THE CUBA REVIEW 



shall establish a procedure which will permit the representation of the different elements 

 of the banking institutions of the republic on the Board of Directors. When the 

 members of class "B" are elected, their substitutes shall be elected in the same manner. 



32. The members of class "B" shall be elected each year and in order to hold 

 this ofiSce it shall not be necessary to be a citizen of Cuba. 



ZZ. No person who holds public office by election or any office for which he shall 

 receive compensation from the State, the Province or the Municipality, or who is a 

 partner or mem.ber of the Board of Directors of some bank, banking house or savings 

 society which operates in the republic, or who is Manager, Director or employee of any 

 of said institutions, may be a member of the Board of Directors. 



34. The management and direction of the bank will be exercised by the Board 

 of Directors, which will have sufficient authority for that purpose within the limitations 

 and conditions established in the present Law. The judicial and extra judicial represen- 

 tation will be invested in the President of the Board of Directors in accordance with 

 the By-laws. 



35. The Board shall have a President, a Vice-President and a Secretary who shall 

 be elected by majority vote by the members of classes "A" and "B." This election 

 shall be held each year after the members of the Board have been renewed. 



36. The Board of Directors shall appoint an Executive Committee consisting of 

 three members, one of which shall be the President of the Board, and the other two 

 shall belong, one to class "A" and the other to class "B." Said committee shall be 

 appointed each year after the election of the President of the Board has been held 

 and it shall have the powers and duties established in the By-laws. 



By-Laws 



37. The Board of Directors shall draw up the By-laws of the bank, submitting 

 the same to the President of the Republic for approval, the same procedure to be 

 followed in the case of future modification of the same. The President, before deciding, 

 shall hear the opinion of the National Banking Commission. 



38. The By-Laws shall fix the salaries and compensation to be received by the 

 members of the Board of Directors and senior employees of the bank, and shall determine 

 upon the form of its interior organization, the duties of the Department heads and 

 other employees and everything that has reference to the management, operation and 

 regime of the bank, including the amount of surety that should be demanded. 



Banking Reserves 



39. All the banks, bankers and savings societies organized in Cuba, which are 

 not subject to the provisions of the Law of January 31, 1921, and all the branches 

 or agencies of foreign banks doing business within the national territory, shall be 

 obliged to have on deposit at the Reserve Bank of Cuba, in any legal currency but 

 not in notes of the Reserve Bank itself, a net balance of not less than seven (7%) 

 per cent, of its deposits in Cuba, payable on demand or on less than thirty days' notice, 

 and of three (3%) per cent, of its deposits in Cuba payable on not less than thirty 

 days' notice. At the same time said banks, bankers, savings societies, branches and 

 agencies will have the right to carry on all transactions of rediscount and loan with 

 the Reserve Bank of Cuba, as are authorized by the present Law. 



40. The amounts which the banks, bankers, savings societies and branches or 

 agencies of foreign banks have on deposit with the Reserve Bank of Cuba, in compliance 

 with the preceding section, shall be considered for all legal purposes, as if they were 

 a reserve in their own vaults. Any banking institution may withdraw, subject to the 

 rules and penalties established by the Board of Directors, the deposits which it has 

 at the bank in compliance with what is provided in section 39 of the present Law, 

 in order to meet its obligations, but in this case it may not make any loans nor pay 

 dividends until it shall have returned to the Reserve Bank of Cuba the net deposit 

 demanded in said section 39. 



