24 THE CU B A RE V I E JV 



23. The bank will not commence its operations until shares to the amount of 

 four million dollars ($4,000,000) have been fully paid in. Shares shall in all cases 

 be paid for at par. 



24. In order that the capital stock may be made up of gold coin in accordance 

 with what is provided in section second, the subscriptions of shares shall be made 

 precisely in gold coin of the Republic of Cuba or in gold coin of the United States of 

 America, or in gold certificates, in notes of the Federal Reserve or other notes of the 

 United States of America which, in accordance with the laws of said country, are 

 exchangeable for gold at the Treasury in Washington, and said notes shall be converted 

 into gold coin of the United States of America by the Reserve Bank of Cuba, and the 

 expenses that shall be incurred in forvi'arding the notes to the United States of America 

 and the return of their proceeds in gold coin to the Reserve Bank of Cuba, if said 

 operation should be necessary, shall be charged as general expenses of the institution. 



25. Shares subscribed by the Cuban Government and by the banks, bankers and 

 savings societies and the branches or agencies of foreign banks, by virtue of the 

 obligation imposed upon them by this Law, may not be alienated nor hypothecated. 

 The Board of Directors of the bank shall issue the rules for the change or transfer 

 of the shares subscribed by banks, bankers or savings societies that close their business 

 or withdraw from the republic. 



26. The shares of the Reserve Bank of Cuba shall be exempt from the payment 

 of all taxes of the government, provinces or municipalities of Cuba. 



27. The shares which the banks, bankers and savings societies, including branches 

 or agencies of foreign banks, subscribe and pay for, by virtue of the obligation which 

 this Law imposes upon them, shall be the only shares that shall have voting power. 



Profits and Paying of Dividends 



28. The shareholders shall have the right to receive, in accordance with the 

 profits that there may be, an annual dividend up to 10 per cent, of the par value 

 of the shares that are totally paid in, once all the expenses of the bank have been 

 paid, the losses have been deducted and 10 per cent, of the profits have been placed 

 in a reserve fund. The surplus, if there should be any after said 10 per cent, dividend 

 has been paid shall be applied as follows: 50 per cent, for the bank's reserve fund 

 and the other 50 per cent, for the payment of extra dividends. 



Board of Directors of the Bank 



29. The Board of Directors of the Bank shall consist of nine members divided 

 into two classes, designated as classes "A" and "B." 



Class "A" shall consist of five members who shall be appvointed by the President 

 of the Republic, after having heard the opinion of the Cabinet in session and upon 

 the recommendation of the National Banking Commission. 



In order to be a Director under class "A" it shall be necessary to be a citizen 

 of Cuba and a person of recognized ability in banking matters. 



30. Once the members of class "A" have been appointed, they shall be drawn 

 by lot so that one of them may hold office for one year; another for two years; 

 another for three years; another for four years and another for five years, and the 

 appointments that shall be made subsequently shall be for a period of five years. 

 Vacancies shall be filled in accordance with what is provided with regard to appoint- 

 ments in the second paragraph of section 29 and for the time that the former officer 

 should have held office. 



31. Class "B" shall consist of four members elected by the banks, bankers and 

 savings societies, including the branches or agencies of foreign banks, doing business 

 in Cuba, each institution to have the right to vote in accordance with the number of 

 shares of the Reserve Bank of Cuba that it has subscribed and paid up in accordance 

 with the obligation which this Law imposes upon them. The National Banking Com- 

 mission shall issue the regulations for the election of the Directors of class "B," and 



