(First draft, subject to corrections, November 22nd, 1994)
Decree-Law No. 26123
INDEX
TITLE I Nature, Objective, Capital and Domicile.............. 7
TITLE II Direction and Administration......................... 8
First Chapter. Board of Directors
Second Chapter. President and Vice-President
Third Chapter. General Manager
Fourth Chapter. Personnel
TITLE III Powers Duties and Prohibitions.........................18
First Chapter. Powers and Duties..................................18
Second Chapter. Prohibitions......................................24
TITLE IV Budget and Finances...................................26
TITLE V Relations with the Government and with other Autonomous
Organisms.................................................27
TRANSITORY REGULATIONS............................................28
FINAL REGULATIONS.................................................28
Article Ist.- The Central Reserve Bank of Peru is a public law legal person,
with autonomy subject to the limits prescribed by this law. Has a patrimony
of its own and an indefinite term.
Every time that in this law the word Bank is used, it shall be understood
that it is referring to the Central Reserve Bank of Peru.
Article 2nd.- The purpose of the Bank is to preserve the monetary stability.
Its functions are to regulate the amount of money, administer the international
reserves, issue bills and coins and inform on the national finances.
Article 3rd.- Within its autonomy and in observance of its purpose and
functions, the Bank is exclusively governed by this law and its by-laws.
Article 4th.- The provisions issued by the Bank in the exercise of its
functions have binding force for all the Financial System entities and,
in what may correspond, for the rest of individuals and corporations. The
provisions of general application enacted by the Bank within the present
law are named "Circulares" and shall be published in the Official
Bulletin.
Article 5th.- The authorized capital of the Bank is S/. 50'000'000 (Fifty
Millions and 00/100 New Soles) subscribed and paid by the State. No stock
certificates will be issued and the amount of capital is only recorded
in the Capital Account.
The Bank's capital can be modified by Supreme Decree countersigned by the
Minister of Economy and Finances.
Branches do not require a capital of their own to be established.
Article 6th.- The Bank must constitute the reserves indicated by this law.
Article 7th.- The Bank's legal domicile and main place of business is in
the city of Lima being authorized to establish branches, agencies and offices
in other places of the Republic as it shall consider convenient.
Article 8th.- The Board of Directors is the highest institutional authority.
It is concerned with the establishment of the polices to be followed in
order to achieve the purpose of the Bank and is responsible for the general
direction of its activities.
Article 9th.- The Bank is governed by a Board of Directors of seven members.
The Executive Branch appoints four members, among them the President of
the Bank. Congress shall ratify the latter and appoints the other three
members.
The Directors of the Bank are nominated for a period of five years. They
do not represent any particular interest or entity. Congress can remove
them because of a serious misconduct.
Article 10th.- The Board of Directors shall be renewed starting on July
28th of each year in which General Elections are held and necessarily within
thirty days of the initiation of the first ordinary legislature. This period
applies to the appointment and ratification of the Bank's President, as
well as for the appointment of the rest of Directors.
Article 11th.- The Directors must be Peruvian, have recognized moral solvency
and posses broad experience and competence in economics and finances. They
do not represent any entity or particular interest and their votes must
only take into account the accomplishment of the Bank's purpose and functions.
Article 12th.- In addition to the incompatibilities established by the
Constitution and special laws, the following have an impediment to be Directors:
a. The legally incompetent according to the Civil Code.
b. Convicts of a deliberate crime.
c. The bankrupt.
d. Debtors of tax obligations undergoing executory collection for an amount
exceeding five Taxation Units.
e. The managers or directors of corporations that have been declared in
fraudulent bankruptcy, provided that they have been found guilty after
a judicial procedure.
f. The managers or directors of an institution of the Financial System
found guilty of a serious offense by the Banking and Insurance Superintendency.
g. Those that directly or indirectly participate in the capital stock or
patrimony of a financial institution in an amount exceeding five per cent
of it.
h. Those that maintain complaints pending against the Bank.
I. The functionaries or employees of the Bank, unless being appointed President.
j. Two or more relatives within the fourth degree of consanguinity and
second degree of affinity, as well as husband and wife.
k. The well-known insolvent and those who have the majority of their assets
attached by definitive orders.
l. Those that although being residents do not appear in the relation of
Income Tax payers.
m. Those having outstanding debts with institutions of the Financial System
undergoing a judicial procedure for collection.
n. Those that in a direct or indirect way are majority shareholders of
corporations having outstanding debts with institutions of the Financial
System subject to a judicial procedure for collection, considering the
total participation of husband and wife and relatives as established by
article 53 rd. of the General Law of Banking, Financial and Insurance Institutions.
Article 13th.- Before taking office and within thirty days after leave,
every Director must make a sworn statement of their patrimony and rents
and the circumstance of not being subject to any of the impediments considered
under article 12th.
Article 14.- Before taking possession, the President, Directors and General
Manager make their oath of office before the President of the Supreme Court.
Article 15th.- The Directors cannot hold any post or executive position
in the Bank and, neither, have any individual administrative responsibility.
Article 16th.- The Directors are individually and severally responsible
for resolutions adopted with their participation. Their responsibility
does not disappear even if they except their vote, unless within the next
five days they give notice of their disconformity to the President through
a Notary Public.
Article 17th.- The office of Director shall vaccate because of:
a. Failure to incorporate as a member of the Board within thirty days after
ratification by Congress or appointment by the Executive, respectively,
have been produced.
b. Supervening legal incompability.
c. Death.
d. Permanent and severe incapacity.
e. Absence to four consecutive sessions or six sessions within a period
of six months, with the exception of licenses that cannot exceed of three
months.
f. Accepted renunciation.
g. Dismissal by Congress.
Article 18th.- The Directors shall renounce in writing before the President.
His' renunciation shall also be in writing and before the President of
the Republic.
Renunciation is accepted through a Supreme Resolution. In case it is not
enacted within the term of thirty days, renunciation is deemed as accepted.
Article l9th.- The renouncing Director must continue in office until his
replacement takes possession, unless thirty days shall elapse since renouncing.
Article 20th.- Directors can only be dismissed because of a crime or a
serious misconduct.
The resolution of dismissal must be adopted with a majority of two thirds
of the legal number of legislators and be necessarily preceded by an investigation
where the Director is given at least ten days to present his arguments
and orally make his plea in discharge before a plenary meeting of Congress.
Article 21st.- The approval of polices or regulations in violation of what
is established under Chapter Second of Title III is considered a serious
offense.
Article 22nd.- The filing of criminal charges against the Directors, for
acts they had performed or omissions in which they had incurred while in
exercise of their office and even after leaving it, requires the previous
impeachment proceedings established by the Constitution for high officers.
Article 23rd.- In case of vacancy, the new Director shall conclude the
period of the director he is substituting.
Article 24th.- The Board of Directors has the following authorities and
duties:
a. Formulate the monetary policy in accordance with the Bank's purpose
and approve the necessary regulations for its enforcement.
b. Observing the provisions set forth in Title III Second Chapter, establish
and regulate the limits and general conditions of the Bank's credit operations,
as well as determine and modify the applicable interest rates and commissions.
c. Determine, regulate and modify the additional fractional reserves of
the Financial System's entities.
d. Authorize the issue and establish the characteristics of the securities
to which the first part of article 62nd refers.
e. Approve the guidelines for the administration of the international reserves.
f. Approve the agreement of credit operations strengthening the Balance
of Payments.
g. Determine the interest rates and the Debt Readjustment Index established
by the Civil Code that are applicable to operations between economic agents,
excluding the entities of the Financial System.
h. Determine and regulate the issue, characteristics, exchange and withdrawal
of the bills and coins that the Bank puts into circulation.
I. Deliver the opinion that corresponds to the Bank in such cases as established
by the General Law of Banking, Financial and Insurance Institutions.
j. Request information from the Banking and Insurance Superintendent regarding
the economic and financial situation of the entities of the Financial System,
for the purpose of delivering the opinion referred in the preceding subsection.
k. Regulate compensation operations between banks.
l. Establish and impose sanctions for the non-observance of the Bank's
regulations.
ll. Reduce the amount of the fines that correspond to be imposed because
of the non-observance of the fractional reserves regulations or exonerate
the payment of such fines when the conditions established in the second
paragraph of article 56th. concur.
m. Approve and modify the Bank's by-laws, including the necessary Rules
for its operation.
n. Observing this law and the Bank's by-laws, approve and modify the necessary
rules for its operation.
n'. Approve, modify and supervise the Bank's annual budget.
o. Approve the Bank's annual report and financial statements.
p. Declare the incompatibilities and vacancies that may be produced among
its members.
q. Elect the Vice-President.
r. Establish Special Committees.
s. Appoint, after a proposal from the President, the General Manager and
the Chief of the Internal Control Organism.
t. Appoint, after a proposal from the General Manager, the senior officers
and the President of the Administration Council of the Deposit Insurance
Fund.
u. Establish the remuneration of the President and the Vice-President and,
after a proposal from the latter, the senior officers' salary.
v. Approve the establishing of offices located outside the central office.
w. Grant special or general powers of attorney.
x. Approve the Bank's participation in international events concerning
its functions and designate the respective delegations.
y. Authorize the construction or aquisition of real estate to be used as
offices for the Bank's activities and their sale.
z. Exercise other powers and functions that this law and the by-laws may
assign it.
The authority granted by subsection 1) can he delegated to the General
Manager.
Article 25th.- The Board of Directors shall, at least, meet in session
twice a month.
The quorum is of four members and all resolutions are adopted, at least,
with the uniform vote of such number of members.
Article 26th.- When the Board of Directors anticipates that it will not
be able to meet because of quorum, it may establish a Special Committee
formed exclusively by directors, in a number no less than three, for the
purpose of deciding matters of an urgent nature, determining in any case
those that shall require ratification.
Article 27th.- In every matter submitted before the Board, a proposal from
the General Manager must be presented. The Directors are entitled to request
the information they Consider necessary to issue their vote.
Resolutions regarding the First chapter of Title III require a technical
or legal report.
Article 28th.- All Directors are obliged to vote, exception made in those
matters where conflicts of interest may exist. The conflict is qualified
by the rest of Directors assisting to the meeting.
Article 29th.- The position of President is remunerated in accordance to
the decision of the Board of Directors.
The attendance fees of the Directors shall be determined by the Board of
Directors, as a function of the number of sessions attended;
Under the responsibility of the President, within fifteen days, the President
of the Republic and Congress shall be given notice of the adoption of any
resolution regarding the matters considered in this article.
Article 30th;- Whoever had performed a function as Director cannot be appointed
or hired to provide services to the Bank or for the Bank, under any Condition,
within the next three years upon leaving the position.
Article 3lst.- The Secretary General certifies the authenticity of the
Board of Directors' acts and the Bank's documents;
Article 32nd.- The President must devote exclusive dedication to his functions,
same that are not compatible with any other position, employment or service.
Article 33rd.- Attributions and duties off the President:
a. Supervise the observance of the Bank's purpose and functions as established
in the Constitution, this law and the By-laws.
b. Keep the Board of Directors informed of any matter that shall require
its attention.
c. Call the meetings of the Board of Directors, by his own initiative or
following a petition from two or more Directors or from the General Manager,
and preside its sessions.
d. Participate as a natural member of the Special Committees that shall
be established and preside the sessions to which he attends.
e. Conduct the relations between the Bank and the Public Powers, the international
organisms and the autonomous organisms.
f. Propose the appointment of the General Manager.
g. Others that shall be established in the By-laws or conferred by the
Board of Directors.
Article 34th.- The Vice-President is elected by the Directors. Substitutes
the President during his absence or temporary impediment, as well as in
cases of vacancy during the period when it is not covered.
Article 35th.- In the event of absence of the President or the Vice-President,
the authorities and duties referred in article 34th shall be performed
by the Director with the longest time in office and, in the event that
two or more of them are in the same condition, by the oldest Director among
them.
Article 36th.- The General Manager is in charge of the immediate direction
of the Bank's operations in their technical as well as administrative aspects,
for what he shall be responsible before the Board of Directors. He is the
chief of every officer or employee.
He must be competent in economics and finances and have recognized moral
solvency.
He cannot hold any charge or remunerated occupational activity, excepting
teaching at a superior level, to an extent that is compatible with his
responsibilities and with the previous approval from the Board of Directors.
Article 37th.- The impediments indicated in article 12th, excepting subsections
i) and j), are applicable to the General Manager.
Additionally, the husband, wife or relative of a Director or the President
within the fourth degree of consanguinity and second degree of affinity
cannot be appointed as General Manager.
Article 38th.- Authorities and duties of the General Manager:
a. Legally represent the Bank.
b. Direct the Bank's operations, in compliance with the Board of Directors'
general polices.
c. Attend the meetings of the Board of Directors, with voice but without
vote.
d. Propose to the Board of Directors the actions and resolutions that he
considers necessary for the best accomplishment of the Bank's objective
and its good functioning.
e. Supply the Board of Directors with the information, studies and proposals
required to facilitate its' decisions.
f. Propose to the Board of Directors the appointment of the senior officers
and of the President of the Insurance Deposit Fund Administration Council.
g. Propose to the Board of Directors the structure and remunerative levels
of the Bank's workers.
h. Observe and enforce the resolutions of the Board of Directors.
I. Conform as a natural member the Special Committees, excepting the one
established under article 26th and, when it shall be required, propose
to the Board of Directors the names of the officers that shall be part
of them.
j. In accordance to the By-laws, the polices established by the Board of
Directors and the available positions, hire the personnel he may consider
necessary to achieve the Bank's functions.
k. In accordance to the corresponding budget authorizations, decide the
acquisition of equipment, furniture and fixtures, as well as authorize
the ordinary expenses for the Bank's operations.
l. In accordance to the corresponding Regulation, impose sanctions or grant
licenses to the personnel.
ll. Others that this Law, the By-laws or the powers of attorney granted
by the Board of Directors may establish.
Article 39th.- In the event of absence or temporary impediment, the General
Manager is replaced by one of the Managers, appointed by the Board after
a proposal from the Chairman.
Article 40th.- The Bank's personal is subject to the laboural legal regime
of the private activity. Their income shall be established in accordance
to article 24th, subsection u) and article 38th, subsection g).
Article 41st.- Every person at the Bank's service is obliged to maintain
under reserve the information regarding confidential matters involving
the Institution or administered by it that he may acknowledge. The violation
is sanctioned with the removal or dismissal of the trespasser, depending
if they are Managers or employees of the Bank.
Article 42nd.- The issue of bills or coins is an exclusive power of the
State that is exercised through the Bank.
Article 43rd.- The bills and coins that the Bank puts into circulation
shall be expressed in terms of the Country's monetary unit and are of mandatory
acceptance for the payment of every debt, public or private.
Article 44th.- The Bank can also issue coins for numismatic or investment
purposes and agree upon their sale in markets located in the Country or
abroad.
Article 45th.- Following a resolution from the Board of Directors, every
contract entered by the Bank for the manufacturing of bills must be made
through an International Bid by Invitation, in accordance with the rules
to be determined in the By-laws.
Article 46th.- The Bank is authorized to deliver regulations that allow
it to maintain in circulation an adequate amount and quality of money.
Article 47th.- The Bank shall regulate what is necessary for the purpose
that in each one of its offices and in every institution of the Financial
System, bills and coins of one denomination are exchanged for bills and
coins of other denominations, on demand and at par, without any cost to
the public.
Article 48th.- The Bank replaces, on demand and at par, bills and coins
that are no longer usable.
The replacement of a bill does not legally proceed if half of more of it,
anverse or reverse, or its two numeration are missing.
Article 49th.- The bank must keep any counterfeit bills that are presented
for exhange for the purpose of putting them, if that is the case, at disposition
of the police or the judicial authorities for the corresponding legal enforcement.
The dispositions contained in this article apply to bills with an adulterated
denomination.
Article 50th.- The Bank, giving enough time for exchange, can withdraw
from circulation series or denominations of bills or coins that he had
issued.
Article 51st.- In accordance with the Civil Code, the Bank establishes
the maximum compensatory, moratory and legal interest rates for operations
between alliens to the Financial System.
The mentioned rates, as well as the Debt Readjustment Index and the interest
rates for the obligations that are subject to that system, must maintain
a relationship with the prevailing interest rates of the entities of the
Financial System.
Article 52nd.- The Bank shall encourage that, within the maximum rates
it may establish under its attributions, the interest rates charged by
the entities of the Financial System for their operations be determined
by free competition. Exeptionally, the Bank is empowered to fix maximum
and minimum interest rates with the purpose of regulating the market.
Article 53rd.- The Bank shall determine the additional fractional reserves
that the financial institutions must keep.
Article 54th.- The (encaje) funds are composed by the cash in possession
of the financial institutions and the deposits that they shall establish
with the Bank.
Article 55th.- The Bank defines the base, as well as the method for the
calculation of the additional (encajes).
In accordance with the General Law of Banking, Financial and Insurance
Institutions, it is empowered to determine the remuneration to be recognized
for the funds that conform such commission
Article 56th.- The financial entities that don't comply with the (encaje)
regulations will be sanctioned by the Bank with a fine.
In the event that it is proved that the breach was due to causes beyond
their control or to facts that have affected in a general way all the financial
institutions of the same nature, the Bank is empowered to reduce the amount
of the fine that should correspond and, also, to exonerate from that sanction.
Article 57th.- The Bank can impose fines to the Directors of the financial
institutions or whoever is acting as such for the violation of the (encaje)
regulations.
Article 58th.- The Bank grants credits with monetary regulation purposes.
Only the financial institutions that can be subject of the Surveillance
Regime established by the General Law of Banking, Financial and Insurance
Institutions have access to such credits, while not being under said regime.
Article 59th.- Regarding the credits, the following rules apply:
a. Their maturity period cannot exceed thirty calendar days.
b. They are preferentially guaranteed with first quality negotiable instruments.
c. The total amount granted to one institution cannot exceed its effective
patrimonial value.
d. Can be conditioned to the adoption of economic or financial actions
by the financial institution.
Article 60th.- The Bank establishes the interest rates applicable to its
operations.
Article 61st.- The Bank is empowered to buy in the secondary market securities
issued by the Public Treasury.
Under any event, the annual increment in the holding of such titles, appraised
at their acquisition cost, shall not exceed five per cent of the monetary
remainder determined at the closing of the previous year. This limit does
not include the bonds that the Public Treasury may have delivered for the
Bank's capitalization in accordance with the last part of article 93rd.
Article 62nd.- The Bank may effect open market operations with its own
titles and with first class securities issued by third parties, exception
made of shares.
Article 63rd.- The Bank is authorized to receive deposits.
Article 64th.- With the purpose of strengthening the payments balance,
the Bank is empowered to enter into agreements or effect operations with
foreign entities.
Article 65th.- The Bank is empowered to effect with other Central Banks
or the corresponding institutions, as well as with international financial
institutions and banks abroad, the following actions:
a. Receive and make deposits, in national or foreign currency.
b. Enter into credit and payment agreements that shall principally contribute
to facilitate foreign trade, as well as effect the operations and functions
that are required for the accomplishment of such agreements.
Article 66th.- The Bank is authorized to sell and buy reserve currency,
gold and silver.
Article 67th.- The Bank can provide to national or foreign financial institutions
with banking services that do not imply financing. In such cases, it is
authorized to charge a retribution for the services rendered.
Article 68th.- The Bank regulates the compensation operations between banks
in which it directly participates. It is under its competence to authorize
the constitution and functioning of other compensation chambers.
Article 69th.- The Bank represents the Country before the International
Monetary Fund and the Latin American Reserve Fund for the purposes provided
in their respective Establishing Agreements. It is in charge of all transactions,
operations and official relations with those institutions.
The Chairman of the Bank is Titular Governor before the International Monetary
Fund and Director of the Latin American Reserves Fund.
Article 70th.- The Bank can act as the Government agent in its relations
with multilateral credit organisms and financial entities of foreign govemments.
Article 71st.- For the purpose of administering the international reserves,
the Board of Directors shall take into account the criterion of security,
liquidity and profitability and evaluate them in function of the condition
and perspectives of the country's economy within the intrnational context,
following usual and healthy banking practices.
Article 72nd.- The international reserves are conformed by:
a. Gold and silver holdings.
b. Foreign bills and coins generally accepted as means for international
payments.
c. Deposits in reserve currency, payable on demand or for periods not exceeding
ninety days, with accredited banks in any business place abroad, as the
Board of Directors shall decide.
d. Certificates of Deposit in reserve currency, payable on demand or for
periods not exceeding ninety days, with accredited banks in any business
place abroad, as the Board of Directors shall decide.
e. Liquid first-class securities, issued by international organisms or
foreign public entities, as the Board of Directors shall decide.
f. Credited aceeptances issued by banks, easily negotiable abroad, for
periods not exceeding ninety days as from the date of acquisition by the
Bank.
g. Special Drawing Rights or any other substitute of gold as established
by the Constitutive Agreement of the International Monetary Fund that may
correspond to the Country.
h. The outstanding balance of the accounts established under the reciprocal
credit agreements that the Bank under the provisions of article 65th, subsection
b), might have entered with similar entities.
I. Contributions in gold, reserve currency or Special Drawing Rights to
international monetary organisms.
The stock of gold are entered at the value that the Board of Directors
determines, without exceeding the prevailing price in the international
market.
Article 73rd.- The Bank exclusively formulates the payments balance and
the monetary accounts.
Article 74th.- The Bank periodically informs about the condition of the
national finances and publishes the main national macroeconomics statistics.
The Bank, for the purpose established in the former paragraph and in accordance
with the regulations enacted by the Ministry of Economy and Finances, gathers
the necessary information from individual persons and public or private
corporations, being empowered to fine them in case of failure to perform
or for providing incomplete or inexact information.
Article 75th.- The Bank semestrally publishes the amount of the fines that
it is authorized to impose under this law.
Article 76th.- The Bank is authorized to use the compulsory process to
collect any imposed fines.
Article 77th.- With the exception of the modality established in article
61st, the Bank is prohibited to concede any financing to the Public Treasury.
It is also prohibited to do so in favor of the state-owned promotional
financial institutions.
Article 78th.- The Bank cannot grant credits or any other form of financing
to financial institutions that have with it due and unpaid debts.
Article 79th.- The Bank does not concede credits or advances to its Directors.
Article 80th.- The Bank is impaired of issuing sureties, guarantee bonds
or any other kind of guarantees or using any other form of indirect financing,
as well as granting any type of insurance.
The operations performed by the Bank in pursuance of the reciprocal payments
and credits agreements are not affected by the prohibition established
in this article.
Article 81st.- The Bank is forbidden of assigning resources for the constitution
of special funds with the purpose of granting credit or investing in the
promotion of a non-financial economic activity.
Article 82nd.- The Bank cannot issue titles, bonds or certificates of contribution
of mandatory acquisition.
Article 83rd.- The Bank is impaired of imposing sectorial or regional ratios
for the composition of the financial institutions' credit portfolio.
The Bank is prohibited of establishing multiple foreign exchange rates.
The regulations concerning foreign exchange that within its scope the Bank
enacts do not establish discriminatory treatments.
Article 84th.- The Bank is prohibited from buying shares, other than the
issued by international financing organisms or those that shall be necessary
for the rehabilitation of banking or financial institutions. It is also
prohibited from participating, directly or indirectly, in the capital of
commercial, industrial or any other kind of enterprises.
Article 85th.- The Bank cannot own more real estate property than what
is necessary for its activities and those that might be transferred as
payment of debts. The latter must be sold within a year since the date
they were acquired.
Article 86th..- The Bank has autonomy for budget purposes. It is responsible
for the programming, formulation, approval, execution, increase, modification
and control of the institution's budget.
Article 87th.- Notwithstanding the actions that the Chief of the Internal
Control Organism may deem necessary for the better achievement of his functions,
he is in charge of the Bank's ex-post budget and patrimony accounting;
the revision, inspection and audit of its operations; the supervision of
the use of funds and the custody of securities, being bonded to inform
about all of the later to the Board of Directors and the General Comptroller
[of the Republic].
The Chief of the Internal Control Organism is subject to the same limitations
that article 37th imposes to the General Manager.
Article 88th.- The Bank's financial term is of one year and is closed on
the 31st of December.
The financial statements are prepared in accordance with the general accepted
accounting principles, in what they shall be applicable to Central Banking,
and the rules established by the Banking and Insurance Superintendency
to that effect.
Article 89th.- The differences that might be registered as a consequence
of the readjustment in the valuation under terms of national currency of
the Bank's assets and obligations in gold, silver, reserve currency, Special
Drawing Rights or other monetary units of international use, shall be credited
in a special account and not considered either as a gain or as a loss.
Article 90th.- Not after that the Board of Directors' last session during
the month of March is held, the Chief of the Internal Control Organism
presents a written report concerning the financial statements involving
the previous term and sends a copy of it to the General Comptroller and
the Banking and Insurance Superintendency.
Article 91st.- After approval by the Board of Directors, the Bank shall
publish in the Official Bulletin the Annual Balance and the Gains and Losses
Statement, audited and informed by the Chief of the Internal Control Organism.
Monthly, the Bank also publishes in the Official Bulletin a summary of
its Balance Sheet.
Article 92nd.- The net gains shall be annually distributed in the following
way:
a. Twenty five per cent for the Public Treasury.
b. Seventy five per cent to constitute and increase up to the equivalent
of one hundred per cent of its capital a reserve fund that, preferentially,
shall be destined to capitalization.
The amount that corresponds to the Public Treasury is reduced to the amount
necessary to cover the outstanding balance in the accounts that it shall
maintain with the Bank.
Article 93rd.- In the case of a loss, the reserve fund referred in subsection
b) of the former article shall be applied. If the reserve is insufficient,
within thirty days after the Balance is approved, the Public Treasury emits
and delivers to the Bank non-negotiable and interest accruing debt titles
for the outstanding amount.
Article 94th.- Notwithstanding the responsibility that corresponds to the
Bank for the observance of the purpose that this law assigns to it, the
Board of Directors must file before the Minister of Economy and Finances
a Report regarding all such aspects of the economic policy that are negatively
affecting such observance.
Article 95th.- The Bank is subject to the subsequent control by the General
Comptroller exclusively in matters concerning the execution of its budget.
Article 96th.- In accordance with the Organic Law, the Banking and Insurance
Superintendency shall supervise the observance of the Organic Law, the
by-laws and other regulations concerning the Bank.
Article 97th.- The Banking and Insurance Superintendency will provide the
Bank with all the general and specific information that it may deem necessary
for the accomplishment of its functions.
FIRST.- With the modifications resulting from this law, the existing by-laws
shall remain in force until the new by-laws are enacted.
SECOND.- The incumbent Board and its Chairman will remain in office until
July 28th, 1995.
THIRD.- With the purpose of determining its real patrimony, within ninety
days from the date that this law is in force, the Bank shall formulate
and approve a Balance as of December 31st 1992 where its assets and liabilities
are expressed at market prices.
FOURTH.- Within the next ninety from the date that the Bank's real patrimony
is determined, the Public Treasury shall approve by Supreme Decree the
mechanism and schedule that enables the Bank to reach the capital established
in article 5th.
FIFTH.- Article 12th, subsection I) shall enter in force starting on July
28th, 1995.
FIRST.- The Supreme Decree No. 295-68-HC, the laws that alter it and any
other law in opposition to the present are herewith repealed.
SECOND.- This law shall enter in force on January 1st, 1993.