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Contingencies and Commitments

12 Months Ended

Dec. 31, 2019

Contingencies and Commitments [Abstract]

NOTE 23

CONTINGENCIES AND COMMITMENTS

a)	Lawsuits and legal procedures

As of the issuance date of these financial statements, the Bank and its affiliates were subject to certain legal actions in the normal course of their business, As of December 31, 2019, the Bank and its subsidiaries have provisions for this item of Ch$1,274 (Ch$923 million as of December 31, 2018) which is included in "Provisions" in the Consolidated Statements of Financial Position as provisions for contingencies.

b)	Contingent loans

The following table shows the Bank's contractual obligations to issue loans:

	As of December 31,
	2019		2018
	MCh$		MCh$
Letters of credit issued		140,572		223,420
Foreign letters of credit confirmed		70,192		57,038
Performance guarantee		1,929,894		1,954,205
Personal guarantees		451,950		133,623
Total contingent liabilities		2,592,608		2,368,286
Available on demand credit lines		8,732,422		8,997,650
Other irrevocable credit commitments		485,991		327,297
Total loan commitment		9,218,413		9,324,947
Total		11,811,021		11,693,233

c)	Held securities

The Bank holds securities in the normal course of its business as follows:

	As of December 31,
	2019		2018
	MCh$		MCh$
Third party operations
Collections		90,966		99,784
Transferred financial assets managed by the Bank		21,507		26,262
Assets from third parties managed by the Bank and its affiliates		1,592,845		1,630,431
Subtotal		1,705,318		1,756,477
Custody of securities
Securities held in custody		9,731,894		11,160,488
Securities held in custody deposited in other entity		1,206,541		861,405
Issued securities held in custody		21,636,819		12,335,871
Subtotal		32,575,254		24,357,764
Total		34,280,572		26,114,241

During 2019, the Bank classified the portfolios managed by private banking in "Assets from third parties managed by the Bank and its affiliates" (memo account). At the end of December 2019, the balance for this was Ch$ 1,592,810 million (Ch$ 1,630,396 million at December 31, 2018).

d)	Guarantees

Banco Santander-Chile has an integral bank policy of coverage of Official Loyalty N°5014196 in force with the company Compañía de Seguros Chilena Consolidada S.A., coverage for 50,000,000 USD per claim with an annual limit of 100,000,000 USD, which covers both the Bank and its subsidiaries, with an expiration date of June 30, 2020, which has been renewed.

Contingent loans and liabilities

To satisfy its clients' needs, the Bank took on several contingent loans and liabilities that are not be recognised in the Consolidated Financial Statements of Financial Position; these contain loan risks and they are, therefore, part of the Bank's global risk.