THE CUBA REVIEW 11 



Proposed General Banking Law, Including 

 Reserve Bank Act 



Report of Doctors Cosme De La Torriente and Santiago Gutierrez 

 De Celis to the National Commission on Banking Legislation 



(Translation by L. L. Gonzalez) 



{Continued from the September Issue of The Cuba Review) 



TITLE III 



On Banks in General 



72. Banks are establishments or institutions which do business with money and 

 with credit and which have as their principal business the receiving of money on deposit, 

 carrying accounts current and savings accounts and making loans. Regular collective 

 partnerships or partnerships in commendam and stock companies may establish a bank- 

 ing business, provided that in their operations and organization they adjust themselves 

 to the provisions of this Law. Private individuals may also establish private banks 

 according to this Law. Corporations shall be governed by their by-laws. The President 

 of the corporation or his substitute, shall be its legal representative in all judicial and 

 extrajudicial acts and should reside in Cuba. 



On the Se\^ral Classes of Banks and Their Characteristics 



73. The following banks may be established: (a) Commercial Banks; (b) Agri- 

 cultural Credit Banks; (c) Mortgage Banks; (d) Saving Banks; (e) Clearing Houses 

 or institutions for the compensation of checks and accounts. Said banks may not 

 devote themselves to any other operations than those which this Law expressly desig- 

 nates for them. Nevertheless, in the event that one of the above-mentioned banks 

 desires to devote itself to transactions which are proper for another class of banks, it 

 should make the request to the National Banking Commission, which shall require that 

 it prepare special departments and accounting for so doing and shall indicate the other 

 conditions that it may deem necessary. 



On Commercial Banks 



74. The Commercial Banks shall have the following functions: (a) To receive 

 deposits of money on accounts current with the obligation of returning the same as soon 

 as demanded, and to receive also savings deposits with the obligation of returning them 

 provided the bank has been notified at least 30 days before, or with the anticipation 

 that has been agreed upon, which shall not exceed one year. 



(b) To draw and issue bills of exchange. 



(c) To discount negotiable instruments, the maturity of which, at the time of 

 making the discount, shall not be over 90 days. 



(d) To make loans to merchants, manufacturers and owners of real property 

 with one only guaranteeing signature for a period not in excess of 90 days; and they 

 may also make loans to individuals, with two signatures and also for a period of time 

 not to exceed 90 days; they shall also make loans up to 180 days to agriculturists or 

 on agricultural business, but they shall not invest more than 30% of their deposits in 

 the last mentioned loans. 



(e) To grant loans with only one signature and for a period not over 90 days 

 with pledge of securities quoted on the Exchange. 



(f) To open commercial credits in foreign countries with the proper security, and 

 to make payments in Cuba by virtue of credits opened abroad by solvent correspondent 

 banks; to issue letters of credit to individuals on other markets with the proper 



