Colombian Commercial Code - Decree 410 of 1971 - Book III - Of Commercial Property - Title I - Business Establishment - Chapter II - Establishment of Trade Operations - From: Section 525 By: Art 533

COLOMBIAN COMMERCIAL CODE

CHAPTER II

Commercial establishments Operations

Article 525 .- The sale of a business establishment in any capacity is presumed to be made in block or as an economic unit without specifying in detail the elements that comprise it.

Article 526 .- The sale will be recorded in a public or private document recognized by the grantors to the competent official to produce effect between the parties.

Article 527 .- The transferor must give the purchaser a balance sheet accompanied by a list of passive discrimination, a certified public accountant.

Article 528 .- The transferor and the acquirer of the establishment shall be jointly liable for all obligations to be incurred until the sale in the development of activities that is intended to establish, and that are included in the obligatory books of accounts.

The responsibility of the seller cease within two months from the date of the registration of the sale in the commercial register have been met if the following requirements:

1. Has been given notice of the sale to creditors by radiogram or any other written evidence;

2. Has been given notice of transfer is generally to creditors in a newspaper of the capital of the Republic and local one if any two widely circulated, and

3. That within the term indicated in paragraph one does not have opposed the creditors to accept the transferee as the debtor.

Paragraph .- The creditor of the seller does not accept the purchaser and the debtor must register the opposition in the commercial register within the time period is given in this article.

Article 529 .- The obligations that are not in the books of accounts or transfer document will remain in charge of the establishment of the seller, but if the acquirer does not sample good faith free of guilt, jointly and severally liable with that of those obligations.

Article 530 .- The opposing creditors will be entitled to the guarantees or assurances of the case for payment of their loans and if they are not provided timely, shall be due even term obligations. This right may only be exercised within two months from the date of registration of the transfer of the establishment.

Article 531 .- If the sale is filed based on the books and prove these inaccuracies involving a lower value of the property transferred, the transferor shall reimburse the purchaser the difference in value from such inaccuracies, without prejudice to compensation that may be required .

Regulation of the difference in value and the damage will be done by experts.

This action prescribes in six months.

Article 532 .- The pledge of a business establishment may be made without divestment of the debtor.

A lack of provision will be considered as pertaining to the garment all the elements identified in section 516 with the exception of assets.

When the garment is extended to such assets, which have been sold or will be used as surrogates for those who produce or acquire in the course of the activities of the establishment.

Article 533 .- Trade establishments may be subject to usufruct antichresis lease and any transfer operations, limit or alter the property or the right to manage the requirements and subject to the penalties set out in Article 526.