THE CUBA REVIEW 15 



105. The deposits that are received by savings banks and savmgs institutions in 

 savings accounts may be invested in obHgations and securities of the Government, in 

 commercial paper and in first mortgages on real estate on record at the Registry of 

 Property, for a period not greater than five years and in amounts not over forty 

 thousand dollars ($40,000) upon one same piece of property, and the loan cannot 

 exceed 50% of the value of the real estate given as security, according to the tech- 

 nical report or valuation which is made for that purpose. 



106. The Savings banks institution may use up to twenty per cent, of its capital 

 for the purchase of real estate on which to estabhsh its offices. 



107. The savings bank or savings institution shall return any deposit provided 

 it has been demanded with thirty days' notice or with the anticipation that has been 

 agreed upon, which carmot exceed one year. 



108. The saving bank shall be obliged to keep a reserve fund, in addition to what 

 it is obliged to keep at the reserve bank, equivalent to 7 per cent, of its deposits of 

 all kinds, of which amount it shall not dispose, and it shall be prevented from con- 

 tinuing its loan transactions in the event that the reserve fund should at any time 

 be less than the amount set forth in this section. 



109. Savings banks may not be established unless they have the capital which 

 is fixed for commercial banks by the present law. 



110. Mutual savings banks or societies may also be established, in accordance 

 with this law and with the conditions that for this purpose shall be fixed by the 

 National Banking Commission. 



On Clearing Houses 



111. The banks may establish Chambers of Compensation (Clearing Houses) 

 the object of which shall be only the exchange of their checks and the daily liquidation 

 of their checking and other accounts. The constitution and by-laws of these asso- 

 ciations must be approved by the National Banking Commission. 



On the Requisites Necessary for the Establishment of Banks and the Promsions 

 THAT They Must Observe in Their Organization and Operation 



112. All banks that receive deposits and operate within the territory of the republic 

 at the time of the enactment of this Law, whether they be national institutions or 

 branches of foreign banks, shall adjust themselves to the provisions of the same and 

 shall be obliged to become a part of the Cuban banking system, in the manner and 

 conditions established in this Law. 



113. No bank, national or foreign, or of private individuals or corporations, may 

 be established without the proper authorization of the National Banking Commission. 



114. No individual, firm, corporation, society, company or association, may engage 

 in the banking business, nor display nor make use of any sign which shall contain 

 the word BANK, nor will they be able to use said word on their stationery or 

 advertisements, nor shall they advertise themselves as a bank, unless they have been 

 duly authorized to operate as a bank, inasmuch as the word BANK may be authorized 

 for the use only of banks and bankers, national or foreign, which are organized 

 according to the provisions of this Law and have been duly approved by the National 

 Banking Commission. 



115. Banks that do not receive deposits, shall remit to the National Banking 

 Commission a complete statement of their situation and a descriptive report of their 

 operations, and if found correct, the National Banking Commission shall authorize 

 them to continue their operations, and they shall adjust themselves as far as possible 

 to this Law as well as to their By-laws or articles of incorporation and to the transitory 

 regulations which said Commission shall issue. Banks of this kind which are established 

 in the future shall be regulated principally by this Law. 



116. Whenever any individual, regular partnership, partnership in commendam 

 or corporation desires to establish a bank in the Republic of Cuba, it shall address 



