o. THE 
CUBA REVIEW 
ALL eAbOwUt CUBA 
Copyright, r92r, by the Alunson Steamship Line 
VOLUME XIX MARCH. 1921 NUMBER 4 
CUBAN ACT CREATING A TEMPORARY BANKING 
LIQUIDATION COMMISSICN 
The following. in substance, is the translation of the text of a law, known as the 
Torriente Law No. 2, passed by the Cuban Senate and recently signed by the Cuban 
President, creating a Temporary Banking Liquidation Commission : 
Art, I. The provisions of this act are applicable to credit companies and to banks 
of issue and discount referred to in Sections VII and VIII of Title I, Book II of the 
Code of Commerce in force, and to all such mercantile companies and private bankers 
the principal business of which may be to receive money on deposit and to keep current 
accounts with or without interest and savings deposits with any corporation, company, 
or persons. 
Whenever the word bank is used in this act it must be understood as referring to 
all or any of the companies. corporations, and persons mentioned in this article. 
ArT. II. There is hereby created a commission to be composed of three members, 
which shall be known as the Temporary Banking Liquidation Commission, and when- 
ever the word commission is used in this act it must be understood to refer to that 
commission. The members of said commission shall be appointed by the President of 
the Republic. One of them shall be the secretary of the treasury, who will preside 
over the commission, and the other two members shall be persons of known fitness in 
banking matters and not connected in any way with those banks in regard to which 
the commission is to exercise its functions. The commission shall cease in functions 
within 60 days from the final termination of all the business devolving upon it under 
the present act, and all the other instrumentalities created by this act shall cease in 
like manner. 
ArT. III. In any of the cases contemplated by Article V of this act the commission 
shall be authorized and required to take possession of, to control, and administer all 
the property, rights. and rights of action of any kind, cash on hand, and securities, as 
well as assets and liabilities of the bank, to exercise all kinds of actions, to receive 
rents, collect all debts due to the bank under its administration or liquidation, and to 
compromise the same whenever it shall be necessary in its judgment. It is to make 
transfers or cessions of said credits and to contract and enforce obligations in the due 
course of administration of the bank, and generally to do all such acts and carry out 
such measures in connection with all the foregoing as the commission may deem neces- 
Sary to the ends of this act, including the payment of outstanding debts of the bank 
and the distribution of the money and other properties that shall remain over among 
those entitled thereto. All the acts above referred to regarding the administration of 
any bank pursuant to this act shall be carried out with a view either to re-establish 
its solvency within the briefest possible period, or to bring about the final liquidation 
and accordingly the definitive cessation of the same. 
ART. TV. Of the powers vested in and duties imposed upon the commission by 
this act, those relating to the administration and liquidation of any bank under its 
jurisdiction shall be executed through a liquidation board, separately created for each 
such bank, and which shall be under the inspection, direction, and control of the com- 
Mission. Whenever the word board shall be used it must be understood that the same 
refers to the liquidation board. 
ArT. VY. Banks established in the Republic and included in Article I of this act 
43 
