14 THE CUBA REVIEW 



93. When the mortgaged property shall decrease in value 40%, the bank shall 

 have the right to demand the increase of the mortgage until said depreciation is covered, 

 or to obtain the rescission of the contract, and the debtor shall select either of said 

 two actions. 



94. Mortgage banks may also make loans to Municipalities, to the Provinces, to 

 the Government and to official corporations of the State legally authorized to contract 

 loans, for such amounts as are deemed to be prudent within the limit authorized, with- 

 out mortgage, provided that their reimbursement and the payment of the interests is 

 guaranteed by the permanent necessary revenues. 



95. Mortgage banks, just as they may issue mortgage titles or bonds for an 

 amount equal to the total of the loans upon real estate with mortgage security, may 

 also issue obligations for the amount of the loans made to the Government, the Prov- 

 inces or the Municipalities. 



96. Mortgage banks may also negotiate said titles or mortgage bonds and open 

 accounts on the basis of same. 



97. Said titles or mortgage bonds and obligations may be made to bearer or to 

 order, with amortization or without it, for a long or short period, with or without 

 premium, and they shall be transferred by indorsement. These titles or mortgage bonds 

 and obligations, their coupons and premiums, if they have any, shall carry with them 

 executive action under the terms provided in the Law of Civil Procedure. 



98. The obligations, titles or mortgage bonds, to order or to bearer, shall have 

 the force of a public document upon which a final judgment of execution has been 

 rendered in order to claim from the bank through proceedings in restraint the payment 

 of the principal and the interest after its maturity. Said titles shall have as special 

 security, in so far as refers to their principal and interest, all the real estate or person- 

 ality which make up the assets of the bank, and in addition thereto the mortgaged real 

 estate under the contracted loans. 



99. The bearer of titles or mortgage bonds to bearer shall be considered their 

 owner and the persons that present the coupons as their owners, and no judicial or 

 extrajudicial opposition to the payment of these securities on the part of a third 

 person shall be allowed, unless the solicitor has fulfilled the formalities provided by 

 law in order to suspend payments for titles of the public debt to bearer, and their 

 coupons. 



100. Mortgage banks may also make loans with mortgages to be reimbursed within 

 a period under five years. These five year loans shall be without amortization and 

 shall not authorize the issue of obligations or mortgage bonds, and the same should 

 be made from the capital and earnings of the bank. 



101. Mortgage banks may receive capital on deposit, with or without interest, and 

 use half of the same for making advances for a period not in excess of 90 days, as 

 well as on its obligation and mortgage titles and upon any other titles which are 

 received in pledge by other banks. In the case of failure or payment on the part 

 of the debtor, the bank may demand the sale of the title or pledged securities in accord- 

 ance with the terms of article 323 of the Code of Commerce. 



102. All combinations of territorial credit including the mutual associations of 

 proprietors shall be subject, in so far as regards the issue of obligations and mort- 

 gage titles, to the rules contained in this section. 



103. While the privilege or faculty granted to the "Banco Territorial de Cuba" 

 by article IV of the Law of July 29, 1910, is in force, no mortgage bank may issue 

 obligations, titles or mortgage credits. 



On Banks and Savings Institutions 



104. Savings banks and savings institutions are authorized to receive deposits pay- 

 ing the depositors interest which shall never be in excess of 3% per annum, in the 

 case of deposits that can be withdrawn by notifying the bank 30 days in advance. 



