Título VIII

For the alienation and transfer of immovable property, movable property or materials, owned by the State or by its autonomous and decentralized entities, as well as for the sale of movable property or materials, the procedure of public auction, public offer or other procedures in which offerors may submit their offers through transparent mechanisms shall be followed, upon prior compliance with the publication requirements and bases prepared for such purpose and with what this Law and its Regulation establish in each case.

For such purposes, it shall be determined by the competent authority, in each case, according to the nature of the property to be alienated, whether the procedures to be followed must be those of a public auction, public offer or other procedures that guarantee publicity of the proceedings and competition among offerors, as in the case of national or international stock markets.

For the alienation and transfer of immovable property owned by the State or by its autonomous or decentralized entities, a Governmental Agreement shall be issued through the corresponding Ministry or Ministries, in the case of State property, or an agreement of the highest authority of the autonomous or decentralized entity, and the following rules shall be observed:

1.The property whose alienation is to be carried out shall be described in detail, including its registry data based on the corresponding certification, and the interested authority shall determine the advisability of the contracting and initiate the processing of the file accompanying the pertinent justifications.

2.That the appraisal of the property be performed by the Ministry of Public Finance.

3.That a governmental agreement be issued, authorizing the contracting, through the Ministry of Public Finance and with the countersignature of the head of the Ministry that initiated the proceeding.

4.It may be agreed, if deemed advisable to the interests of the State or of the alienating entity, [to contract firms] specialized in intermediation with immovable property, to take charge of the execution of the procedure of public offer and auction, or other analogous mechanism subject, in any case, to the rules and conditions whose bases shall be determined in the respective agreement.

5.If deemed advisable to the interests of the State or of the corresponding entity, the contracting of intermediaries of international prestige may be ordered, so that the public offer and auction or other analogous mechanism is also promoted at the international level, complying, in any case, with the general bases governing the alienation.

Decentralized and autonomous entities shall observe the rules established in this article insofar as applicable and the agreement shall be issued by the superior authority of the interested entity.

For the sale of movable property owned by the State, the following rules shall be observed:

1.That the interested authority determine the advisability of the alienation and initiate the processing of the file, accompanying the pertinent justifications;

2.That the appraisal of the property be performed by the Ministry of Public Finance;

3.That the agreement be issued by the superior authority of the interested entity.

Used movable property or materials owned by the State may be transferred to third persons, on account of the price of new acquisitions, with compliance required with what is prescribed in the preceding article.

Special cases of disposition.

I.Contribution to companies to be formed. When the disposition of property is by contribution to companies, the State shall carry it out based on the justification of a higher authority; to do so it shall proceed in accordance with the appraisal made by the Ministry of Public Finance or another [appraisal] deemed appropriate, and a Governmental Agreement shall be issued through the corresponding ministry or ministries, by means of which there shall be ordered:

1.The necessary legal and accounting documentation shall be attached to the contribution of property, in which

2.The amount for which the property is contributed and the number, class, nominal value and other characteristics of the shares that, as a consequence, will be issued, subscribed and paid.

3.The formation of the company shall be executed before the Chamber and Government Notary and the transfer by way of contribution of the corresponding property.

4.The preparation of the Opening General Balance Sheet of the company formed.

5.The appointment of the persons who shall serve as provisional administrators.

6.Once the legal requirements have been met, final registration shall be made in the General Commercial Register of the Republic and in the administrative offices as may correspond according to the Law;

In the case of the contribution of property of autonomous or decentralized entities of the State, the agreement shall be issued by the highest authority and shall comply with the requirements described above.

II.Contribution to companies already formed. In this case the procedure shall be as indicated in the preceding section, except with respect to the draft deed of incorporation and registration in the Commercial Register and other administrative offices.

Execution of the acts and contracts and determination of the fiscal destination of the income resulting from the alienation.

1.When the alienation involves property owned by the State, the execution and granting of the corresponding acts, contracts and documents shall be carried out by the Attorney General.

2.When the alienation relates to property owned by the decentralized or autonomous entities of the State, the execution and granting of the corresponding acts, contracts and documents shall be carried out by the legal representative of the disposing entity.

3.The fiscal destination of the income derived from the alienation, whether definitive or by way of contribution of property of the State or of its decentralized or autonomous entities, shall be determined in the law approving the General Budget of Income and Expenditures of the State, corresponding to the fiscal year or fiscal years in which it is projected to receive the income resulting from the alienations carried out.