Banks. -Law Of Issuing Banks.

Original Language Title: BANCOS. — LEY DE BANCOS DE EMISIÓN.

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September 30 law

Banks. †" Law of issuance banks.

ANICETO ARCE,

CONSTITUTIONAL PRESIDENT OF THE REPAsBLICA

For the national congress has sanctioned the following law:

THE NATIONAL CONGRESS,

DECCRETA:

The following:

Issue Banking Act.

ArtA-ass 1.A ° †"It is considered an issue bank that, to all bank operations, gathers the issue of issuing notes to the view and to the carrier.

Art. 2.A ° †"The individual A³ compa ± A-to be proposed to establish a bank of issuance, will request from the lejislative power the respective authorization presenting to the effect its statutes, in which it will contain: I, the name that the bank: II, the the city in which it is proposed to establish it: III, the number of branches, if it must have them, and the localities in which they have to operate: IV, the amount of the effective capital with which the new bank must turn, accompanied by a certificate of deposit in some of the banks already established, the order of the future bank, 5% of the capital with which begin their operations and a table expressing the number of banknotes to be issued in each short period. If the request is made by a society, it will be accompanied by the testimony of the writing of society.

Art. 3.A ° †"If the new bank has not been given to the aA ± or the new bank will not work, then the new bank will be cancelled, and the dealer will lose the deposit to the tax authority as referred to in the previous article.

Art. 4.A ° †"In the event that the authorization was granted to a society, it would be declared subject to the requirements of the societies of this nature, in everything that does not object to the requirements of this law.

Art. 5.A ° †"The installation of the issuing banks will not be able to take place without the concurrency, authorized by the government, the prefect of the department, district attorney, delegate A³ inspector of banks and a notary; The effectiveness of the capital of the bank in sealed currency, gold and bar A³ to silver, and the director A³ directors of the bank and its owner, under oath, must affirm that the capital belongs really to the society A³ person who founded the bank and that it will be faithful and exclusively employed in its operations. Legalized the act with the signature of the

commissioners indicated and the bank's owner A³, will be raised to the government for the day to be opened to the public service.

Art. 6.A ° †"The effective capital of the issuance banks cannot be less than five hundred thousand Bolivians: being able to be increased, through application to the lejislative, provided that it is checked against the officials indicated in the previous article and in the The same way, which in its box exists in sealed currency, gold, bars A³ pià ± as of silver, a value that reaches, for the sake of the 6. part of the total sum of its issuance, even the one that in the increase it will correspond to. The record of this check will be raised before the government for the purposes already expressed.

Art. 7.A ° to € "Directors of any issue bank will pass to the ministry of finance, within the first thirty days of each semester, a balance sheet, in which they manifest the situation of the bank in the previous semester, and must appear in the balance the items indicated in the article 32.Ao These balances will be published in the official journal.

Art. 8.A to € "The director A³ of a bank of issuance shall hold in the company a number of shares equivalent to 1% of the capital of the bank. Branch managers should have half of the shares as the principal director. These actions must remain free of all obligations regarding third parties, and their titles will be deposited in the bank box, as a guarantee-a during the time of their administration and up to six months after they have finished it.

Art. 9.A ° †"It is forbidden to the banks of issuance: I, open credit A³ lend to a person A³ society more than 10% of its effective capital: II, receive as guarantee-to its own shares. The director A³ administrator who will miss these conditions, will be considered a co-debtor of solidarity of the loans made and punished with a fine of one thousand to four thousand Bolivians.

Art. 10.†"Every bank is obliged to constitute a reserve fund with 5% of its profits, up to a sum equal to 20% of its effective capital.

Art. 11.†"If a bank loses its reserve fund and in addition 25% of its effective capinal will be immediately settled.

Art. 12.†"The issuing banks, already belonging to a single person A³ to a company of any nature that is, will pay an 8% tax on its profits lA-quidas.

Art. 13.†"They will not be able to issue banknotes in the proportion of 150% of their effective capital, without the issue being issued on the reserve fund.

Art. 14.†"In the statutes that must be presented to the government, it will be established, for publication in the newspapers of the republic, the table that expresses the number of banknotes to be issued in each court.

Art. 15.†"If the issue of banknotes exceeds what is agreed by this law, the government will give part to the public ministry to require the convenience,

Art. 16.†"The banknotes will be issued in duly numbered items, representing the values of 5, 10, 20, 50 and 100 Bolivians. Each bank will distinguish from the other banks, their banknotes in color and printmaking.

Art. 17.†"Tickets will be signed by the inspector janeral, outside the other firms that determine the statutes,

Art. 18.†"The banknotes damaged by the use A³ for any other cause, will be burned every three months At the most, in the presence of the delegate of the government, of the official A³ employee who appoints the bank and the district attorney, they will raise the minutes of their destruction.

Art. 19.†"Any bank shall cease to issue banknotes after it has agreed to its settlement.

Art. 20.†"The banknotes are convertible into the metallic sight and the bearer, and in no case can the forced course of them be declared.

Art. 21.†"The effectiveness of the conversion of banknotes is the responsibility of the local administrative authority, according to the following procedure:

After the prefect receives a written request, denouncing that a bank office refuses To convert banknotes, to order to the public ministry the investigation prolija of the fact, it was noticed the leader A³ administrator of the bank.

Art. 22.†"If the report results that the conversion has been guided by some minor causation A³ by some passing incident, that will prevent the realization of some effective funds, the official in charge of the investigation will give to the prefect and you will order that the conversion be verified at the most in the period of thirty days, provided that the convertible sum passes from ten thousand Bolivians, in which case the bank may pay in silver pastes at the commercial price.

If the term has not been verified once the conversion has been verified, the conversion will be provisions of the following.

Art. 23.†"If there is not enough metal in the bank box for the requested conversion, the prefect, in agreement with the public ministry, will immediately close the office, sealing the box, books, wallet and doors, with the assistance of the Hacienda Notary of any other notary in his defect; he will be able to sit on the authorized minutes. This document will-as your background-be passed to the party judge to proceed in accordance with the law.

Art. 24.†"The falsification of bank notes, is subject in its penalty to the laws relating to counterfeiting of currency.

Art. 25.†"The government has the right to run the abuses that are committed in the bank jiro, naming for this effect, a janeral inspector that will function permanently, whose salaries will be paid for the national box.

Art. 26.†"The government has the power to order in any time the actual verification of the state of the banks through commissions, the report of which will be published by the press.

Art. 27.†"The owner A³ jerente of a bank that will refuse to immediately manifest the books, box A³ portfolio, after being duly notified by the inspector A³ government commissioner, will be punished with a fine of 500 The Bolivian government, which will be held by the departmental treasury, without this obstinate the prosecution of the respective trial in accordance with the law.

Art. 28.†"The owner A³ jerente who maliciously had lent a false declaration on the property, destination of the capital, A³ passed a balance A³ false documents that hide the situation of the bank, and especially the relative to the sums Directors A³ administrators, whether directly or indirectly, outside of the credit given to them by the board of directors, will be penalized with a fine of 100 to 1,000 Bolivians, without prejudice to the criminal part.

Art. 29.†"The issuing banks will enjoy in their judicial proceedings, the same as the same as the tax; as well as the private ones, when it comes to obligations transferred by the banks.

Art. 30.†"The banks and their branches, will keep their offices open to the public, every day not holidays, from the eleven of the year to the four in the afternoon; except for the days of the days, in which they will be closed One hour Añes ntes: under the fine of Bolivianos mil, for each time that without fair cause is contravened to this disposiciation.

Art. 31.â € "The administrative expenses of the court, will be made indifferently in any of the banks.

The judicial deposits, will earn the corresponding interest for all the time of their duration.

Art. 3€ "In the balance sheet, which in accordance with Article 7 (a) must be submitted on a semi-annual basis, before the Minister of Finance, the securities in legal currencies, the gold bars A³ silver, the securities A³, with the following shall be included in the The value of the current account, the balance of adjustments and notes of other banks: in the owe, the capital of the bank, the reserve fund, the banknotes in circulation and deposits with the view

. 33.â € "They will not be able to charge as criminal charges, more than 1/2% a month.

Art. 34.†"All bank actions must be represented by nominal registration in their rejigres.

Art. 35.†"The transfer of actions will be logged in the respective books.

Art. 36.†"The quality of the shareholder does not entitle any person, in the case of a personal operation with the bank.

Art. 37.†"On the assets of the banks will not be considered the value of the issue material and desk tiles.

Art. 38.†"The banks are obliged to present their statutes to the knowledge of the government, without whose authorization they will not be able to start their operations. The reforms of the statutes are subject to the same formality.

Art. 39.†"The banks are obliged to distinguish with handwritten figures, each of the checks A³ libranzas. This password will correspond to the number of each current account.

Art. 40.†"In the event of payment of a cheque with a counterfeit signature, the bank shall have no liability for such payment, provided that the check corresponds to the current account whose signature is falsified: if on the contrary, the counterfeit It would have been made in a check whose password does not correspond to that of the counterfeit signature and name current account, the bank will be responsible for the total amount paid.

Transitories.

Art. 1.A ° †"The current banks that have in circulation banknotes of a Bolivian, will show to the government the sum to which it reaches, being obliged to collect every year 20% of it; I will not use them, according to the article 18.

Art. 2.A ° †"The violation of the previous provision; will be punishable by a fine of 10% on the amount not recovered A© unused.

Art. 3.A ° to € "This law, after being regulated by the executive, will be in place since the 1st of January 1891.

Session of the National Congress. †" La Paz, September 17, 1890.

SERAPIO REYES ORTIZ.†"DANIEL G. QUIROGA.€" ROBERTO TA©llezâ€" S. Secretario.â€" Român Paz†" D. Secretario.†"José Mará-a Liná ¡ res â€" D. Secretary.

Therefore, I enact it so that it has and will comply with the law of the republic.

Palace of the supreme government in La Paz, 30 September 1890.

MAPLE ANICETO.

Emeterio Cano,

Finance Minister A© industry.