Annual Reporting Requirements For Onerous Use Concession Agreements - Government - Chile Law Articles in English - Mondaq Business Briefing - Books and Journals - VLEX 666650729

Annual Reporting Requirements For Onerous Use Concession Agreements

Author:Mr Juan Mackenna, José Miguel Bustamante and Sophia Bobadilla
Profession:Carey
 
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In the Onerous Use Concession Agreements ("CUO") entered into with the Ministry of National Assets ("MNA"), there is an obligation to annually submit to the latter a "sworn statement of use", as stated in the CUO proforma provided by the MNA in its Ministerial Order N°6 dated August 28, 2013, in its "SIXTEENTH CLAUSE: OTHER OBLIGATIONS OF THE CONCESSIONAIRE Sixteen.Three".

Although according to the text of the proforma, the breach of said obligation may result in fines of up to 1,000 UF (39,100 USD approximately), the collection of the guarantees and even the early termination of the CUO, the generality of concessionaires currently do not comply with their annual obligation.

A lawyer in the Legal Division of the MNA, indicated that many concessionaires are currently in default of said obligation, and in order to remedy these violations, it is recommended that concessionaires submit a sworn statement of use for the current year along with a letter (i) explaining the reasons for the delay...

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