3 2 . D E P R E C I A T I O N , A M O R T I Z A T I O N A N D I M P A I R M E N Ta) Depreciation and amortizationAs of December 31, 2010 and 2009, the effect of amortization and depreciation expense by type of asset is as follows:At December 312010At December 312009MCh$ MCh$Depreciation of property, plant and equipment (1,232) (1,274)Amortization of intangibles (1,470) (1,161)Impairment:Investment instruments - -Property, plant and equipment - -Intangibles - -Total depreciations, amortizations and impairment (2,702) (2,435)3 3 . O T H E R O P E R A T I N G I N C O M E A N D E X P E N S E Sa) Other operating incomeDetails of operating income in the consolidated statement of income are as follows:At December 312010At December 312009MCh$ MCh$Income from assets received in lieu of payment 247 443Release of provisions for contingencies 611 439Income from sale of property, plant and equipment 228 320Rent received 244 253Recovery of assets received in lieu payment written-off 248 566Recovery of expenses 571 528Other income 860 1,436Total other operating income 3,009 3,985b) Other operating expensesDetails of operating expenses in the consolidated statement of income are as follows:At December 312010At December 312009MCh$ MCh$Provisions and expenses for assets received in lieu of payment (2,091) (1,519)Provisions for contingencies (945) (1,249)Operating write-offs (875) (512)Other expenses (408) (230)Total other operating expenses (4,319) (3,510)
117P A G E10 financial statements3 4 . T R A N S A C T I O N S W I T H R E L A T E D P A R T I E SRelated parties are considered to be individuals or corporations with direct or third-party interest in the ownership of the Bank and itssubsidiaries, when that interest exceeds 1% of the bone’s shares, or 5% if the Bank’s shares are traded in the stock market. They alsoinclude individuals that, despite not having any ownership interest, have authority and responsibility in the planning, managementand control of the activities of the Bank or its subsidiaries. Companies where the Bank’s related parties have an interest of 5% ormore, or where they hold a position as director, general manager or other equivalent position, are also considered related parties.Article 89 of the Corporate Law, which is also applicable to banks, stipulates that any related party transactions must be carried outunder conditions of equality, similar to those normally prevailing in the market.Furthermore, Article 84 of the General Banking Law stipulates limits for loans that can be granted to related parties and the prohibitionto grant loans to directors, managers, or general representatives of the bank.a) Loans granted to related partiesLoans and accounts receivable, contingent loans, and the assets involved in instruments held for trading and available for saleinvestments involving related parties are shown below:ProductioncompaniesInvestmentcompaniesIndividualsTotal2010 2009 2010 2009 2010 2009 2010 2009MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$ MCh$Loans and accounts receivable:Commercial loans 40,647 28,014 88 3,731 846 499 41,581 32,244Mortgage loans - - - - 2,544 1,315 2,544 1,315Consumer loans - - - - 92 32 92 32Loans and accounts receivable, gross 40,647 28,014 88 3,731 3,482 1,846 44,217 33,591Provisions for loans (231) (87) - (10) (12) (8) (243) (105)Loans and accounts receivable, net 40,416 27,927 88 3,721 3,470 1,838 43,974 33,486Contingent loans:Total contingent loans 3,923 2,813 - 1,149 - - 3,923 3,962Provisions for contingent loans (25) (8) - (6) - - (25) (14)Contingent loans, net 3,898 2,805 - 1,143 - - 3,898 3,948InvestmentsTrading - - - - - - - -Available for sale - - - - - - - -Total investments - - - - - - - -Total loans with related parties 44,314 30,732 88 4,864 3,470 1,838 47,872 37,434