26 T HE CUB A REV lEW 



41. The Reserve Bank of Cuba shall always settle in legal currency and never 

 with its own notes, those balances which appear on the deposit accounts which are 

 kept at said bank, by virtue of the requirements of the present Law, by the banks, 

 bankers, savings banks and branches or agencies of foreign banks. 



42. The Board of Directors of the bank shall have authority to remit to the 

 United States, in order that they may be exchanged for gold, the notes of said country 

 which the bank may have in its possession, the expenses of said transaction to be 

 charged to its expense account. 



Reports and Inspection of the Banks 



43. The Board of Directors of the bank, before accepting the deposit and granting 

 the right of rediscount mentioned in article 39 to any bank, banker, savings societies 

 or branch or agency of foreign banks doing business in Cuba, shall take into considera- 

 tion the financial situation of said entity and the general character of its management 

 and also its by-laws, in order to see whether these are in contradiction with any of 

 the provisions of the present Law. If any of the above referred banking institutions 

 do not fulfill all of the conditions which in the judgment of the Board of Directors of 

 the Bank are necessary for doing business with the Reserve Bank of Cuba, the measures 

 to be adopted by the institution shall be communicated to it by the said Board of 

 Directors in order that it may be permitted to undertake said operations, and if within 

 a period of six months it has failed to fulfil said requisites, the Board of Directors 

 shall place the matter before the National Banking Commission, with all the details 

 of the case, in order that it shall take all the steps necessary to compel said institution 

 to fulfil the conditions pointed out by said Board of Directors. The institution that 

 should find itself unable or that should refuse to fulfil the requisites demanded within 

 the period of time granted by the Commission, shall not continue its operations and 

 the provisions of the present Law which refer to the closing or suspension of banks 

 and savings institutions shall be applied to it. 



44. All the banks, bankers, savings banks and branches or agencies of foreign 

 banks that have obtained authorization for doing business with the Reserve Bank of 

 Cuba, shall be obliged to report to the same on their situation, with certified copies and 

 sworn statements, at least three times a year, on the dates and with mention of the 

 details which the Board of Directors of the bank have indicated. If ten days from 

 the date that has been fixed for the presentation of said reports the same have not 

 been received, the institution incurring in the delay shall be obliged to pay a fine of 

 one hundred dollars for each day that shall pass until said requisite has been fulfilled. 

 In addition to the obligation of presenting said reports, said banks, bankers, savings 

 banks and branches or agencies of foreign banks, must submit themselves to the 

 inspections which the Board of Directors of the Reserve Bank of Cuba may deem 

 necessary to make in the same, and the Board of Directors with the approval of the 

 National Banking Commission, shall prescribe the proper instructions for said inspections. 

 The Board of Directors of the bank may suspend rediscount operations with any insti- 

 tution, when in its judgment this action is justified and it shall require said institution 

 to comply with the conditions which the Board of Directors indicates in order that 

 it may continue its business with the Reserve Bank of Cuba, and it shall report the case 

 to the National Banking Commission, which shall have authority even to close down 

 said institution. 



Functions and Operations of the Reserve Bank 



45. The Reserve Bank of Cuba shall be the depositary of the funds and secur- 

 ities of all kinds of the Cuban government, excepting those that the Secretary of the 

 Treasury shall order to be kept in the vaults of the General Treasury of the Republic. 

 These funds and securities may not be used by the bank in any class of operations nor 

 shall they be included as a part of the reserves of the bank. 



46. The bank shall have charge of making disbursements on account of the 



