12 THE CUBA REVIEW 



security; and to receive for collection and to collect all kind of commercial and nego- 

 tiable paper. 



(g) To use part of its capital, when it so deems convenient, for the purchase of 

 bonds of the Treasury of the Republic. 



(h) To purchase real estate, for some of the following purposes only: 



(1) To establish therein their principal offices and the branches of the bank; 



(2) To thus collect upon any debt in favor of the banking institution, in which 



case the real estate should be sold in a period of time not over three years, unless 



the National Banking Commission should extend this time for justified reasons. 



(i) To act only as agents, administrators or depositaries of property in all man- 

 ner of business, without participating in the same and without giving security for 

 another's obligations, without prejudice to the right of the bank of receiving the com- 

 missions or remuneration agreed upon for such services. 



(j) And all those other operations that are necessary for carrying on the business 

 of banking. 



Banks of Agricultural Credit 



75. Banks of Agricultural Credit are authorized to enter into the following trans- 

 actions: 1. Loans for a period of time not to exceed five years, on fruits, crops, cattle, 

 agricultural implements or other pledges or special security; 2. To guarantee with its 

 signature, promissory notes and instruments demandable within a maximum period of 

 180 days in order to facilitate their discount or negotiation for the owner or agricul- 

 turist, provided that the proceeds are to be used in agricultural business and with the 

 condition that the guarantor shall guarantee the same for the bank with a sufficient 

 pledge. 3. To grant loans to owners, farmers, cattle men and others engaged in the 

 development of rural industries and for agricultural purposes, with security of future 

 crops or harvested crops, cattle, agricultural implements, pledges of easy turnover, 

 with products stored in warehouses, mortgage titles, etc. 4. To open accounts cur- 

 rent for a period of two years, for agriculturists, stock breeders and other persons or 

 entities engaged in the development of agriculture. 5. To discount the rentals of the 

 proprietors of rural properties. 6. To establish storage warehouses for fruits or products, 

 extending the corresponding warehouse certificates or warrants to facilitate the nego- 

 tiation of the same. 7. To enter into all other transactions which have as their object 

 the favoring of the rotation and improvement of the soil, the draining and clearing up of 

 lands and the development of agriculture and other industries related with the same. 



76. The bank may discount the documents referred to in paragraph second of the 

 preceding section, without the need of having the guarantor give any pledge security, in 

 the event that the document bears the endorsement of another bank. 



77. The legitimate holder of the document guaranteed by the bank shall have the 

 right to claim its payment on the date of maturity from any of the signers. If the 

 bank pays the document, by this act it becomes subrogated in the place and stead of 

 the holder, with the right to request its amount from the debtor or guarantor. 



78. The notes or bills of exchange of the proprietor or farmer shall produce on 

 their maturity the executive action that arises according to the provisions of the Law 

 of Civil Procedure. 



79. The bank shall freely contract with the debtor as to the rate of interest 

 and as to the commission that it is to receive on the transaction. 



80. Loans and operations of agricultural credit may not be made for a period 

 in excess of 180 days; but nevertheless when fruits or crops are tendered as security, 

 the time of the loan shall be in relation to the time necessary for the harvesting of the 

 crop, but in no event may the loan be extended beyond three years. 



81. The banks may grant loans to agriculturists or persons who are connected 

 with agricultural business, who are of known solvency, for a period not to exceed 180 

 days. 



82. Loans may be granted with pledge security of fruits, crops, plantations, forests. 



