THE CUBA RE V I E W 29 



actions or with cattle as security, provided that the total rediscounted with maturities 

 of a period greater than 90 days shall not be in excess of 15% of the outstanding total 

 loans and rediscounts made by the Reserve Bank. 



Fourth: That it has been proved to the satisfaction of the Reserve Bank that the 

 transaction which has given rise to the promissory note, draft or bill of exchange which 

 is offered it for rediscount, is of the nature described in the first paragraph of the 

 present article; and that in the cases in which the bank so requests, the institution that 

 presents the document for rediscount shall offer satisfactory evidence as to the solvency 

 and favorable situation of the drawer or of the drawee of the promissory note, draft 

 or bill of exchange. 



Fifth: That the total amount of the promissory notes, drafts or bills of exchange 

 with the signature or endorsement of the same person, company or firm rediscounted 

 shall not be in excess of 10 per cent, of the paid in capital and surplus of the institution 

 that presents them for rediscount to the Reserve Bank of Cuba, this limitation not being 

 applicable to the discount of bills of exchange drawn in good faith against actually 

 existing values. 



64. The rediscounting of promissory notes, drafts and bills of exchange shall be 

 subject to the restrictions, limitations and rules which shall be fixed in the By-laws of 

 the bank or which may be established by resolutions of the Board of Directors. 



65. The bank shall not be obliged to effect rediscounts or loans which are re- 

 quested of it, when, for any reason, it does not deem it convenient to do so, and it shall 

 not grant privileges, preferences or advantages to any banking institution. 



66. The time of maturity of the rediscounted instruments or those accepted as 

 security by the bank shall not be extendable, and the institution which does not fully 

 pay its obligations on the date of their maturity shall be excluded from doing business 

 with the Reserve Bank of Cuba -until the Board of Directors shall lift such prohibition. 



67. The banking institutions which rediscount documents with the Reserve Bank 

 of Cuba shall be obhged to indemnify the damages or losses which may be caused by 

 said documents by virtue of negligence or wilful intent, without prejudice to the 

 penalties which those responsible for such acts may incur according to Law. 



Statements and Reports 



68. The bank shall prepare, at the end of each fiscal year, a general statem^ent 

 which shall be inspected and certified by accountants appointed by the National Bank- 

 ing Commission, which may also require at any time that an examination be made 

 likewise by accountants of the condition of the bank, and the expenses incurred in said 

 inspections shall be charged to the bank. Said general statement shall be published 

 in the Official Gazette. 



69. The bank shall publish, in addition thereto, every week, in the Official Gazette, 

 a statement showing its situation, in which shall appear in detail, its assets and liabili- 

 ties and complete information of all the kinds of money which it has on hand as reserves 

 and the amount, nature and maturity of the documents and other securities which the 

 bank owns or holds. 



70. At the end of each fiscal year the Board of Directors shall render a report on 

 the operations of the bank during the year, with all proper details, to the President of 

 the Republic and to Congress, and this report shall be immediately published by the 

 bank as an official document. 



Organization Committee 



71. The National Banking Commission, as soon as established, shall have charge 

 of all the work necessary for the organization and establishment of the Reserve Bank 

 of Cuba, in accordance with what is provided in the present Law, and it shall cease 

 to discharge these functions as soon as the Board of Directors of said bank has been 

 duly constituted. In order to meet the expenses which will be incurred in the organ- 

 ization and establishment of the bank, an appropriation of twentj'-five thousand dollars 



