, exchanges, transfers, indemnifications, concessions, deliveries on account of price, and assets received or granted in payment; and 2) To verify the legal status, geographic location, and current condition of the assets.

To amend Articles 82 and 82-A of the Property Institute Law related to the Declaration of File, Article 34 of the State Contracting Law, in the sense that everything referring to the General Accounting Office of the Republic and Office of Administration of National Assets shall be understood to correspond to the General Directorate of Administration of National Assets.

The Regulation of this Law shall develop the Procedure for Acquisition of Immovable Assets, as well as the procedure for public auctions for sales of National Assets and the procedure for the movement of National Assets Abroad in Consulates and Honduran Embassies, as well as the procedure for assets received or granted in payment. CHAPTER II ON THE RECOVERY OF ASSETS

To instruct the National Commission of Banks and Insurance to that, through the Liquidator of the Liquidation processes of Banks that have fulfilled all deposit and non-deposit obligations, make the transfer within periods not exceeding thirty (30) days to the State Secretariat of Finance, as a credit to the funds contributed by the State, of all assets in cash and immovable assets, including operating activities that have been recovered or received in payment that are in its possession. Said transfer must be made at the properly audited book value. New transfers must be made ten (10) days after receipt thereof. When it is a matter of payment of obligations to the Liquidation with movable or immovable assets or of assets held in trust to respond to deposit obligations, the value shall be determined by the judicial appraisal procedure or through the appointment of authorized appraisers. In these cases, interest shall only be charged for ninety (90) days on the total value of the empowered amount, at the maximum legal rate.

The State Secretariat of Finance, for its part, within a period not exceeding twenty (20) business days of receipt, is authorized to sell said assets, through the procedure of public auctions, irregularly with purchase option and/or contributions to Public-Private Partnerships, for which the corresponding publications shall be made and offers must cover at least two-thirds of the audited book value at which they were received. Only in cases where there are no bidders or the offers do not cover two-thirds of said value, sales may be conducted in a direct manner, guaranteeing the recovery of at least two-thirds of their value.

The transfer of ownership of assets transferred to the State Secretariat in the Office of Finance from the liquidation, as well as those made by debtors to the liquidation and those made by the State Secretariat in the Office of Finance to private parties, shall be exempt from the payment of all classes of taxes, including capital gains tax, transfer tax, fees, contributions, stamps and any other that taxes public assets acquired and shall be formalized through Public Deed that shall be authorized by the Notary designated by the General Directorate of National Assets and their fees shall not be subject to the Notarial Fee Schedule.

Of the resources generated by the sale of assets transferred by the liquidation, the equivalent of fifty percent (50%) of the recoveries shall be used for the amortization of the State's internal debt and the remaining fifty percent (50%) shall be used to finance Social Development Projects that only the National Congress shall authorize. The National Commission of Banks and Insurance and the State Secretariat in the Office of Finance shall submit a monthly report to the National Congress of the sales conducted or any transaction that is conducted.

The General Directorate shall proceed with the recovery of those assets in the possession of private parties, whose possession has not been transferred in accordance with Law. TITLE II GENERAL PROVISIONS

Repeal numeral 6) of Article 104, Chapter III and Articles 105, 106, 107, 108, 109, 110, 111, 112, 113 and 114 of Decree No. 83-2004 dated May 28, 2004, published in the Official Gazette La Gaceta No. 30,421, of June 21, 2004, which contains the Budget Organic Law and Decree No. 54-2008, dated June 5, 2008, published in the Official Gazette La Gaceta No. 31,685, of August 14, 2008.

This Decree shall enter into force from the day of its publication in the Official Gazette "LA GACETA". Given in the city of Tegucigalpa, municipality of the Central District, in the Government Civic Center Hotel Plaza Juan Carlos, on the thirteenth day of the month of January of two thousand eleven. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Power. Therefore: Execute. Tegucigalpa, M.D.C., January 27, 2011 PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The State Secretary in the Office of Finance WILLIAM CHONG WONG GENERAL DIRECTORATE OF CADASTRE AND GEOGRAPHY SUMMONS The Institute of Property through the General Directorate of Cadastre and Geography, in accordance with the provisions of Article 64 of the Property Law, issued by the Sovereign National Congress according to Decree 82-2004, hereby SUMMONS: All neighboring landholders communities within the colonies of the municipality of San Pedro Sula, department of Cortés, which are detailed below; for the purpose that the owners or possessors of the properties present themselves within 30 calendar days to verify existing cadastral information and request the correction of errors or omissions that may have been incurred. Date of start of Administrative Public Hearings: Friday, March 18, 2011. Colonies and/or neighborhoods to be served: 1 Col. May 6 (Settlement) 8 Col. Santa María 15 Barrio Lempira 22 Col. Sandoval Sorto 2 Col. Los Naranjos 9 Col. CACVIL 16 Col. Maranatha 23 Col. Miguel Ángel Pavón 3 Col. Alameda 10 Col. CACVIL II 17 Col. Villa Esperanza Sur 24 Col. Flores de Cápulas 4 Bo. Medina 11 Col. Luisiana 18 Col. Municipal 25 Col. Del Valle 5 Industrial Zone 12 Col. Periodista 19 Military Zone Section 26 Col. San Sebastián 6 Col. Satélite I Stage 13 Col. Brisas del Sauce Norte 20 Col. Las Brisas 27 Col. Brisas del Campo 7 Col. Perpetuo Socorro 14 Col. Central 21 Col. El Higuerel 28 Villas Asturias Service Hours: Monday to Sunday from 8:00 A.M. to 4:00 P.M. Location: Administrative Public Hearing Office, Cortés Cadastre Project Located in Los Andes neighborhood, 13th Avenue, between 4th and 5th Street N.O., behind the old José Trinidad Reyes (JTR), San Pedro Sula, department of Cortés. Article 64 of the Property Law The Institute of Property (IP) before a zone or territorial area is declared cadastral shall exhibit the cadastral information collected with its corresponding plans and maps, including the list of properties and the names of the presumed owners and possessors through an Administrative Public Hearing. The start of the Administrative Public Hearing shall be published in advance in the Official Gazette La Gaceta, in a newspaper of greater circulation in various notices posted in the most frequented places of the places where the process is conducted and in at least one electronic means of mass communication. Warning shall be made to them that failure to appear at the offices enabled for this purpose, within thirty days following the first publication, requesting the correction of errors or omissions of the published information, the same shall be deemed accurate and valid. Art. 67 of the Property Law Once the Administrative Public Hearing has been conducted and the cadastral registration survey validation process for a cadastral zone has been exhausted, the Institute of Property shall proceed to declare the zone as "Cadastral Zone". For regular cadastral properties the corresponding real folio shall be opened. Tegucigalpa, M.D.C., March 10 of the year 2011 Eng. MSc. Fausto Ramírez Director General of Cadastre and Geography Institute of Property. 16 M. 2011.