Law 1676 of 2013 that promotes access to credit and regulates the movable warranties, will be in force as of February 21st, 2014.
Following our last Legal Updates related to Law 1676 of 2013 that promotes access to credit and regulates the movable warranties, these are some of the changes included in the referred Law that are not specifically related to movable warranties:
- The term to reject an invoice was reduced from the term set forth in Law 1231 of 2008. Please note that the invoice is deemed irrevocably accepted by the buyer or recipient of the service, if he does not return or reject in writing the invoice to the supplier of the good of service within the next three (3) business days as of the receipt of the invoice. The former term was of ten (10) calendar days as of the receiving of the invoice.
- In accordance with the provisions of Law 1676 of 2013, any act of the buyer of the good or service that prevents the free circulation of the invoices, shall constitute a restrictive competition practice that shall be investigated and sanctioned by the Superintendence of Industry and Commerce.
- As per Law 1676 of 2013, managers (e.g. Legal representatives or members of the Board of Directors) shall include in the annual management report a reference indicating that they did not interfere with the circulation of invoices issued by sellers or suppliers. The statutory auditor in his annual report shall refer to the fulfillment of the mentioned duty.
- Regarding the factoring activity, Law 1676 of 2013 pointed out that this activity can only be provided by legal entities (personas jurídicas), that must take all measures and methodologies and procedures necessary to prevent that those factoring operations can be used as handling procedures, or investment of money from criminal activities or used for its funding. Aa. Likewise, the Law 1676 of 2013 establishes that companies whose sole business is to perform factoring operations, only may execute specific orders on behalf of third parties, for the acquisition of invoices, up to an amount equivalent to 10% of assets that factoring company has registered.
These are some of the relevant changes included in the referred Law that are not specifically related to movable warranties. Any further information in connection with this new legal provision or questions related hereto please do not hesitate to contact us.