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Law No. 101 Of 26 May 1998 Concerning The Statute Of Banca Naţională A României

Original Language Title:  LEGE nr. 101 din 26 mai 1998 privind Statutul Băncii Naţionale a României

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LEGE no. 101 101 of 26 May 1998 (* updated *) on the Statute of the National Bank ((updated until 17 November 2003 *)
ISSUER PARLIAMENT




-------------- *) The initial text was published in the OFFICIAL GAZETTE no. 203 203 of 1 June 1998. This is the updated form of S.C. "Territorial Center of Electronic Computing" S.A. Piatra Neamt until November 17, 2003, with the amendments and additions made by: LAW no. 156 156 of 12 October 1999 ; EMERGENCY ORDINANCE no. 273 273 of 7 December 2000 rejected by LAW no. 341 341 of 6 July 2001 ; EMERGENCY ORDINANCE no. 136 136 of 18 October 2001 . The Romanian Parliament adopts this law + Chapter 1 General provisions + Article 1 Legal status (1) The National Bank of Romania is the central bank of the Romanian state, having legal personality. (2) The National Bank of Romania is headquartered in Bucharest and may have branches and agencies in the capital and other localities in the country. + Article 2 Fundamental objective (1) The fundamental objective of the National Bank of Romania is to ensure the stability of the national currency, to contribute to price stability. (2) In order to achieve its fundamental objective, the National Bank of Romania shall develop, apply and respond to monetary, foreign exchange, credit, payment policy and prudential banking authorization and supervision, within the framework of the general policy of the state, aiming at the normal functioning of the banking system and participation in the promotion of a financial system specific to the + Article 3 Working with other authorities (1) The National Bank of Romania collaborates with central and local public authorities to meet its objectives. (2) In order to achieve its fundamental objective, the National Bank of Romania will be asked for a view on the normative acts of the public authorities, which directly concern the monetary policy, the banking activity, the currency regime and public debt. (3) In the elaboration of the projects of central public administration budgets, the National Bank of Romania is consulted regarding the establishment of the conditions of public sector loans. (4) For its own and public authorities ' needs, the National Bank of Romania shall develop studies and analyses on the currency, currency regime, credit and operations of the banking system and payments. (5) In order to fulfill the commitments resulting from agreements, treaties, conventions to which Romania is part the National Bank of Romania collaborates with the competent authorities of the country and abroad by providing information, the adoption of measures appropriate or in any other way. (6) In order to strengthen the stability and integrity of the financial system, the National Bank of Romania can collaborate with other institutions and authorities in the country and abroad, including, without being limiting, the authorities responsible for supervision of financial, insurance and financial markets. (7) The collaboration will be carried out by exchange of information or in any other way, according to the law and/or agreements concluded with these institutions or authorities, in order to fulfill their specific duties and under conditions of reciprocity and the confidentiality of the information thus provided. (8) The institutions and public authorities shall provide the National Bank of Romania with the information it considers necessary or which are requested by it, in order to achieve effective supervision and to achieve the objectives of the Bank National of Romania. ------------ Title art. 3 was amended by EMERGENCY ORDINANCE no. 136 136 of 18 October 2001 published in MONITORUL OFFICIAL no. 671 671 of 24 October 2001. Alin. ((5), (6), (7) and (8) of art. 3 were introduced by EMERGENCY ORDINANCE no. 136 136 of 18 October 2001 published in MONITORUL OFFICIAL no. 671 671 of 24 October 2001. + Article 4 International cooperation (1) From the empowerment of the Parliament, the National Bank of Romania may participate in international organizations of financial, banking, monetary or payments character and may become a member thereof. (2) The National Bank of Romania may participate, on behalf of the state, in negotiations and external negotiations on financial, monetary, foreign exchange, credit and payment issues, as well as in the field of banking authorization and supervision. (3) The National Bank of Romania exercises rights and fulfils obligations incumbent on Romania as a member of the International Monetary Fund, including the use of the facilities of this medium-and long-term financing institution for balance of payments needs and strengthening of the country's international reserves. (4) The National Bank of Romania may negotiate and conclude agreements, conventions or other agreements on short-term loans and other financial-banking operations with international financial institutions, central banks, banking companies and non-bank, provided that they are reimbursed within one year. (5) The National Bank of Romania may conclude on its own behalf or on behalf of the state, in its account and from its disposition, settlement and payment agreements or any other contracts having the same purpose with public or private institutions that are based abroad. + Chapter 2 Monetary and foreign exchange policy + Article 5 Monetary policy Within the monetary policy it promotes, the National Bank of Romania uses specific procedures and instruments for money market operations, banks lending and liquidity control through mandatory minimum reserves. + Article 6 Money market operations The National Bank of Romania can count, acquire, take into pledge or sell receivables, securities or other values on the state, banks or other legal entities and may attract deposits from banks, under the conditions it considers necessary to achieve monetary policy objectives. + Article 7 Credit operations (1) The National Bank of Romania may grant loans under conditions of reimbursement, guarantee and interest, which are established by own regulations, in accordance with the provisions of this law. (2) Crediting by the National Bank of Romania on the overdraft is prohibited. + Article 8 Mandatory minimum reserves (1) The National Bank of Romania shall establish the minimum reserves regime which banks shall maintain in open accounts. (2) For deposits in foreign currency, required reserves shall be constituted only in foreign currency. (3) At the minimum reserves, the National Bank of Romania will pay interest at least at the level of the average interest rate on the spot deposits applied by commercial banks. + Article 9 Foreign exchange policy (1) The National Bank of Romania shall develop and apply the exchange rate policy, establish and pursue the application of the currency regime on the territory of Romania (2) The National Bank of Romania is an agent of the state with regard to the application of legal regulations on foreign exchange control to legal entities to which it has granted authorization and from which it is entitled to request and receive all the information and any documents necessary for the performance of its duties, being empowered to take measures to enforce compliance with its regulations. + Article 10 Establishment of currency In the administration of the foreign exchange regime, the National Bank of Romania a) issuance of regulations on operations with external assets and gold, in order to protect the national currency; b) the development of the balance of payments and other works on the international investment position of the country; c) establishment of exchange rates for own operations on the foreign exchange market, calculation and publication of average courses for statistical records; d) authorization and withdrawal of authorization, as well as supervision of legal entities that obtained authorization to perform foreign exchange transactions; e) the establishment of platforms and other limits for the holding of external assets and operations with gold and external assets for legal and natural persons; f) the establishment of the ceiling and the conditions of external indebtedness of legal and natural persons falling under the foreign exchange regime; g) preservation and administration of international reserves of the state. + Article 11 Currency regulations The National Bank of Romania develops regulations on monitoring, control of foreign exchange transactions on the territory of the country and issues permits for transfers abroad, transactions on foreign exchange markets and for other specific operations. + Article 12 Monitoring and reporting For the monitoring of foreign exchange transactions, legal entities authorized to conduct foreign exchange operations shall report to the National Bank of Romania on the transactions carried out, through documents whose form and content are established by + Chapter 3 Monetary issuance + Article 13 Exclusive right of issue The National Bank of Romania is the only institution authorized to issue monetary insignia, in the form of banknotes and coins, as legal means of payment on the territory of Romania. + Article 14 Monetary unit The national currency is the lion, and its subdivision, the money. + Article 15 Monetary insigns (1) The National Bank of Romania is the only one in law to determine the nominal value, dimensions, weight, drawing and other technical characteristics of banknotes and coins. (2) The banknotes bear the signature of the Governor of the National Bank of Romania and of the Central (3) The counterfeiting or counterfeiting of banknotes and coins is a criminal offence and is punishable by law. (4) The legal provisions regarding bearer securities lost or stolen are not applicable to banknotes and coins issued by the National Bank of Romania. (5) The graphics of banknotes and coins are protected by registration at the State Office for Inventions and Trademarks in Romania. Any color reproduction of these, at scale 1/1, partial or integral, for advertising, information or other commercial purposes can be done only with the prior agreement, in writing, of the National Bank of Romania. + Article 16 The monetary programme (1) The National Bank of Romania shall develop the program of issuance of banknotes and metal coins, so as to ensure the cash requirements in strict accordance with the real needs of money circulation. (2) The total amount of banknotes and coins in circulation, which excludes the cash reserve, shall be highlighted as a liability in the accounts of the National Bank of Romania. (3) Cash tranche in circulation, issued by the National Bank of Romania above the level of international reserves established and maintained according to the provisions of art. 31, must be fully covered by the following assets: a) government securities held in the investment portfolio; b) assets resulting from loans granted to banks and other legal entities, under the law; c) cheques, bills of exchange and other credit securities which are expected or held in the portfolio. + Article 17 Means of payment Banknotes and coins issued and unbound from circulation by the National Bank of Romania represent monetary insignia which must be accepted at face value for payment of all public and private obligations. + Article 18 Issuance and circulation of monetary notes (1) The National Bank of Romania shall ensure the printing of banknotes and the minting of metal coins and shall take measures for the safe keeping of those who are not put into circulation, as well as for the custody and destruction, when it is necessary, molds, inks and banknotes and metal coins withdrawn from circulation. (2) The National Bank of Romania distributes the monetary issue realized and manages the cash reserve in the form of banknotes and coins. (3) Used or improper banknotes and coins shall be withdrawn from circulation and destroyed by the National Bank of Romania, being replaced by new banknotes and/or coins. (4) The National Bank of Romania shall replace, without fees and commissions, the banknotes and coins issued and non-registered in circulation. (5) The National Bank of Romania may refuse to replace banknotes and metal coins showing deformities, are illegible or if more than 40% of their surface is missing. These monetary insignia will be withdrawn from circulation and destroyed without compensation to the holders, except for the special cases mentioned in their own regulations. (6) The National Bank of Romania cannot be obliged to grant compensation for banknotes or coins that have been lost, stolen, destroyed, counterfeit or forged. + Article 19 Change of monetary notes (1) The National Bank of Romania may decide to cancel or withdraw from circulation any banknotes or coins that have been issued and, instead, to put into circulation other types of monetary insignia. (2) The modality and the period of exchange shall be published in the Official Gazette of Romania and in at least two newspapers of national circulation. (3) Upon expiry of the period of exchange, banknotes and coins withdrawn from circulation, without contradicting the provisions of art. 17, can no longer be used to pay public and private obligations. (4) The total amount of banknotes and coins withdrawn from circulation, but not exchanged within the established period, shall be deducted from the total cash in circulation recorded in the accounting records and shall be registered as income of the National Bank of Romania. + Chapter 4 Operations with banks + Article 20 Lending to banks Within the framework of its monetary, foreign exchange, credit and payments policy, the National Bank of Romania may grant loans to banks on terms not exceeding 90 days, guaranteed by: a) government securities issued from public issues with payment maturities within a maximum of one year from the date of establishment of the guarantee by remission to the portfolio of the National Bank of Romania; b) bills and promissory notes drawn or subscribed for payment of commercial, industrial or agricultural benefits by eligible legal entities, according to the norms issued by the National Bank of Romania; c) warrants or storage containers issued with regard to fungible goods or other valid goods insured against the risks of loss, destruction or deterioration; d) deposits constituted at the National Bank of Romania or other legal entities agreed by the National Bank of Romania, consisting of any assets that it may sell, buy or trade. + Article 21 Conditions and credit costs (1) The National Bank of Romania shall establish and make public the credit conditions, the minimum level of interest rate on loans granted to banks and the criteria to be met by banks in order to be able to apply for credits on a competitive basis. (2) The National Bank of Romania may set credit ceilings, interest rate levels, repayment terms and other conditions under which discretionary or competitive credits may be granted. (3) For all the operations carried out, the National Bank of Romania shall establish and collect interest, commissions and other forms of coverage of the operating costs and risks assumed, except for the operations carried out by the general current account State Treasury. + Article 22 Bank accounts (1) The National Bank of Romania shall open a current account for the State Treasury, for each bank and for each branch of a bank, foreign legal entity, authorized to operate in Romania. (2) The National Bank of Romania may open current settlement accounts and other accounts for resident interbank compensation houses, as well as for central banks and non-resident international institutions. (3) The current accounts shall be made the final and irrevocable settlement of the operations of receipts and payments between the account holders. + Article 23 Payment systems The National Bank of Romania issues general regulations on payment instruments, coordinates and supervises payment systems of national interest and establishes the necessary measures to prevent and eliminate any situation that endangers the proper functioning of payment systems. + Article 24 Clearing, storage and payment services (1) The National Bank of Romania may provide clearing, storage and payment services through the accounts opened in its records. (2) The National Bank of Romania may, on its own account or on behalf of the state, participate in compensation, storage and payment arrangements or other contracts with this purpose, concluded with central institutions or with collective organizations specialized, public and private, based abroad. + Article 25 Prevention and limitation of risks For the prevention and limitation of payment and credit risks, the National Bank of Romania provides collection and dissemination services, upon request, for payment, data and information on payment incidents and credit risks in the banking system, under conditions of insurance of the secrecy of banking operations. + Chapter 5 Banking supervision + Article 26 Authorisation and prudential supervision of banking (1) The National Bank of Romania shall have exclusive competence to authorise the functioning of banks and shall be responsible for the prudential supervision of banks which it has authorized to operate in Romania, in accordance with the provisions of the Banking Law. (2) In order to ensure the viability and functioning of the banking system, the National Bank of Romania is empowered: a) to issue regulations, to take measures to enforce them and to enforce legal sanctions in cases of non-compliance; b) to control and verify on the basis of the reports received and through on-site inspections the registers, accounts and any other documents of the authorized banks, which it considers necessary for the performance of its supervisory tasks. (3) The performance or omission of the performance in good faith and without negligence of any act or fact in connection with the exercise, under the law, of the supervisory powers cannot entail civil or criminal liability, as the case may be, of the members the board of directors or the staff responsible for the National Bank of Romania for this purpose. ------------- Alin. ((3) art. 26 was introduced by EMERGENCY ORDINANCE no. 136 136 of 18 October 2001 published in MONITORUL OFFICIAL no. 671 671 of 24 October 2001. + Article 27 Protection against the risk of banking system In order to limit the risk of banking and payments, exceptionally and only on a case-by-case basis, the National Bank of Romania may grant banks and other loans unsecured or guaranteed with assets other than those provided for in art. 20. + Chapter 6 State account operations + Article 28 State Treasury Account (1) The National Bank of Romania keeps in its records the general current account of the State Treasury, opened on behalf of the Ministry of Public Finance. (2) The operation of the general current account of the State Treasury and the registration of operations in this account shall be established by conventions concluded between the National Bank of Romania and the Ministry of + Article 29 Operations with the State Treasury (1) The National Bank of Romania shall receive the receipts for the general current account of the State Treasury and shall make the payments within the limits of the available availability (2) The National Bank of Romania does not charge fees for the settlement of operations through the general current account of the State Treasury, opened in its records, and pays interest on the availabilities of this account. (3) During the annual financial year, in order to cover the temporary gap between the receipts and payments from the general current account of the State Treasury, the National Bank of Romania may grant loans with repayment terms of no more than 180 of days and interest at market level, on the basis of conventions concluded with the Ministry of Public Finance. (4) The total amount of loans granted may not exceed in any annual financial year the equivalent of 7% of the revenues of the state budget made in the previous year, and the permanent balance of loans granted and non-reimbursed may not exceed at no time the total amount resulting from the doubling of the capital and reserve fund of the National Bank of Romania. (5) The National Bank of Romania may act as a state agent in the establishment of eligible banks to receive deposits of the State Treasury, under conditions that will be established together with the Ministry of Public Finance. + Article 30 Operations with government securities (1) Based on the conventions concluded in advance with the Ministry of Public Finance and in accordance with its own regulations, the National Bank of Romania may act as an agent on the account of the state, as regards: a) the placement of the issues of government securities and other negotiable effects of indebtedness of the Romanian state; b) the exercise of the functions of agent of registration, storage and transfer of government securities; c) payment of capital, interest, commissions and related charges; d) execution of settlements in the general current account of the State Treasury; e) other operations in accordance with the main objectives and responsibilities of the central bank; f) making payments related to the above through accounts opened in its records, including those related to the debt service of issuers and other trading and operating costs. (2) The loans on the basis of government securities shall be made according to the conventions concluded between the National Bank of Romania and the Ministry of Public Finance, establishing at least the following elements: interest and calculation of interest for the duration of the credit, debt service costs, as well as data on negotiable government securities issued for each loan. + Chapter 7 Operations with gold and external assets + Article 31 International reserves (1) The National Bank of Romania, respecting the general rules on liquidity and the specific risk of foreign assets, establishes and maintains international reserves, under such conditions may periodically determine their exact size, reserves Cumulatively or selectively composed of the following elements: a) gold held in treasury in the country or stored abroad; b) external assets, in the form of banknotes and coins or available in accounts with banks or other financial institutions abroad, expressed in those currencies and held in those countries which the National Bank of Romania establishes; c) any other internationally recognized reserve assets, including the right to make purchases from the International Monetary Fund within the reserve tranche, as well as the holding of special drawing rights; d) bills, cheques, promissory notes, as well as bonds and other securities, negotiable or not, issued or guaranteed by non-resident legal entities, classified in the first categories by the risk assessment agencies, recognized on international plan, expressed and payable in foreign currency in acceptable places for the National Bank of Romania; e) treasury bills, bonds and other government securities, issued or guaranteed by foreign governments or by intergovernmental financial institutions, negotiable or not, expressed and payable in foreign currency in acceptable places for the National Bank of Romania. (2) The National Bank of Romania aims, together with the Ministry of Public Finance, to maintain international reserves at a level that it appreciates as appropriate to the external transactions of the state. (3) If there is a danger of diminishing international reserves up to a level that would jeopardize the international transactions of the state, as well as if the decrease occurred, the National Bank of Romania will present to the Government and Parliament a report on the situation of international reserves and the causes that have led or which may lead to such a reduction. The report will contain recommendations and proposals for measures of the National Bank of Romania, necessary to prevent or remedy the situation. + Article 32 International reserves management The National Bank of Romania is authorized, under the conditions it establishes and may modify periodically, to carry out the following operations: a) to buy, sell and make other transactions with gold bars and coins and other precious metals; b) to buy, sell and make other transactions with currencies; c) to buy, sell and make other transactions with treasury bills, bonds and other securities issued or guaranteed by foreign governments or by intergovernmental financial organizations; d) to buy, sell and make other transactions with securities issued or guaranteed by central banks, international financial institutions, banking and non-banking companies; e) to open and maintain accounts with central banks and monetary authorities, banking companies and international financial institutions; f) to open and hold accounts and to conduct correspondent operations for international financial institutions, central banks and monetary authorities, financial and banking companies, intergovernmental financial organizations abroad, as well as for foreign governments and their agencies. + Chapter 8 Management and administration + Article 33 National Bank of Romania (1) The National Bank of Romania is headed by a board of directors. (2) The executive management of the National Bank of Romania shall be exercised by the governor, first deputy governor and two deputy governors, under the conditions established by the internal regulation approved by the board of directors. (3) The activity of the Board shall be governed by the provisions of this Law and by the regulations of the National Bank + Article 34 Board of Directors (1) The Board of Directors of the National Bank of Romania decides, under the law: a) policies in the monetary, currency, credit and payment fields, aiming to bring them to fruition; b) measures in the field of prudential authorization and supervision of the banks he authorized; c) the main directions in the management of operations and responsibilities of the staff of the National Bank of Romania d) internal organization, allowances, salaries and other money rights of the staff; e) the temporary delegation of its powers to the executive management, when special situations may impose this solution. (2) The Board of Directors of the National Bank of Romania is composed of 9 members, as follows: a) a president, who is also governor of the National Bank of Romania; b) a vice president, who is also the first deputy governor; c) seven members, two of whom are also deputy governors, and the other five members are not employees of the National Bank of Romania. (3) The members of the Board of Directors of the National Bank of Romania, with the nomination of the executive management, are appointed by the Parliament, on the proposal of the permanent specialized committees of the two Houses of ((4) The appointments shall be made for a period of 6 years, with the possibility of renewing the mandate. (5) In case of dissolution of the Board of Directors, the filling of vacant seats shall be on the respective function and only for the remaining period until the expiration of the mandate of those replaced, in compliance with the provisions ((3). (6) The return from office of any member of the board of directors shall be made by the Parliament, at the proposal of the permanent specialized committees of the two Houses of Parliament, for each individual case, if: a) is no longer eligible in accordance with the provisions of art. 35 35; b) a criminal conviction was handed down against him with a custodial sentence and if the judgment is final; c) during the mandate he engaged in manifestly inadequate actions, which substantially damage the interests of the National Bank of Romania. (7) No member of the Board of Directors of the National Bank of Romania will be changed from office for other reasons or by procedure other than that provided in par. ((6). (8) The appointments, withdrawals and revocations of the members of the Board of Directors of the National Bank of Romania shall be published in the Official Gazette of Romania. (9) At the meetings of the Board of Directors of the National Bank of Romania, the Minister of Public Finance and the Director of the State Treasury may participate, + Article 35 Incompatibilities and conflicts of interest (1) The members of the Board of Directors of the National Bank of Romania cannot be parliamentarians or members of a political party and cannot be part of the judicial authority or public administration. (2) The members of the board of directors and employees with management positions of the National Bank of Romania shall be prohibited from representing, directly or indirectly, any financial, commercial or other interest that would put them in a position in which their personal interest would conflict with their oblibations and duties towards the National Bank of Romania. (3) Without the express approval of the Council of Administration of the National Bank of Romania: a) during their mandate, the governor, the first deputy governor and deputy governors will not devote their professional capacities to interests other than those of the National Bank of Romania and will not be able to occupy any other position, remunerated or honorary, in financial, banking or non-banking companies, except for teaching; b) during the period of which he is employed with an individual employment contract at the National Bank of Romania, no employee of the latter will be able to hold simultaneously another position, remunerated or honorary, to a company or to another economic agent who, through its statutory activity, seeks to obtain profit. + Article 36 Powers of the Governor of National Bank (1) The Governor of the National Bank of Romania has measures for the execution of legal provisions, decisions of the board of directors, as well as other regulations regarding the National Bank of Romania. The Governor may delegate to the First Deputy Governor and Deputy Governors some of his duties, under the conditions laid down by the board of directors. (2) The governor shall appoint the personnel of the central apparatus of the National Bank of Romania and the directors of branches and agencies. (3) The Governor represents the National Bank of Romania in relations with third parties, signing, directly or through persons empowered by him, all treaties or conventions concluded. ((4) On behalf of the board of directors, the Governor shall submit to the Parliament, by June 30 of the following year, the annual report of the National Bank of Romania, which includes: a) the main economic, financial, monetary and currency developments; b) monetary policy in the previous year and guidelines for the following year; c) regulation and prudential supervision of banking; d) activities of the National Bank of Romania, annual balance sheet and profit and loss account. (5) In the event of the absence or impossibility of the governor to act, he will be supplanted by the first deputy governor. + Article 37 Committee of censors (1) The censor commission, consisting of 5 members, one of which is president, is called under the conditions of art. 34 34 para. ((3) and (4). (2) The Audit Committee shall verify compliance with the legal norms regarding the assessment of the patrimony of the National Bank of Romania, the preparation of the balance sheet and the profit and loss account, in accordance with the registers, the existence of values and securities in the property or received in pledge, bail or custody, as well as the execution of the revenue and expenditure budget. (3) Annually, the censor committee shall draw up a report on the balance sheet and profit and loss account, as well as on the execution of the revenue and expenditure budget. + Article 38 External expertise The accounts and records of the National Bank of Romania will be subject to the analysis of some financial audit firms, which will be selected by the board of directors on the basis of auction. + Chapter 9 Financial statements + Article 39 Capital of National Bank of Romania (1) The capital of the National Bank of Romania is 100 billion lei and belongs entirely to the state. The capital increase will be made through the partial use of annual net profit, up to a level equivalent to 5% of the aggregate monetary liabilities on the balance sheet at the end of each annual financial year. (2) The capital of 100 billion lei is constituted by taking over the capital recorded on December 31, 1997, by 5 billion lei, and by allocating the amount of 95 billion lei from the reserve fund of the National Bank of Romania. (3) The aggregated monetary steps of the National Bank of Romania shall be established as the total amount of banknotes and coins in circulation and securities issued, as well as of the crediting balances of all open accounts, on holders, in His records. + Article 40 Reserve fund The reserve fund of the National Bank of Romania shall be constituted within the limit of a quota of 20% of the gross profit until it is equal to the equity, after which the respective share is reduced to 10% until the reserve fund ends up being equal with double equity and, subsequently, the share is set at 5%. + Article 41 Account plan (1) The operations of the National Bank of Romania are accounted for according to the own plan of accounts, endorsed by the Ministry of Public Finance, on annual financial years, starting with January 1 and ending on December 31. (2) The National Bank of Romania shall maintain accounts and records and shall draw up annual reports reflecting the financial operations and results, including the provisions set up for non-performing loans, in accordance with the relevant legislation and with internationally accepted principles for central banks. + Article 42 Revenue and expenditure budget The annual revenue and expenditure budget is approved by the Board of Directors of the National Bank of Romania and shall be verified in execution by the censor committee. + Article 43 Profit and loss account (1) For each annual financial year, the profit or loss of the National Bank of Romania shall be calculated, in accordance with the international accounting standards, as the difference between the revenues and expenses from the operational activity ((2) If on the balance sheet of the National Bank of Romania the value of assets falls below the amount of commitments, reserve fund and equity, the Ministry of Public Finance will transfer to the National Bank of Romania, at its request, Negotiable government securities at market price, in the amount necessary to cover this deficit. Within 5 years these state securities will be redeemed by the use of net profits made by the National Bank of Romania or will be renegotiated. + Article 44 Revaluation of assets and liabilities The National Bank of Romania carries out annually the revaluation of assets and liabilities expressed in gold, silver, other metals and precious stones, special drawing rights and foreign currencies, as a result of the modification of the value or course in their lei, and the resulting differences are highlighted in a special reassessment account. + Article 45 Determination and use of net profit (1) The gross profit of the National Bank of Romania shall be constituted only from the net income from the operational activity. (2) Net favourable differences in revaluations, after deducting net losses from operations, shall be allocated to the special revaluation account. (3) The net profit of the National Bank of Romania shall be allocated and used in the following priority order: a) for the increase of equity up to a level equivalent to 5% of the aggregate monetary liabilities, recorded in the balance sheet at the end of each annual financial year; b) for the redemption of the state securities transferred to the National Bank of Romania by the Ministry of Public Finance, under the conditions provided in art. 43 43 para. ((2); c) to set up the development fund; d) for the participation fund of employees at profit, within the limit of 10%; e) for other destinations that are established by the Board of Directors of the National Bank of Romania; f) the remaining profit shall be fully transferred to the state budget, no later than 1 June of the next annual financial year. + Article 46 Distribution of net losses If in an annual financial year the National Bank of Romania records a net loss, it shall be distributed as follows: a) if the net loss is composed of net losses from operations and net unfavorable differences from revaluations, the amount of net losses from operations shall be borne, in order, from the reserve fund and equity, and the amount of the differences net unfavourable revaluations shall be allocated to the special revaluation account b) if net loss is composed of net income from operations and net unfavorable differences from revaluations, net income from operations is constituted in gross profit, and net unfavorable differences from revaluations will be allocated to the account Special reassessments; c) if the net loss is composed of net losses from operations and net favourable differences in revaluations, the net loss shall be covered, in order, from the reserve fund and equity; d) if the net loss is not covered from the reserve fund, the equity and the availability from the special revaluation account, for the remaining amount the Ministry of Public Finance will transfer to the National Bank of Romania government securities, under the conditions provided in art. 43 43 para. ((2). + Article 47 Registration liability For any errors in payments or records in the accounts of the holders, the National Bank of Romania shall respond only up to the limit of the erroneous amount paid or registered in the account, including the related penalties that are paid to the state budget, supported by account holders in the cases provided by law, if it is notified with written complaint until the deadline set and communicated to the account holders. + Article 48 Publication of review The annual balance sheet and profit and loss account of the National Bank of Romania, certified by the censor commission, after their adoption by the board of directors, shall be published in the Official Gazette of Romania. + Chapter 10 Final provisions + Article 49 Applicable law (1) The operations of the National Bank of Romania shall be subject to general legislation, in so far as the Banking Law and this Law do not have otherwise (2) The commercial operations carried out by the National Bank of Romania, which are reflected in the revenue and expenditure budget, in the annual balance sheet and in the profit and loss account, shall be subject to the subsequent control of the Court of Auditors. + Article 50 Regulations of the Romanian National Bank (1) The National Bank of Romania shall be empowered to issue the necessary regulations to implement and enforce compliance with the legal provisions. (2) The regulations of the National Bank of Romania may be in the form of regulations, orders, norms and circulars, having a binding nature for public and private legal entities, as well as for individuals. + Article 51 Statistical information (1) The National Bank of Romania will contribute to harmonization of rules and practices regarding the collection, processing and distribution of statistical information in its fields of competence. (2) The National Bank of Romania collects primary statistical information, which is necessary for the fulfilment of its legal duties, from public authorities, banks, financial institutions and other legal and physical persons. ((3) Banks and other public or private legal persons, who have been authorized or who have accounts with the National Bank of Romania, are obliged to provide it with any data or information requested for the fulfilment of the duties established by law. (4) The National Bank of Romania may publish such data and information, in whole or in part, but only in aggregate form. + Article 52 Special guarantees ((1) Conventions, contracts or any other credit arrangements concluded by the National Bank of Romania shall constitute enforceable securities, in case of non-payment for the entire balance of the claim payable, including interest or other related costs. (2) The financial or judicial bodies shall execute the claim of the National Bank of Romania on the basis of the simple notification from it. (3) If the debtor does not fulfill his commitments, the National Bank of Romania is entitled to proceed to the recovery of claims through the execution of guarantees, as follows: a) the total or partial sale, on the account of the debtor, of the securities and effects that were given to him in the guarantee, within a maximum of 3 days, after a simple summons by an extrajudicial act; b) of the income resulting from the sale shall be recovered the receivables, advances, interest and any other expenses incurred by the National Bank of Romania, and the eventual remaining surplus shall be delivered to the debtor. + Article 53 Third party operations (1) The National Bank of Romania may perform some operations in favor of third parties, only in the conditions of submitting the documents it considers necessary. The National Bank of Romania may, whenever it considers necessary, require the constitution of real or personal guarantees. ((2) Except in cases where this law expressly authorizes it, the National Bank of Romania shall not grant financial assistance in the form of loans, commitments of resources, full or partial takeover of obligations related to a loan or other debt instrument, assumption of a debt or liability adjacent or in any other form. (3) In compliance with the provisions of par. (2), the National Bank of Romania may: a) to invest its financial resources in securities with a high degree of liquidity, issued by debtors with creditworthiness; b) to acquire, in the course of the execution of the claims it has, any rights that may be capitalized; c) to give its employees a credit for housing and loans for durable goods, with interest at the level of average monthly interest from commercial banks. + Article 54 Tax incentives (1) The capital of the National Bank of Romania, the reserve fund and the risk provisions, currencies and other objects of gold, silver and other metals and precious stones shall be exempt from taxes and duties. (2) The purchases of gold and silver from the economic agents are subject to the provisions Government Ordinance no. 3/1992 * *) on value added tax, approved and amended by Law no. 130/1992 and republished in the Official Gazette of Romania, Part I, no. 288 288 of 12 December 1995, as amended. ------------- Article 54 was amended by LAW no. 156 156 of 12 October 1999 published in MONITORUL OFFICIAL no. 500 500 of 18 October 1999. Alin. ((1) art. 54 was amended by EMERGENCY ORDINANCE no. 273 273 of 7 December 2000 published in MONITORUL OFFICIAL no. 677 677 of 19 December 2000. EMERGENCY ORDINANCE no. 273 273 of 7 December 2000 has been rejected by LAW no. 341 341 of 6 July 2001 published in MONITORUL OFFICIAL no. 370 370 of 9 July 2001. * *) Government Ordinance no. 3/1992 has been repealed by EMERGENCY ORDINANCE no. 17 17 of 14 March 2000 published in MONITORUL OFFICIAL no. 113 113 of 15 March 2000. + Article 55 Professional banking secrecy (1) The members of the Board of Directors and employees of the National Bank of Romania are obliged to keep the secret on any information not intended for publication, which they have become aware of during the exercise of their functions, and will not use this information for obtaining personal advantages, any deviation being punished according to the law. (2) Provide information of the nature of those provided in par. (1) may be made under the signature of the Governor of the National Bank of Romania or of persons empowered in this regard, in the following situations: a) in judicial proceedings, at the written request of the competent judicial bodies or, as the case may be, of the criminal investigation bodies, with the authorization of the prosecutor; b) in the framework of the negotiation or development of international agreements to which Romania or the National Bank of Romania is a party; c) within the framework of cooperation agreements with other authorities or on the initiative of the National Bank of Romania, in order to ensure the performance of specific supervisory and control duties on compliance with legal provisions (3) Persons empowered to request and receive information of the nature of professional secrecy in the banking field are obliged to keep their confidentiality and may use them only for the purpose for which they have requested them or been provided according to the law or agreements concluded, any deviation being punishable according to (4) When the information comes from another State, it may be disclosed only with the express consent of the authority which provided it and, where applicable, exclusively for the purpose for which this agreement was given. ------------ Alin. ((2) art. 55 was amended by EMERGENCY ORDINANCE no. 136 136 of 18 October 2001 published in MONITORUL OFFICIAL no. 671 671 of 24 October 2001. Alin. ((3) and (4) of art. 55 were introduced by EMERGENCY ORDINANCE no. 136 136 of 18 October 2001 published in MONITORUL OFFICIAL no. 671 671 of 24 October 2001. + Article 56 Allowances Members of the Board of Directors of the National Bank of Romania and censors receive allowances. + Article 57 Equity interests The National Bank of Romania cannot participate with capital, directly or indirectly, in any commercial company or autonomous direction, with the exception of its own enterprises printing bank tickets and beating metal and other currency. companies that can contribute to the performance of its tasks + Article 58 Real estate The National Bank of Romania can make real estate investments only for its operating needs and for the collective needs of the staff, established by its board of directors. + Article 59 Public communication (1) All regulations issued by the National Bank of Romania shall be published in the Official Gazette of Romania. (2) The National Bank of Romania will open and maintain a public register of its regulations published in the Official Gazette of Romania. (3) The National Bank of Romania shall publish periodically the annual report, reports on the balance of payments and the international investment position of the country, bulletins on the evolution of currency and credit, studies and other materials containing information intended advertising. + Article 60 Sanctions (1) For non-compliance with the regulations issued by the National Bank of Romania, in cases not falling under the Banking Law, the executive management of the National Bank of Romania may apply the following sanctions: a) written warning; b) fine from 1 million lei to 10 million lei; the fines collected are made to the state budget; c) suspension, for a period of up to 90 days, partial or total, of the authorization granted by the National Bank of Romania; d) withdrawal of authorization granted by the National Bank of Romania. ((2) The Appeals may be formulated within 15 days from the date of communication of the sanction and shall be settled by the Board of Directors of the National Bank of Romania within 30 days of their receipt. (3) Within 15 days of communication, the decisions of the Board of Directors of the National Bank of Romania may be challenged at the Supreme Court of Justice. + Article 61 Entry into force This law comes into force 30 days after its publication in the Official Gazette of Romania. + Article 62 Repeal On the date of entry into force of this Law, the Law no. 34/1991 on the Statute of the National Bank of Romania, published in the Official Gazette of Romania, Part I, no 70 70 of 3 April 1991, as well as any other provisions to the contrary. This law was adopted by the Chamber of Deputies and the Senate at the meeting of 5 May 1998, in compliance with the provisions of 74 74 para. ((2) and art. 76 76 para. (2) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT PAULA MARIA IVANESCU p. SENATE PRESIDENT MIRCEA IONESCU-QUINTUS -------------