SECTION 642

The company is prohibited from taking itsown shares as collaterals/pledges, directly or indirectly through person acting in his own name but on behalf of the company. P. 177 of 267 Shares taken as pledges/collaterals by the company must be returned to their owner within a period of one (1) year. The refund/return shall be made within a period of two (2) years if the transfer of the pledge to the company is consequent toa universal assignment of assets or a court decision; failing this, the pledge agreement shall automatically be null. The prohibition provided for in this article does not apply to daily operations of credit, microfinance or surety/guarantee insurance institutions duly authorized.