THE CUBA REVIEW 



23 



have as their business the receiving of deposits of money and the carrying of current 

 accounts, with or without interest, and savings accounts, with any corporations, asso- 

 ciations or persons, and which by virtue of what is provided under Title I of the 

 present Law are subject to the jurisdiction of the National Banking Commission. 



Whenever the word bank is used in this Title it shall be understand to refer to 

 each and all of the companies, associations and persons mentioned in this article. 



173. All the associations and individuals which engage in the business referred 

 to in the foregoing section shall be considered in a state of suspension of payments 

 for all the effects and objects of the present Law, when they are unable to meet the 

 payment of their obligations. 



Within forty-eight hours after they have found themselves to be in said condition, 

 their directors, managers or chief officials shall appeal in writing to the Commission, 

 clearly stating the reasons that oblige them to request that the Commission consider 

 them in a state of suspension of payments. 



The persons that find themselves in the conditions to which the first paragraph of 

 article 876 of the Code of Commerce refer and any creditor that proves his credit 

 and also proves that the bank has in a general manner failed in the current payment 

 of its obligations may also, in writing, request the commission to consider the institu- 

 tion which is not meeting its obligations in the state of suspension of payments for 

 all the purposes and effects of the present Law. 



174. In any of the cases foreseen in the preceding section the Commission will 

 be authorized and obliged to act in the manner and form provided in the article 

 following, in order to take possession, to govern and manage all the properties, rights 

 and actions of any kind, cash and securities, as well as the assets and liabilities of the 

 person or entity which is referred to in the petition for suspension of payments, to 

 exercise all classes of actions, to receive rentals, to collect all the credits that are due 

 to said persons or entities which are under its administration or liquidation; and it 

 is also authorized to make compromises as to the same, provided that in its judgment 

 this were necessary, as well as to grant or assign said credits and to contract and 

 compel the performance of obligations in the regular progress of its administration, 

 and, in general, to execute all those acts and to carry out all such measures, in relation 

 with what has been heretofore stated, as the Commission deems necessary for the 

 objects of this Law, including the payment of existing indebtedness and the distribution 

 of the properties and moneys on hand among the persons that have a right to the 

 same. All the transactions above referred to, in so far as regards the administration, 

 shall be carried out with the object of reestablishing the solvency of the person or 

 entity in a state of suspension of payments as soon as possible, and, if not to arrange 

 their final liquidation and, therefore, the closing up of the bank in question. 



175. The powers conferred and the obligations imposed upon the Commission 

 by this Title that refer to the administration and liquidation of the affairs of banks 

 under its jurisdiction, shall be carried out through receivers, who in each case shall 

 be appointed by the Commission and shall never exceed three for each bank, and they 

 shall be paid the amounts fixed by the Commission at the expense of the bank, and 

 said officials shall act under the inspection, direction and government of the Commis- 

 sion, which may remove them at any time, setting forth the reasons for so doing in 

 the resolution adopted. 



176. The Commission, as soon as possible after it has received the petition 

 which is referred to in section 173 shall issue the decree of suspension of payments and 

 at the same time in its decree shall appoint not more than three competent persons 

 who shall present themselves immediately at the offices of the petitioner, and who, 

 as representatives of the Commission, shall take charge of the bank and examine and 

 inspect all of its operations. In the case of the situation foreseen in the last paragraph 

 of section 173, the Commission shall verify the truth of what is stated in the petition 

 and in the affirmative case shall proceed as though the bank itself had presented the 

 petition for suspension of payments. 



