Law on Definitive Deprivation of Assets of Illicit Origin

It is hereby established on a transitional basis that the National Congress extends its Ordinary Sessions from May 1st to June 10th of the present year, entering into recess from June 11th to July 12th, 2010, resuming its activities on July 13th of the same year.

This Decree shall enter into force as of the date of its approval and must be published in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the fifth day of the month of May in the year two thousand ten. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Power. Therefore: Execute. Tegucigalpa, M.D.C., May 31st, 2010. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The Secretary of State in the Offices of Governance and Justice. CARLOS ÁFRICO MADRID HART Legislative Power DECREE No. 27-2010 THE NATIONAL CONGRESS: WHEREAS: Due to the repercussions and serious damages caused by organized crime, it has resulted in nations throughout the world, including the Republic of Honduras, implementing means or mechanisms in order to prevent and combat the various forms of delinquency through which it manifests itself, and to that effect the States, including the Republic of Honduras, have subscribed to the following conventions:

• 1)

  The United Nations Convention Against Corruption subscribed in Mérida, Mexico in the year 2003 and ratified by Honduras on September 30, 2005;

• 2)

  The United Nations Convention Against Transnational Organized Crime; ratified by Honduras on July 30, 2003;

• 3)

  The United Nations Convention Against the Illicit Traffic in Narcotic Drugs and Psychotropic Substances, subscribed in Vienna, Austria on December 20, 1988 and ratified by Honduras on December 11, 1991;

• 4)

  The Central American Convention for the Prevention and Repression of Money Laundering and Asset Crimes, Related to Illicit Drug and Narcotic Traffic, subscribed in Panama on July 11, 1997; and,

• 5)

  Other Conventions subscribed and ratified by Honduras. WHEREAS: The crimes linked to organized crime constitute a phenomenon that has transcended the borders of countries around the world; a situation that has led the majority of nations worldwide to develop a global control system, aimed at preventing that, through the acquisition of goods of illicit origin, members of criminal organizations achieve legalization and enjoyment of those goods. WHEREAS: In order to prevent organized crime from making use of goods originated from their illicit activities, mechanisms must be implemented to deprive them thereof, and to that end, it is necessary to implement the legal means that lead to such end. WHEREAS: It is evident the enormous damages caused to society by illicit activities of illegal enrichment, narcoactivity, vehicle theft, theft from financial institutions, kidnapping, extortion, trafficking of illegal persons, murder by payment, reward or remuneration promise, corruption, and organized crime in general. WHEREAS: While it is true that the illicit activities referred to in the foregoing whereas, produce to their participants in such illicit activities enormous quantities of goods, very often the State finds itself unable to achieve their seizure and subsequent confiscation, given the sophisticated procedures used by members of those criminal organizations, it is equally true that in those cases where judicial proceedings are initiated, particularly in reference to prosecution for the crime of money or asset laundering, there exists an insurmountable barrier for the State due to the lack of a legal instrument, which prevents the effectiveness of applying measures to seize goods, products, instruments, or profits, when the same have been transferred to other persons or when due to legal technicalities, the judicial courts issue acquittal sentences or criminal responsibility is extinguished. WHEREAS: In order to prevent what has been set forth herein, it is prudent and necessary to provide the State with a Special Law that permits the seizure or confiscation of such goods, products, instruments, profits, which have an illicit origin or which lack cause or justification, whether economic or legal, for their origin. WHEREAS: Honduras, as a country that is a signatory to international treaties aimed at combating organized crime, has demonstrated its enormous interest in the combat of this type of criminality, which every day seeks to allow the majority of daily activities of society, and this obligates the State to confront this criminality thoroughly, not only from the point of view of deprivation of liberty of members of the criminal organization, but also through achieving the dismantling or disruption of the organization, through the elimination of every vestige or economic power that its members acquire unlawfully. WHEREAS: Traditionally, the legal figure of permanently depriving goods, products, and instruments from those involved in a criminal act or members of organized crime, has been applied only in those cases in which the individual has been found criminally responsible for the commission of a crime, a circumstance which from every point of view constitutes a limitation for directly addressing criminal organizations. THEREFORE, IT DECREES: The following: LAW ON PERMANENT PRIVATION OF TITLE TO PROPERTY OF ILLICIT ORIGIN CHAPTER I PURPOSE OF THE LAW AND OBJECT

PURPOSE. This Law has as its purpose the fight against organized crime in accordance with what is established in the United Nations Convention Against Transnational Organized Crime and other International Instruments ratified by Honduras; to achieve legitimate protection of the public interest, for the benefit of society, the common good, and good faith, through the dispossession of goods, products, instruments, or profits, originated, obtained, or derived in contravention of Law.

OBJECT. This Law has as its object to regulate:

• 1)

  The identification, localization, recovery, securing, of goods or assets, and the permanent privation of the right to title of goods, products, instruments, profits of illicit origin or that lack economic or legal cause for their origin;

• 2)

  The special procedure to be followed for the effective fulfillment and application of this Law;

• 3)

  The faculties and actions of the authorities in charge of the knowledge and application of this Law;

• 4)

  The obligations of natural or legal persons who engage in the exercise of professions or activities susceptible to being used in the transfers, use, concealment, and circulation of goods, products, instruments, or profits in illicit activities or arising as a product of criminality;

• 5)

  The legal mechanisms that are to permit the exercise of rights of persons that are deemed affected by the application of this Law; and,

• 6)

  The application of special investigation techniques, such as controlled delivery, undercover operations, and others permitted by Law. CHAPTER II DEFINITIONS

DEFINITIONS. For the purposes of this Law, the following terms shall be understood as:

• 1)

  SENTENCE: It is the final ruling issued by the Competent Judicial Body, through which it declares or does not declare the permanent privation of the title to goods, products, instruments, or profits. The sentence issued in accordance with this Law is declarative in character;

• 2)

  GOODS: They are assets of any kind, including currency, corporeal or incorporeal, tangible or intangible, movable or immovable, and the documents and legal instruments, whatever their form, including electronic or digital, that certify ownership or interests over such Rights to such goods, such as bank credits, traveler's checks, bank checks, money orders, shares, securities, bonds, bills of exchange, letters of credit, and other similar instruments;

• 3)

  PRODUCTS: They are goods obtained or derived, directly or indirectly, from an illicit activity or that lack legal economic foundation for their origin;

• 4)

  INSTRUMENTS: They are things or objects, means, used or intended to be used or for use in any manner, wholly or partially in an illicit activity;

• 5)

  PRECAUTIONARY MEASURE, CAUTIONARY MEASURE, OR SECURING MEASURE: It is the temporary prohibition of transferring, converting, encumbering or alienating, or transferring goods, products, instruments, or profits; or their custody or temporary control, by means of an order issued by the Competent Judicial Body or the Public Ministry;

• 6)

  SEIZURE: It is the temporary prohibition decreed by the competent authority to deprive the possession, use, or transfer of goods, products, instruments, or objects used or with regard to which there was reason to believe they are to be used in the commission of illicit activities or that lack economic or legal cause for their origin;

• 7)

  SEIZURE OR CONFISCATION: It shall be understood as the deprivation with definitive character of the title to goods, products, instruments, or profits, decreed by the competent judicial body by means of a final sentence; The application of seizure or confiscation, in accordance with this Law, is not binding on criminal responsibility of the titleholder or the one who possesses the good, product, instrument, or profit. In the event that the one who possesses the good, product, instrument, or profit, under any title, is subject to criminal proceedings, the ruling in that case shall not alter the measure of confiscation;

• 8)

  CONTROLLED DELIVERY: It is the investigation technique that consists of allowing illicit or suspicious shipments of drugs, prohibited substances, or substances by which the aforementioned have been substituted, or cash money, instruments, or objects of value, weapons, ammunition, devices, explosives, and other objects or instruments related to the type of crime being investigated, to be delivered, transit, or leave Honduran territory, with the knowledge and under the supervision of the competent authorities, with the purpose of: 1) Identifying the persons and organizations involved in the commission of crimes; and, 2) Identification of goods, products, instruments, or profits, to achieve their dispossession, gather information; 9) UNDERCOVER OPERATIONS: They are special investigative techniques in which the participants act under covers (fronts) in which both their purpose and the identity of the agents and the police agency conducting them are concealed, such as: 1) Infiltration carried out by a police officer or other legally constituted authority, assigned as an undercover agent for the purpose of penetrating within a criminal organization; 2) Penetration of criminal structures through the use of informants that are part of them or can be introduced more easily than undercover agents, with the support of the latter; and, 3) Undercover operations in support of other investigative proceedings. 10) INFORMANT: It is the person who voluntarily provides to police agencies or other bodies linked with the administration of justice, useful information for investigations concerning the carrying out of illicit activities and the identification and location of goods that are the object referred to in this Law. The informant, with the knowledge of the aforementioned organizations and under special protection in their actions, may participate under certain terms in undercover operations. 11) PATRIMONIAL ANALYSIS: It consists of the forensic technique or the means used to establish whether a person has economic capacity or not. It is based on the analysis of all financial and field information that has been obtained from the person, their family environment, friends, and any person related to the person. All this information must be obtained through responsible investigations. 12) ILLICIT ACTIVITY: It is that activity committed in transgression of Law, such as illegal enrichment, asset laundering, narcoactivity, terrorism, financing of terrorism, human trafficking, extortive kidnapping, extortion, blackmail, commercial sexual exploitation, trafficking in human organs, murder by payment, reward, or remuneration promise, as well as others that infringe upon:

  • 1)

    Public health or the health of the population of the State of Honduras;

  • 2)

    The economy;

  • 3)

    Public administration;

  • 4)

    Property;

  • 5)

    Natural resources and the environment;

  • 6)

    Freedom and security; and, 7) The internal or external security of the State of Honduras; and any other activity that causes patrimonial increase of goods, products, instruments, or profits without economic or legal cause for their origin. 13) FESCCO: Special Prosecutor's Office Against Organized Crime; 14) UCLA: Unit Against Asset Laundering Crime; 15) OABI: Office for Administration of Seized Assets; and, 16) UIF: Financial Information Unit. CHAPTER III PERMANENT PRIVATION OF TITLE TO PROPERTY AND ITS CHARACTERISTICS

CONCEPT OF PRIVATION OF TITLE. The permanent privation of title consists of extinguishing in favor of the State, without any reciprocal benefit or compensation of any nature, that right of title and other real rights inherent thereto, (principal or accessory), transferable personal rights, with respect to goods, products, instruments, or profits, that are found within any of the circumstances referred to in Article 11 of this Law. It is understood that the privation of title shall be applied safeguarding the rights of bona fide third parties.

CHARACTERISTICS OF THE ACTION. The action for permanent privation of title is of public order, autonomous, and independent of any other action in the terms established in this Law, whether it be an action or actions of a penal nature, that may have been initially initiated in another action for permanent privation of title of which the last time it may have been neglected or in which it may have originated. The action for permanent privation of title is of a jurisdictional nature, of a real character, of patrimonial content, and is conducted as a special proceeding following the procedure established in this Law. The action for permanent privation of title concerns goods, products, instruments, or profits, without making any distinction regarding who holds the possession, ownership, or title thereof.

PRINCIPLE OF LAWFULNESS. The action for permanent privation of title shall be governed by the principle of lawfulness, which consists in that title which is held over goods, products, instruments, or profits shall only be recognized as legal or deemed licit, when the titleholder proves that their right originated or was acquired through means or mechanisms compatible with the legal system. The protection of the Law extends only to the form of acquisition described in the preceding paragraph of this Article. Any transaction or contract that entails the acquisition or disposition of the goods, products, instruments, or profits provided for in this Law shall be considered null ab initio, that is from the moment in which the action or agreement took place. Persons are obligated to act with due diligence regarding the antecedents or origin of the good at the moment of entering into a contract of acquisition or disposition. The acquisition of goods, products, instruments, or profits with illicit origin or without economic or legal justification for their origin does not constitute just title; for this reason, the judge who hears the action referred to in this Law shall, in the sentence issued, declare the nullity of the title that establishes such and shall make the registrations or revocations of registrations that correspond.

PRESUMPTION OF ILLICITNESS. For purposes of the application of this Law, it is established as a presumption that goods, products, instruments, or profits that have been acquired or traded at any time and that are subjected to the process of permanent privation of title originate from illicit activities.

INDEPENDENCE OF APPLICABILITY OF THE LAW. This Law shall be applied without any distinction, whether the illicit activities that originated the goods, products, instruments, or profits are or are not subject to investigation proceedings, judicial proceedings, or whether they have or have not been subject to investigation proceedings, judicial proceedings, or whether they have or have not been subject to a criminal conviction sentence.

APPLICABLE RULES. The processing of the action for permanent privation of title shall be subject exclusively to the provisions of the present Law. Exceptionally, in cases not provided for herein, the provisions established in the Law Against the Crime of Asset Laundering, in the Criminal Procedure Code, or in the Civil Procedure Code shall be applied in their order.

PRECEDENCE IN PROCESSING THE ACTION. The action or procedure for permanent privation of title shall have precedence over other proceedings that the judicial body hears, except for those proceedings where it is exceptionally necessary to resolve the legal situation of one or several persons who are deprived of liberty or when it concerns matters related to minors, domestic violence, and matters that are urgent to resolve. CHAPTER IV CASES IN WHICH PERMANENT PRIVATION OF TITLE PROCEEDS AND THE CONDITION OF EQUIVALENT GOODS

APPLICABILITY OF THE ACTION FOR PERMANENT PRIVATION OF TITLE. The action for permanent privation of title to goods, products, instruments, or profits shall apply and the privation of these shall be declared by means of a sentence issued by the judicial body in any of the following cases:

• 1)

  When it concerns goods, products, instruments, or profits that lack cause or economic or legal justification for their origin;

• 2)

  When there exists patrimonial increase without justification at any time and the licit origin thereof cannot be explained;

• 3)

  When the goods, products, instruments, or profits in question originate directly or indirectly from illicit activities, regardless of whether these have been carried out in the territory of the Republic of Honduras or abroad;

• 4)

  When the goods, products, instruments, profits, or businesses in question have been used as a means or instrument for the commission of illicit activities or are intended for such illicit activities or when they correspond to the object of the crime;

• 5)

  When the goods, products, instruments, or profits in question originate from the sale or exchange of others that have their origin, directly or indirectly, in illicit activities, or that have been intended for illicit activities or is a product, effect, instrument, or object of the illicit act;

• 6)

  When the goods, products, instruments, or profits in question have been involved within a criminal proceeding and the origin of these, their use or illicit destination has not been subject to investigation or a final decision has not been made regarding these for any reason;

• 7)

  When the rights in question concern goods of legal origin, but have been used or intended to conceal or mix goods of illicit origin;

• 8)

  When in any case the affected or interested party fails to justify the licit origin of the good, product, instruments, or profits that is the object of prosecution;

• 9)

  When it concerns goods, products, instruments, debit cards, traveler's checks, or other monetary instruments that have been declared when exiting or entering the Republic of Honduras or when, having made the declaration required by Law, there is falsity therein regarding the goods, in accordance with what is established in the Law Against the Crime of Asset Laundering; and,

• 10)

  When it concerns goods, products, or instruments that are abandoned and, after one month has elapsed, the identity of their owner cannot be established. The permanent privation of title shall also apply with respect to goods, products, instruments, or profits that are the object of succession due to death, when these correspond to any of the cases provided for in this Article.

EQUIVALENT GOODS. In those circumstances in which it is not possible to locate the goods, products, instruments, or profits, or to declare the permanent privation of title of specific goods regarding which the action has been filed, the Judge shall, in the sentence, declare the permanent privation of title over the goods or equivalent values of the same titleholder. The provision in the preceding paragraph shall not be construed in detriment of the rights of bona fide third parties exempt from responsibility.

PERMITTED MEANS OF PROOF. In the proceeding for permanent privation of title, the competent authorities, the affected parties, interested parties, and bona fide third parties, to assert their claims, may use any means of proof, although it is not expressly regulated in the Law, provided it is objectively reliable. CHAPTER V PROCEDURE FOR PRIVATION OF TITLE, DIRECTION OF THE INVESTIGATION, AND MECHANISMS FOR OBTAINING INFORMATION IN INSTITUTIONS

STAGES OF THE FORFEITURE PROCESS. The process of definitive forfeiture of ownership is divided into two stages: the administrative stage and the judicial stage. The administrative stage comprises from the beginning of the investigation and concludes with the resolution of the Public Ministry, either decreeing administrative filing or closure or promoting the action before the judicial body. Notwithstanding what is mentioned in this paragraph, this shall not limit the Public Ministry or the competent authority from conducting investigations after the action for definitive forfeiture of ownership has been judicially initiated. The judicial stage begins with the filing of the written request for definitive forfeiture of ownership, promoted by the Public Ministry and concludes with the execution of the final sentence handed down by the judicial body.

THE TECHNICAL-LEGAL DIRECTION AND PATRIMONIAL INVESTIGATION. It falls to the Public Ministry to provide Technical-Legal Direction over the investigation of assets and their origin as referred to in this Law. The Public Ministry, for the practice of patrimonial investigation, shall be assisted by the National Police and by any other entity authorized by Law, and shall be assigned the necessary personnel that will be assigned to UCLA of FESCCO.

THE EXERCISE OF THE ACTION. The Action for Definitive Forfeiture of Ownership shall be promoted before the Judicial Body by the Public Ministry, when any of the grounds foreseen in Article 11 of this Law concur. When the Action for Definitive Forfeiture of Ownership has been promoted before the Competent Judicial Body, the judge who hears this action shall issue an admission order requiring the General Prosecutor's Office to appear in the proceeding as a party within the term of three (3) days. In the event that the General Prosecutor's Office does not appear, it shall not interrupt the continuation of the proceeding.

COLLABORATION OBLIGATIONS. All public or private institutions are obligated to provide the Public Ministry or the competent authority, within the term of twenty-four (24) hours, with the information that is required. Exceptionally, for justified reasons, this term may be extended up to forty-eight (48) hours. For compliance with this provision, the UIF and the institutions supervised by the National Commission of Banks and Insurance and unsupervised financial institutions shall provide the necessary personnel for the twenty-four (24) hour period.

PROCEDURE FOR OBTAINING INFORMATION. The information that may be required from financial institutions supervised by the National Commission of Banks and Insurance, and from financial institutions not supervised by the same but obligated to report pursuant to the Law Against the Crime of Money Laundering, shall be obtained by the Public Ministry through the UIF, and the latter, in turn, through the compliance officers of the designated financial institution.

THE UIF'S OBLIGATION TO SUBMIT INFORMATION. The information that the UIF must provide within the terms indicated in Article 17 of this Law shall consist of: The name of the Institution, the name of the account holder, account numbers, confirmed balances, unconfirmed balances, account movements such as deposits or withdrawals, and persons authorized or beneficiaries in those accounts. Subsequently, the UIF within five (5) days following delivery of the information referred to in this Article shall submit to the Public Ministry the complement of information requested duly certified by the corresponding party, and that was not included in the preceding paragraph. Failure to comply with the terms indicated in the preceding Articles, without any justification shall give rise to incurring the crime of disobedience.

THE FACULTY TO OBTAIN INFORMATION DIRECTLY. As provided in this Law regarding the obtaining of information through the UIF, this shall be without prejudice to the judicial body or other authorized authority obtaining such information directly from the required financial institution.

BANKING SECRECY, PROFESSIONAL SECRECY AND STATE SECRECY. For the purposes of the applicability of this Law, Banking Secrecy, Professional Secrecy or State Secrecy shall not be invoked. The protocols of notaries may be inspected by the Public Ministry or seized, if applicable, without need for judicial authorization.

LEGALITY OF USE OF INFORMATION. The financial information that has been obtained in accordance with what is provided in the current Law Against the Crime of Money Laundering may be used for the purposes that this Law establishes.

OBTAINING OF DOCUMENTS. Documents related to the action established in this Law, which may be important for patrimonial investigation, shall be retained by the competent authorities. Persons who have in their possession documents to which the preceding paragraph refers are obligated to present them and deliver them immediately when required by the Public Ministry or by the police authority or the Competent Judicial Body. If the documents are not delivered, their immediate seizure shall be ordered and a trial for the crime of disobedience shall be brought against the responsible party for non-compliance. It is understood that the person who has in their possession documents to which this Article refers may deliver them, even though they have not been required by the authority for such purpose.

CONFIDENTIALITY AND EXEMPTIONS FROM LIABILITY. Public or private institutions, natural persons who provide information that has been requested of them by the authorities in accordance with this Law, and the authorities who for any reason have knowledge of the matter of definitive forfeiture of ownership, are obligated to maintain due confidentiality and comply with what is provided in Article 30 of the Law Against the Crime of Money Laundering, and furthermore, shall be exempt from liability, whether penal, civil, administrative, labor or of any kind, when they provide the requested information. CHAPTER VI OBLIGATION TO REPORT

THE OBLIGATION TO REPORT. The General Prosecutor's Office; the Superior Court of Accounts; the State Secretariat for Finance; the Executive Department of Revenue (DEI); the State Secretariat for Security; the Directorate for the Fight Against Drug Trafficking; the National Commission of Banks and Insurance; the natural and legal persons referred to in the amended Article 37 of the Law Against the Crime of Money Laundering and those that carry out their activities described therein; any public or private institution; the Prosecutor or Court Agent; the Judge of the Judicial Body; or any other natural person who, in the course of any activity or proceeding, obtains knowledge of the existence of assets, products, instruments or proceeds of suspicious or unusual origin, must report to FESCCO of the Public Ministry regarding the same so that they may be subject to the forfeiture process. FESCCO shall give the respective handling to the information received.

REMUNERATION TO PRIVATE PARTY. The natural person who timely, effectively supports or provides collaboration for obtaining elements that serve to declare definitive forfeiture of ownership shall receive remuneration from the State of thirty percent (30%) of the total that is obtained in accordance with the liquidation of the assets or the commercial value when these are awarded to the State. The OABI shall be in charge of this allocation in coordination with the Unit Against the Crime of Money Laundering, which shall provide the corresponding information. CHAPTER VII SPECIAL INVESTIGATION TECHNIQUES FOR ASSETS, PRODUCTS, INSTRUMENTS OR PROCEEDS

THE USE OF SPECIAL INVESTIGATION TECHNIQUES. In the investigation and identification of assets, products, instruments or proceeds that would be subject to the process of definitive forfeiture of ownership, the competent authorities may make use of special investigation techniques contained in international instruments ratified by the Republic of Honduras and current laws. Such techniques may also be used to identify and discover the illicit activities that originate the assets, products, instruments or proceeds, which with difficulty or otherwise the special techniques that can be used include, among others: controlled delivery, undercover agent and telephone interceptions, and all those investigative techniques permitted by Law.

AUTHORIZATION FOR THE APPLICATION OF TECHNIQUES. The authorization for the technique of controlled delivery, undercover agent and telephone interceptions to be carried out shall be authorized by the Judicial Body in a duly reasoned resolution. Exceptionally the Public Ministry may authorize in cases of urgency the controlled delivery and undercover agent, but must report within the term of (24) hours to the Judicial Body who shall validate or annul what was done.

OFFICIAL EXPERT WITNESSES AND PATRIMONIAL REPORTS. For the preparation of the analysis or patrimonial report, the Public Ministry or any other competent authority may rely on persons who, by reason of their knowledge, hold the status of official expert witnesses appointed by the corresponding authority. The official expert witnesses referred to in this Law shall not be required to be sworn in by the Judicial Body to prepare their expert reports.

SWEARING IN OF EXPERT WITNESSES. In cases where patrimonial expertise is required, the swearing in of the expert witness shall be mandatory and shall be carried out by the judge who is hearing the action for deprivation of ownership. This swearing in shall take place at the hearing where ratification is to be made. When the affected parties or good faith third parties require the use of non-official expert witnesses, they must be investigated by the competent judge.

REGULATION OF SPECIAL INVESTIGATION TECHNIQUES. For the purposes of application and regulation of special investigation techniques in proceedings, within a period not exceeding ninety (90) days from the effective date of this Law, the Regulations must be prepared. This regulation shall be prepared by the Public Ministry and must be published in the Official Journal "La Gaceta". CHAPTER VIII PRECAUTIONARY, PROTECTIVE, OR SEIZURE MEASURES

CONCEPT OF PRECAUTIONARY MEASURES. Precautionary, protective, or seizure measures consist of the prohibition or suspension of the power to transfer, convert, alienate, encumber, or move assets, products, instruments, or proceeds; or their custody or temporary control, whether they are money deposited in financial institutions, securities, or the yields thereof, as well as the order not to pay them when the order to pay them when paying them when

PROCEDURAL BASIS FOR PRECAUTIONARY MEASURES. At any stage of the process and for the purpose of preserving the availability of assets, products, instruments, or proceeds, the Competent Judicial Body may request the Public Ministry to decree, without prior notification or hearing, precautionary, protective, or seizure measures thereof. Exceptionally, the Public Ministry, in cases of urgency or to prevent assets, products, instruments, or proceeds from being hidden or making their pursuit or availability difficult for the authority or due to any other circumstance where it cannot be processed before the Judicial Body, may order without prior notification or hearing, precautionary or seizure measures on the assets, products, instruments, or proceeds referred to in this Law. Once the resolution issued by the Public Ministry is executed, within the three (3) business days following, the remedy of reconsideration shall proceed before the official who issued the resolution, and subsidiarily the remedy of appeal before the superior hierarchical officer, who must resolve it within a period not exceeding three (3) days. The filing of remedies at any of the stages provided for in this Law shall not prevent the Public Ministry from promoting the procedure for definitive deprivation of ownership before the Judicial Body. In the event that the action for deprivation of ownership has already been brought before the Judicial Body, when the Public Ministry issues the precautionary, protective, or seizure measure, it shall notify the Competent Judicial Body within the period of seventy-two (72) hours and explain the reasons that determined it. The judge in question, duly motivated, shall uphold or annul wholly or partially what was done. Against the resolution of the Judicial Body granting convalidation or annulment, the remedy of reconsideration shall proceed, which shall be resolved following the procedure established by the Criminal Procedural Code. After the period of twelve (12) months has elapsed following the issuance and execution of the precautionary, protective, or seizure measures, without the Public Ministry having promoted the action for definitive deprivation of ownership, these may be revoked. The term indicated in this Article may be extended through judicial authorization for an equal period for one time only, and shall begin to run from the registration in the corresponding register.

OBLIGATION TO PLACE ASSETS AT THE DISPOSAL OF OABI. Assets, products, instruments, or proceeds, on which a precautionary, protective, or seizure measure falls, as well as those that are seized or those that are found abandoned or in any other circumstance, shall be placed at the disposal of OABI, for its administration, custody, or destruction as appropriate. Except in cases where it is appropriate for registration reasons and in order to prevent alienation or transfer to third parties, it shall not be necessary to issue precautionary, protective, or seizure measures, in accordance with this Law, on assets, products, instruments, or proceeds, when the Public Ministry has them available, either by having seized them, apprehended them, issued a precautionary measure on them, or having found them abandoned.

COMMUNICATION OF PRECAUTIONARY MEASURES. Precautionary, protective, or seizure measures, once decreed, shall be communicated by any means to the institution where they must be executed. Institutions obligated to comply with the registration of precautionary or protective measures referred to in this Law shall proceed immediately to execute them in those cases where the assets, enterprises, or their owners are sufficiently identified. Otherwise, prior to identification, they shall take all necessary steps to ensure the availability of assets, products, instruments, or proceeds listed in the names of the persons described in the order of precautionary, protective, or seizure measure issued. In the registers of real property and commercial property, as well as in other public or private institutions where it is necessary to execute precautionary, protective, or seizure measures, no preference shall be given to delay or fail to execute the measure. Any registration ignoring what is stipulated in this Article shall be null and shall result in administrative, criminal, and civil liability of the violator.

EXECUTION OF PRECAUTIONARY MEASURES. For the purposes of their applicability and effectiveness, precautionary, protective, or seizure measures that are issued shall be communicated by any means to the institution where they must be executed. Institutions obligated to comply with the registration of precautionary or protective measures referred to in this Law shall proceed immediately to execute them in those cases where the assets, enterprises, or their owners are sufficiently identified. Otherwise, prior to identification, they shall take all necessary steps to ensure the availability of assets, products, instruments, or proceeds listed in the names of the persons described in the order of precautionary, protective, or seizure measure issued. In the event that the precautionary or protective measure falls on bank accounts, it shall be made effective through the compliance department of the institution, without prejudice to it being executed through other officials of the same.

REVOCATION OF PRECAUTIONARY MEASURES. Precautionary, protective, or seizure measures may be revoked by the Public Ministry or by the Competent Judicial Body in the cases this Law determines. The Judicial Body may only revoke the precautionary, protective, or seizure measures issued if the petition for revocation is presented by the Public Ministry or in the final judgment that denies the request for definitive deprivation of ownership. Revocation shall take place at a hearing with the presence of the representative of the Public Ministry and the legal representative of the affected owner.

REMEDIES RELATED TO PRECAUTIONARY MEASURES. Against the resolution issued by the Judge of First Instance granting or denying the decree of a precautionary, protective, or seizure measure, the remedies of reconsideration and subsidiary appeal shall be available. The remedy of reconsideration shall be processed in accordance with what is established in the Criminal Procedural Code. The remedy of appeal shall be admitted in devolutive effect and shall be processed following the procedure established in this Law for the remedy of appeal of the final judgment. Remedies filed at any stage shall not suspend the processing of the case. CHAPTER IX GUARANTEES AND DUE PROCESS

DUE PROCESS. In the exercise and proceedings of the case regarding definitive deprivation of ownership, due process shall be guaranteed.

PROTECTION OF RIGHTS. During the procedure for definitive deprivation of ownership, the rights of the affected party or owner are guaranteed and protected, allowing them to present evidence and participate in its examination, to oppose the claims being made against the assets, products, instruments, or proceeds, as well as to exercise the right of contradiction, defense, and other rights that the Constitution of the Republic establishes.

OTHER GUARANTEED RIGHTS. Likewise, the following rights shall be guaranteed to the affected party or owner:

• 1)

  To appoint their legal representative;

• 2)

  Access to prove the legitimate origin of their assets, products, instruments, or proceeds, whose ownership is in dispute;

• 3)

  Access to prove that the assets, products, instruments, or property in question are not found in the grounds that support the action for definitive deprivation of ownership; and,

• 4)

  Access to prove that, with respect to assets, products, instruments, or proceeds that specifically constitute the object of the action of this Law, a favorable judgment has been rendered on the licit origin of the assets, products, instruments, or proceeds that must be recognized as res judicata within the process of definitive deprivation of ownership, by identity with respect to the parties, the object, and the cause of the case. The rights guaranteed in this Law shall also apply with respect to the good faith third party.

OBLIGATION TO PROVE LICIT ORIGIN. The affected party or owner of assets, products, and instruments subject to the process of definitive deprivation of ownership must prove, through the evidence means they consider suitable, the licit origin of their assets, products, instruments, or proceeds, so that these are not affected in accordance with this Law. Good faith third parties may intervene in the case defending the evidence means they consider suitable in order to achieve the non-affectation of their assets, products, or instruments. CHAPTER X NOTIFICATIONS, CITATIONS, SUMMONSES

POWERS OF THE JUDICIAL BODY IN PROCEEDINGS AND RESOLUTIONS. For the fulfillment of acts and resolutions that the Judicial Body orders, it may request the intervention of public force and adopt the measures that are necessary.

TIMELINES FOR SERVING CITATIONS AND SUMMONS. During the process, citations and summons shall be served on the day they are issued or on the next business day. Notifications shall be executed on the same date as issued, personally at the judicial office or on the next business day by means of the notice board posted in the office, except as provided for the notification and summons of the admission resolution of the action for definitive deprivation of ownership. Notifications or publications provided for in the procedure established by this Law shall be executed under the responsibility of the Judicial Authority, which shall give priority to these actions over any other. Non-compliance with the foregoing paragraph and concerning the failure to meet the timelines for notification or publication shall give rise to administrative, civil or criminal liability being attributed to the responsible official.

TIMELINES FOR THE EFFECT OF NOTIFICATIONS. The notification shall take effect on the day following its service. The edict shall have the effect of personal notification on the day following its last publication. The only personal notification and summons that shall be made to whoever appears as holder of principal or accessory real rights in this procedure, when possible, shall be the resolution admitting the request for deprivation of ownership. In all other cases, the procedure shall be followed in accordance with the procedure established in this Law. The Judge may authorize days and hours for serving notifications, citations and summons.

CONTENT OF THE NOTIFICATION DOCUMENT. The notification document shall contain:

• 1)

  The name and location of the judicial authority that issued the resolution, its date, and the matter at issue;

• 2)

  The name and surnames of the natural person or their legal representative of the legal person to whom the notification must be served, when known;

• 3)

  The object of the process;

• 4)

  Literal copy of the operative part of the judicial decision ordering that they be notified;

• 5)

  The place, date and time of notification; and,

• 6)

  Signature of the person serving the notification with indication of their position.

MEANS FOR CITING OR SUMMONING. The parties to the deprivation of ownership process, as well as witnesses, expert witnesses and those who appear as holders of principal or accessory real rights according to the corresponding property registry certificate, shall be cited or summoned by any means, in the manner established in this Law.

CONTENT OF THE CITATION DOCUMENT. Content of the citation. The citation document shall contain:

• 1)

  The name and location of the judicial authority that issued the resolution, its date, and the matter at issue;

• 2)

  The name and surnames of the natural person or their legal representative of the legal person to whom the citation must be served;

• 3)

  The object of the citation;

• 4)

  The place, day and time in which the cited person must appear; and,

• 5)

  The warning to the holder of the principal or accessory real right that if they do not appear, the procedure for which they have been cited shall continue its course in accordance with this Law. Witnesses and expert witnesses shall be warned that if they do not appear without just cause, they shall be prosecuted for the crime of disobedience.

PROCEDURE FOR CITATION AND SUMMONS. For purposes of this Law, when it is necessary to cite or summon a person other than the holder of principal or accessory real rights subject to the action for deprivation, who has disappeared, does not have a fixed domicile, or for any other circumstance that prevents the execution of this proceeding, this act shall be performed by the respective judicial official, by means of a document, which shall remain posted on the notice board of the Court for a period of five (5) days. Simultaneously with this action, within the aforementioned period, the persons shall be cited and/or summoned through the publication of edicts for three (3) days in two radio stations of greatest audience in the country and in two (2) written or digitalized newspapers of greatest circulation in the Republic. The costs incurred for the publications referred to in this Article shall be borne by OABI.

NULLITIES. The nullities alleged by the parties shall be deferred to be resolved in the final judgment. There shall be no nullity of preliminary pronouncement.

EXHAUSTIVE GROUNDS FOR NULLITY. The sole grounds for nullity that may be alleged in the process of definitive deprivation of ownership shall be:

• 1)

  Lack of jurisdiction;

• 2)

  Failure to notify the order admitting the request for definitive deprivation of ownership filed; and,

• 3)

  Unjustified refusal to admit a relevant means of proof, or failure to execute without justification a means of evidence timely admitted.

EXCEPTIONS AND INCIDENCES. In the process of definitive deprivation of ownership, preliminary exceptions and incidences regarding expertise by gross error shall have no place, and shall be decided in the final judgment. Likewise, a prejudicial claim cannot be alleged with the purpose of preventing the continuance of the deprivation procedure or the issuance of a final judgment.

CONSOLIDATION OF PROCESSES. Under this Law, consolidation of processes shall not be admitted, except if they are related deprivation of ownership processes.

THE COMPETENT JUDGE. The Specialized Court in the matter of deprivation of ownership, with national jurisdiction and having its seat in the city of Tegucigalpa, municipality of the Central District, of the department of Francisco Morazán, shall be competent to hear the process of the action for definitive deprivation of ownership. For the execution of any proceeding, the Specialized Court may delegate to the Criminal or Sectional Courts of the Republic. In the same manner, in the investigative phase, the competent authority may proceed to the Criminal and Sectional Courts of the Republic. For the execution and expeditious handling of proceedings, the Courts may make use of any available technological means.

AUTHORITY RESPONSIBLE FOR INITIATING THE JUDICIAL PROCESS AND THE REQUIREMENTS OF THE APPLICATION. For the processing of the action for definitive deprivation of ownership, the Public Prosecutor's Office through the Court Agent shall file a written request for definitive deprivation of ownership before the competent Judicial Authority. The written request for deprivation of ownership shall contain, among other requirements:

• 1)

  The Competent Judicial Authority;

• 2)

  The description and identification of the assets, products, instruments or proceeds regarding which definitive deprivation of ownership is requested, indicating their location and other data for their localization;

• 3)

  The enumeration of the assets, products, instruments or proceeds. In case a precautionary measure has been imposed upon these, the authority that ordered such measure shall be indicated;

• 4)

  The name and domicile of the holder of principal or accessory real rights, of whoever holds or is known to hold such rights or both, if they were known to the authority;

• 5)

  A brief statement of the facts on which the petition is based, indicating the grounds that support the filing of the request for definitive deprivation of ownership;

• 6)

  The indication of the direct or circumstantial evidence which is considered shall be used to prove their claim; and,

• 7)

  Place and date; and,

• 8)

  Signature and seal of the Court Agent or Prosecutor of the Public Prosecutor's Office.

TIMELINE FOR RESOLVING THE REQUEST FOR DEPRIVATION OF OWNERSHIP AND ITS CONTENT. The request for definitive deprivation of ownership shall be resolved by the Court within a period of three (3) business days, by means of a properly reasoned resolution. If it is noted in the request that it lacks any requirement, a period of three (3) days shall be granted for its correction, but this may not suspend, interrupt, or terminate the procedure that the Public Prosecutor's Office has initiated. No remedy shall lie against the resolution admitting the request for definitive deprivation of ownership. The remedies of reconsideration and appeal shall lie against the resolution declaring the inadmissibility of the request for definitive deprivation of ownership.

ADMISSION OF THE REQUEST FOR DEPRIVATION OF OWNERSHIP. Once the request for definitive deprivation of ownership is admitted, the court shall, in its resolution, inform whoever appears as holder of principal or accessory real rights, and shall summon them to appear before the Court within a period of ten (10) business days in order to become aware of the judicial process that has been initiated regarding their assets, products, instruments or proceeds.

NOTIFICATION AND SUMMONS OF THE JUDICIAL PROCEEDING. The notification and summons of the admission of the request for initiation of the judicial proceeding for definitive deprivation of ownership shall be carried out based on the following parameters: 1) Personally to those who appear as holders of principal or accessory real rights, if they are identified and their domicile is known. This notification shall be made in accordance with the following rules:

• a)

  Personal notification shall be served at the domicile of the persons who appear as holders of principal or accessory real rights;

• b)

  Personal notification shall be served at the place where the person who appears as holder of principal or accessory real rights is detained, when said person is deprived of liberty; The judicial official executing the act of notification must ascertain the domicile of the person to be notified, as well as deliver a literal copy of the operative part ordering their notification, and shall draw up a record of this proceeding, which must include the identification data of the person who received it and the name of the judicial official who performed such action; and,

• c)

  If the holder of principal or accessory real rights or any person to receive the notification is not found, or is found but has refused to receive or sign the notification, it shall be posted on the door of the residence or at the secretariat of the penitentiary facility, and the judicial official shall note this in the record. The same procedure shall be followed if they do not respond to the judicial official's summons or refuse to permit access. 2) When notification and summons must be made to the person holding principal or accessory real rights and such person has disappeared, does not have a fixed domicile or their whereabouts are unknown, or there exists another circumstance that does not permit the execution of the proceeding, notification and summons shall be performed by the respective judicial official, by means of a document, which shall remain posted on the notice board of the Court for a period of five (5) days. Simultaneously with this action, within the aforementioned period, the persons shall be notified and summoned through the publication of edicts for three (3) days in two radio stations of greatest audience in the country and in two (2) written or digitalized newspapers of greatest circulation in the Republic or by means of Internet. In the latter case, the Supreme Court of Justice shall enable a special site on its internet portal in order to make accessible the knowledge of the notification referred to in this numeral to any interested party. The costs incurred for the publications referred to in this Article shall be covered by the Judicial Branch.

Once the holders of principal or accessory real rights have appeared in person or the deadline for appearance or appointment of legal representative has expired, the Court, within a period not less than five (5) business days nor greater than ten (10) business days, shall proceed to set a hearing with the presence of the Public Ministry Prosecutor and the affected persons or their legal representatives who have appeared, to inform them, directly and specifically, about the process of definitive deprivation of ownership that has been initiated regarding their property. This hearing shall also have the purpose of appointing a legal professional, whether public or private, to represent those who do not appear in person and to inform them about this proceeding being brought against their clients, who shall ensure compliance with the rules of due process. In the event that the appointed legal representative renounces their appointment or abandons the case, the Court shall, without further proceedings, appoint a legal professional ex officio. At this hearing, a date and time shall be set for the parties to propose the evidence they deem relevant to argue their claims, with an indication of the facts or circumstances to be proven. This hearing shall be held within a period not less than ten (10) business days nor greater than fifteen (15) business days.

At the hearing for presentation of evidence, after listening to the arguments of the parties, the admissibility or inadmissibility of the evidentiary means offered shall be ruled upon if possible; otherwise, it shall be suspended and the Court shall convene the parties so that within a period of three (3) days they shall appear at the office to hear the reasoned resolution. Only evidentiary means that are manifestly impertinent, useless, or disproportionate in relation to the evidentiary purpose may be rejected. Against the resolution issued, the remedy of reconsideration shall be available, which shall be resolved immediately or within the following twenty-four (24) hours. Likewise, at this hearing, a date and time shall be set for the presentation of the admitted evidence, which shall take place within a period of not less than fifteen (15) business days nor greater than twenty (20) business days.

At the hearing for presentation of evidence, the Court shall proceed to present the evidence, in order, beginning with that of the Public Ministry and continuing with that of the affected parties and third parties in good faith if applicable, observing the principles of immediacy, concentration, and continuity. In all other respects, the provisions of the Penal Procedural Code shall apply.

Once the presentation of evidence is concluded or the set deadline expires, at the same hearing the Public Ministry and the other interveners shall jointly present their final conclusions immediately before the Court; in accordance with what has been argued, the preponderance of the evidence, and taking as a basis the system of assessment through sound judicial discretion, it shall issue a final judgment. The reading of the judgment shall be made at a hearing that shall take place within a period of five (5) business days. The reading thereof shall have the effect of notification for all parties.

Against the final judgment, the remedy of appeal in writing shall be available within the three (3) days following the reading, and shall be filed before the Judicial Body that issued it. In the same written brief filing the appeal, the appellant shall express the grievances caused by the judgment. The order admitting the appeal remedy shall be notified the same day of its date in person at the judicial office or the following business day by the bulletin board posted at the office, and in the same resolution the parties shall be called upon to appear before the competent Court of Appeals within a period of three (3) business days. In the brief appearing before the Court of Appeals, the appealed parties shall respond to the grievances expressed by the appellant. The file shall be sent to the competent Court of Appeals on the following business day after the last notification. The appeal remedy shall be resolved by the competent Court of Appeals within twenty (20) business days following the day on which the file is received by the Court.

The competent Court of Appeals, once the deadline for appearance has expired, shall immediately issue a resolution setting a date and time for the parties to appear at a hearing in which they shall orally present their arguments and conclusions. This hearing shall take place within five (5) business days following the notification of the resolution. The hearing referred to in the preceding paragraph shall be held with the interveners who appear, and at this hearing, the Court of Appeals, making use of the system of assessment through sound judicial discretion, shall issue the judgment that corresponds. When it is not possible to issue the judgment at this hearing due to reasons of time, the complexity of the matter submitted to its knowledge, or other circumstances, it shall issue on the following business day, which shall become final. The reading of the judgment issued by the competent Court of Appeals shall be made at a hearing within five (5) following business days in which it was issued. The reading shall have the effect of notification for all interveners and those who shall receive a copy of the judgment. Against the judgment of the Court of Appeals, only the remedy of reconsideration is available. The Court shall send the file to the court that issued the judgment on the following business day in which it becomes final.

The judgment that declares the merits or lack of merits of the action for definitive deprivation of ownership shall be drawn up in writing, in the name of the State of Honduras and shall contain the following:

• 1)

  The court that issues it, the name and surnames of the Judge or Judges and the place and date of the judgment;

• 2)

  The names and surnames of the parties, name and surnames of the holders of the real and accessory property in case they are known;

• 3)

  The name of the current possessor of the property when different from the holder;

• 4)

  The description of the property subject to the action for definitive deprivation of ownership, its location, if it has encumbrances, its value if recorded, and any other useful information;

• 5)

  In separate and numbered paragraphs, the final conclusions of the parties shall be recorded succinctly;

• 6)

  The statement of reasons for the ruling shall be recorded containing:

  • a)

    The declaration of proven facts;

  • b)

    The assessment of evidence; and, c) The legal grounds.

• 7)

  The operative part shall declare the merits or lack of merits of the definitive deprivation of ownership. In the event that merits are declared, it shall order the forfeiture of all real rights, principal or accessory, encumbrances, liens, or any other limitation to the availability or use of the property, and shall order its adjudication in favor of the State, through the OABI, ordering it to proceed with the assignment in accordance with this Law. Likewise, in this operative part, it shall provide whether the property was immovable, movable, or currency, and if it is not yet at the disposal of the OABI, it shall be placed at its disposal immediately, with the purpose of being delivered to the OABI for what is appropriate under the Law. If the property is incorporated into a title, the annulment of the same shall be decreed and the issuance of a new one in the name of the OABI. Likewise, the nullity of those contracts and registrations that were made in violation of the Law shall be declared. In case of declaring lack of merits, it shall order the revocation of the precautionary measures decreed and their return in accordance with this Law; and,

• 8)

  The signature of the judicial authority and the Secretary.

When a judgment is issued ordering the definitive deprivation of ownership and forfeiture of property, products, instruments, or proceeds that require registration in national or private registries, for such registration only the judgment of the Judicial Body shall be necessary so that these may be registered in favor of the OABI. The registrations or transfers referred to in this Law shall not be subject to the payment of taxes, fees, rates, and charges for transfers, nor to the payment of stamps or rights for transfers or registration. When it is a matter of motor vehicles, vessels, aircraft, or others that must be registered and present alterations that make their corresponding registration impossible, the authority to whom it corresponds shall assign them a special identification for their proper individualization and their registration in favor of the OABI. The property referred to in this paragraph may only be used or assigned to the State and its alienation or substance is prohibited.

In cases in which property that is being administered by the OABI accrues taxes to be paid, these shall not generate default interest during the period in which the process of definitive deprivation of ownership is pending. During this period of duration of the process, the procedure to initiate tax proceedings shall be suspended. If the definitive deprivation of ownership of the property is declared, the OABI shall be exonerated from payment of the pending tax amount to be paid. In no case shall the State, through the OABI, assume or make payments of tax obligations originated or accrued prior to the seizure.

The expenses that are generated on occasion of the proceeding for the action of definitive deprivation of ownership, as well as those presented by the administration of property in the OABI, shall be paid from the financial returns of the property, products, instruments, or proceeds that have been received by said OABI, shall be paid from the financial returns of the property, products, instruments, or proceeds that have been received by said institution, unless the judgment declares the action for definitive deprivation of ownership to be without merit. For the registration of the property, the OABI shall be exempt from the payment of taxes for any reason.

If the final judgment declares that the action for definitive deprivation of ownership is without merit, it shall be ordered that the precautionary, cautionary, or securing measures that may have been decreed be revoked and it shall be ordered that they be returned. If it is cash money, the return shall include the principal plus the interest generated, calculated in accordance with those of the principal plus the interest generated, calculated in accordance with those of the National Financial System registered by the Central Bank of Honduras in the month prior to the return.

The property that is subject to a cautionary or securing measure shall be placed at the disposal of the OABI for its administration, custody, and safekeeping or destruction when necessary, with the OABI in the latter case being required to convene the competent authorities so that they may bear witness to the action. The OABI, for the administration of cash money, securities, monetary resources, and others, shall open accounts at financial institutions, distributing them in the order for money subject to precautionary measures and money upon which it has received a final judgment of deprivation of ownership. In both cases, cash money shall be deposited in bank accounts in favor of the OABI. Monetary resources or securities shall also be deposited in these accounts, those derived from the sale of perishable goods, movable property by nature, and those obtained from the sale or early alienation of property. The returns generated in these accounts shall be distributed in accordance with this Law, in case a judgment of deprivation of ownership is issued. Immovable property shall be administered in accordance with what the OABI establishes. With regard to property that warrants special care, such as motor vehicles, the OABI may use State facilities for its custody and safekeeping. The OABI may lease or enter into other contracts that maintain the productivity and value of the property or ensure its use in favor of the State. The returns obtained from these activities shall also be distributed in accordance with this Law in the case that a judgment of deprivation of ownership is issued.

Fungible, generic, and/or movable property that is at risk of perishing, pending, becoming more expensive, or depreciating, or whose administration entails prejudice or disproportionate costs for the State at the time of returning it in any case or are unserviceable when a judgment of deprivation of ownership is issued, may be alienated, auctioned, or sold early by the OABI seeking to obtain the greatest return. The same shall apply when it is a matter of livestock or other animals. The alienation, auction, and early sale referred to in this Law shall be authorized by the Judicial Body, by means of a request that the OABI shall make with the knowledge of the General Prosecutor and of UCLA.

Property whose definitive deprivation of ownership has been declared or therefore forfeited, and is found in a state of complete deterioration that makes its repair or improvement impossible or excessively burdensome, the OABI, by means of a duly reasoned resolution, shall proceed to auction it or donate it as it deems convenient, prior authorization from the General Prosecutor and with a report to UCLA. When it is a matter of movable property that presents alterations in its identifications, the OABI in order to make the donation or auction shall comply with the provisions of the third paragraph of Article 67 of this Law.

In the cases of property, products, instruments, or proceeds that are being administered by the OABI or are at its disposal and no resolution that defines their legal status has been issued, it may, with prior knowledge of the General Prosecutor and the Court of Accounts, authorize the provisional use of seized property or property with precautionary measures, which by their nature require being used to prevent their deterioration. The provisional use of this property shall be authorized when a damage or fire insurance or other casualty insurance policy has previously been taken out against it. The insurance shall have the purpose of guaranteeing compensation for deterioration or destruction when the characteristics and value of the property so warrant. It is understood that the expenses incurred for the contracting of the policy or insurance shall be paid by the institution or organism to which it is assigned. The procedure to be followed for the assignment and its compliance shall be in accordance with the Regulations of the OABI issued for the effective application of this Law.

CREATION OF SPECIAL FUND. The Special Fund for Social Prevention and Fight Against Organized Crime is hereby created, which shall consist of a special account opened in a Financial System institution in the name of OABI and administered by it. This fund and other assets administered by OABI shall be supervised by an auditor assigned to the Special Prosecutor's Office Against Organized Crime, who shall report directly to FESCCO, and when required, to the Attorney General. The auditor referred to in this Article shall be appointed by the Attorney General and the same requirements established to be Director of OABI shall be required for his appointment, according to the Regulation of this Office.

DUTY OF OABI TO SUBMIT REPORTS. OABI, without prejudice to the report it must send to the auditor assigned to FESCCO, shall submit to UCLA a detailed report on the management of assets. Likewise, it shall send a complete copy of each file in which it makes management decisions regarding requests presented to it with respect to the management of assets.

AUCTION AND ALLOCATION OF ASSETS IN FORFEITURE OR SEIZURE. Assets, products, instruments or proceeds, which are subject to a declaratory judgment of definitive deprivation of ownership and consequently forfeiture or seizure of these, shall be auctioned when appropriate or otherwise shall be allocated to the institutions that UCLA designates. In cases where it corresponds to auction the assets, products, instruments or proceeds, OABI shall do so within ten (10) days following receipt of the final judgment from the Judicial Body declaring the deprivation of ownership of the assets, products, instruments or proceeds. When assets are allocated, they shall be distributed by OABI in the following manner:

• 1)

  Forty-five (45%) percent for units that directly work in the fight against organized crime, assigned to the State Secretariats in the Offices of Security, National Defense, Public Ministry and that have participated in the investigation, identification and seizure of assets, products, instruments or proceeds, which have received a final judgment of deprivation of ownership. When multiple units participate, said percentage shall be distributed equally. The Judicial Branch shall be included in the distributions made in accordance with this Article. Likewise, in the distribution of this percentage, any unit at the national or foreign level that may have participated in the investigation, identification and seizure of assets, products, instruments or proceeds referred to in this Law may be included.

• 2)

  Eight percent (8%) for OABI for its maintenance and procedural expenses under this Law;

• 3)

  Eight percent (8%), for institutions that work on programs serving victims of illicit activities contemplated in this Law, or their reparation if applicable;

• 4)

  Four percent (4%) for the allocation of Witness Protection Programs;

• 5)

  Ten percent (10%) for the natural person who timely and effectively contributed or provided probative elements that served to issue the declaratory judgment of deprivation of ownership. In case of several persons who contributed, OABI shall make the division of the percentage. Information about this collaboration shall be provided to UCLA;

• 6)

  Ten percent (10%) to the Municipalities where the assets subject to definitive deprivation of ownership are located. If there are multiple Municipalities, the benefit shall be divided among all of them. Said percentage shall be used for the recovery of public spaces and implementation of pilot projects for environmental spaces of coexistence;

• 7)

  Ten percent (10%) for programs and assistance centers that work on prevention and rehabilitation of youth with addiction problems such as: drug addiction, alcoholism and substance abuse, distributed proportionally by the State Secretariat in the Office of Health, so that said Ministry prioritizes and allocates amounts to centers it deems appropriate; and,

• 8)

  Five percent (5%) to the Special Fund for Social Prevention and Fight Against Organized Crime. In this fund shall be deposited, in turn, the percentage corresponding to numerals 5) and 3) of this Article when its distribution is not executed.

INTERNATIONAL COOPERATION. The competent judicial bodies, the Public Ministry, the Central Bank of Honduras, the National Banking and Insurance Commission, and other competent authorities, making use of mechanisms of memoranda of understanding, agreements, treaties and fully applicable international agreements, may request and provide mutual legal cooperation or assistance to other countries in relation to the matter provided by this Law.

RETROACTIVITY OF THE LAW. The definitive deprivation of ownership shall be declared, regardless of the time of illicit acquisition or destination of the assets, products, instruments or proceeds, if the causes provided in Article 11 of this Law are present.

SPECIALTY OF THE LAW. This Law has preeminence over any other law that contradicts or opposes it, so that when a conflict of laws or norms with the precepts it provides might arise, it shall be applied and interpreted over any other Law.

PROCESSING OF REQUESTS PRIOR TO EFFECTIVITY OF THE LAW. Extinction requests that have been filed in accordance with the Law Against the Crime of Money Laundering (Decree No. 45-2002 of March 7, 2002) and that are pending shall continue to be processed in accordance with the procedure established in this Law. This same procedure shall be followed with those assets, products and instruments that are at the disposal of OABI and that are included in the causes referred to in this Law.

AUTHORITY TO APPOINT LEGAL PROFESSIONALS OF THE PUBLIC DEFENDERS OFFICE. In cases where the Judicial Body requires the appointment of ex officio legal representatives for holders of real or accessory rights, it shall have available the legal professionals assigned to the Public Defenders Office.

For purposes of the applicability of this Law, the Supreme Court of Justice, within twenty (20) days following publication of this Law, must create the corresponding judicial structure.

REPEAL. Articles 24, 25 and 26 of the Law Against the Crime of Money Laundering are hereby repealed.

EFFECTIVITY. This Law shall become effective twenty (20) days after its publication in the Official Gazette La Gaceta. Done in the city of Tegucigalpa, municipality of the Central District, in the Hall of Sessions of the National Congress, on the fifth day of the month of May of two thousand ten. LENA KARYN GUTIÉRREZ ARÉVALO PRESIDENT GLADIS AURORA LÓPEZ CALDERÓN SECRETARY ELISEO NOEL MEJÍA CASTILLO SECRETARY To the Executive Branch. Therefore: Execute. Tegucigalpa, M.D.C., May 31, 2010. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The Secretary of State in the Offices of Governance and Justice. CARLOS ÁFRICO MADRID HART Legislative Branch DECREE No. 28-2010 THE NATIONAL CONGRESS, CONSIDERING: That the Internal Regulation of the National Congress establishes that sessions are held in the Legislative Palace, and may also be held in another location and in any place of the Republic where it is called by the Board of Directors, if circumstances require it. CONSIDERING: That from May 17 to 23 the election of the Excellence Rate shall be taking place in the city of Marcala, department of La Paz, and that this event is very significant for the country's economy. THEREFORE, DECREES:

Declare Temporary Headquarters of the National Congress on Wednesday, May 19 of the present year, in the city of Marcala, department of La Paz. The Presidency of the National Congress shall set the Order of the Session and the corresponding Order of the Day.

To present a Parchment to Mr. Fabio Caballero, owner of La Finca "La Isabela", producer of coffee that was awarded third place worldwide.

This Decree shall become effective as of the day of its approval and must be published in the Official Gazette La Gaceta. Done in the city of Tegucigalpa, municipality of the Central District, in the Hall of Sessions of the National Congress, on the eighteenth day of the month of May of two thousand ten. LENA KARYN GUTIÉRREZ ARÉVALO PRESIDENT GLADIS AURORA LÓPEZ CALDERÓN SECRETARY ELISEO NOEL MEJÍA CASTILLO SECRETARY To the Executive Branch. Therefore: Execute. Tegucigalpa, M.D.C., June 9, 2010. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The Secretary of State in the Offices of Governance and Justice. CARLOS ÁFRICO MADRID HART