THE CUBA REVIEW 27 



government and for all public services, by paying the checks and drafts drawn by 

 authorized Paymasters against funds of the Government on deposit, without charging 

 any compensation nor expenses therefor, except in the case that the bank effects 

 transfers of funds or payments to foreign countries, in which case it shall charge only 

 for the expenses incident to the transaction. 



47. The bank shall be authorized to make loans with notes of the Reserve Bank 

 of Cuba, in accordance with the conditions and requisites established in the present 

 Law, to the banking institutions which have the deposit at the bank as provided in 

 section 39 of this Law, these transactions to be made by means of the rediscoimt of 

 drafts, bills of exchange or promissory notes which shall meet the requirements fixed 

 for this purpose in the present Law. 



48. The bank shall be authorized to make loans with its bank notes, for a period 

 of time not longer than fifteen days, to any banking institution having on deposit at 

 the bank the amount fixed in section 39 of this Law, by accepting the note of said 

 banking institution and provided that it shall deliver, as collateral security, bills of 

 exchange, drafts or promissory notes of the kind which, in accordance with the terms 

 of this Law, may be admitted for rediscount by the bank, or, bonds of the Republic 

 of Cuba. 



49. The Board of Directors shall, from time to time, establish the rates of dis- 

 count which the bank shall charge for all kinds of commercial paper and for loans 

 with collateral security, and on fixing such rates, shall take into consideration the 

 needs of commerce and production and the condition of its reserves. 



50. The bank may buy and sell in the market, either in the republic or abroad, 

 bills of exchange and drafts which bear the indorsement of any bank that is known to 

 be solvent, provided said instruments fulfill the conditions and requisites required by 

 the present Law so that they may be rediscounted by the Reserve Bank of Cuba. 



51. The bank may buy and sell gold in coin or in bullion and may deliver its 

 notes at par in exchange for coined legal tender gold. 



52. The bank may issue commercial bills of exchange on foreign countries or on 

 any of its branches in Cuba and may receive from other banking institutions, for their 

 collection, checks, bills of exchange, notes, drafts and other commercial paper about 

 to mature, charging for this service the commission that may have been stipulated. 



53. The bank may not carry on any other operations than those expressly allowed 

 it by this Law, and it shall be prohibited from making loans or advances of funds to the 

 Government or to the Provinces or Municipalities of the Republic, and it shall not contract 

 loans with the same. 



Branches and Agencies 



54. The bank is authorized to maintain the branches and to appoint the agents 

 or correspondents that it deems proper for its operations, both in the Republic and 

 in foreign countries. 



Bank Notes of the Reserve Bank of Cuba 



55. The Reserve Bank of Cuba may issue bank notes under the conditions estab- 

 lished in this Law, and no other bank, corporation, firm or individual in Cuba may 

 issue notes (billetes) to bearer in any form whatsoever; any other issue that is made 

 will be considered fraudulent and the persons making same shall be prosecuted according 

 to Law. 



56. The notes of the Reserve Bank of Cuba shall constitute a first lien on the 

 total assets of the bank and shall be exchanged, at par value, for gold coin or any other 

 legal tender in Cuba upon presentation at the bank's central office in Havana. Said 

 notes shall not have obligatory circulation among private organizations and indi\iduals 

 Hut shall be received by the State in payment of taxes of all kinds and customs duties. 



57. The bank shall have an Issue Department which shall be under the direction 

 and supervision of a Chief appointed by the Board of Directors, which person must 



