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7. TRUST AND FIDUCIARY RELATIONSHIPSTrust and Fiduciary Relationships are regulated pursuant to Act 921/1996. This Act defines trust andfiduciary relationships and establishes procedures to be upheld to form and execute a trust.The Central Bank of Paraguay is charged with oversight responsibility for all fiduciary or trustinstruments. Only banks and financial institutions may act as trustees. Trust assets may be transferredto the institution acting as trustee or not. Transferred assets form part of a special autonomous fundnot included in the institutions’ assets and therefore not subject to bankruptcy proceedings. The Actalso establishes basic rules that are applicable to the auditing and bookkeeping requirements for trustand moneys.8. MIGRATION ACTAct 978/1996 regulates immigration of foreigners and nationals with the purpose of promotingimmigration and incoming of labor force required by the country.This Act establishes categories of immigrants, on the basis of particular characteristics and theobjectives of foreigners entering the country. Foreigners can become permanent residents under oneof the following categories: spontaneous immigrants, assisted immigrants, immigrants with capital,investors, retirees and those who have independent incomes.The Act creates an interesting concept: “organized immigration”, seeking to facilitate the entry andpermanence in Paraguay of communities that devote themselves to activities that are of interest tothe Nation. It is to be regulated by the Executive Branch, with the intervention of the GeneralMigration Office.In addition, the procedure established to obtain residence is innovative, since it permits a foreignerabroad to initiate immigration procedures through a third party who may submit the requireddocuments to the General Migration Office.9. LABOR LEGISLATIONParaguayan labor legislation is based on the Labor Code, adopted by Act 213/1993. Parties subject tothe provisions contained in the Code are employees with intellectual, manual or technical skills in adependency relation, and their employers; teachers of private academic institutions and thoseperforming sport or professional activities; labor unions and employers of the private sector; and,employees of State and Municipal offering goods and services. All other State employees, or those15Berkemeyer Attorneys and Counselors | Asunción - Paraguay