Act No. 144 / 1949 Coll.
Law on the deleveraging of the volumes of the People's Administration
Valid
Effective from 11.06.1949
144.
Law
of 11 May 1949
on the deleveraging of the ties of the People's Administration.
The National Assembly of the Czechoslovak Republic decided on the following Act:
Range of debt relief.
(1) The State shall, as at 31 December 1948, settle the debts of the bundles of the People's Administration, the School Municipality and the School Debit (hereinafter referred to as the "People's Administration Bundles") from domestic loans with the exceptions set out in paragraphs 5 and § 2 to 4.
(2) The state will also settle the debts of the former Czech and Moravian-Silesian countries, the former Slovak and former counties in Slovakia.
(3) People's administrations' bundles must not conclude new loans. Unspent proceeds of loans concluded previously may only be used to cover investments made under a two-year economic plan or included in a five-year economic plan.
(4) In agreement with the Ministry of the Interior, the Ministry of Finance may allow exemptions from the ban on the conclusion of new loans for loans to associations of the People's Administration under § 22 (a) of the Act of 12 April 1946, No. 86 Coll., on construction renewal, as amended by the Act of 12 June 1947, No. 115 Coll., or for other loans.
(5) Debts from loans concluded by the bundles of the People's Administration in 1949 will be taken over by the State on 31 December 1949.
(1) Debts on loans which have been or will be taken over by communal or national undertakings under the relevant regulations or to which national undertakings have entered are excluded from taking over and settlement.
(2) If it is further apparent that the debts of loans covered by paragraph 1 have been taken over by the State and settled, the municipal or national undertaking may be ordered to provide appropriate compensation to the State.
(1) In addition, debts arising from loans to public authorities' associations which have been concluded for the benefit of third parties shall be excluded from taking over and settlement if those third parties are obliged to perform the debt service directly to the creditor or to compensate the debtor for the costs of the debt service undertaken by him. On 1 January 1949, these third parties become debtors of such loans to the place of the existing debtors and the current debtors are exempt from these debts. However, if the third party is a State, such debts will be taken over and settled in accordance with § 1.
(2) The provisions of paragraph 1 shall apply mutatis mutandis to debts arising from loans concluded by the former country by the Czech or Moravian-Silesian authorities for the benefit of third parties under the conditions set out therein.
(1) The takeover and settlement are also excluded from the debts from the loans of the volumes of the People's Administration, which are covered by the provisions of Section 1 of the Act of 6 May 1948, No 133 Coll., on the repayment of loans guaranteed by the State under certain laws on construction and the amendment of the Act on compensation under the laws on construction.
(2) The volumes of the People's Administration are exempt from compensation under the Act of 21 December 1937, No. 260 Coll., on Reimbursement under the Act on Construction, unless the Reimbursement was made available before the date of publication of the Act.
(1) The claims of creditors against the ties of the People's Administration on guarantees assumed as foreign liabilities will cease on the day of the publication of this Law. However, the State shall assume guarantees for such foreign liabilities, if this is economically justified.
(2) People's administrations' associations may, in future, assume guarantees for foreign liabilities only within the limits laid down by the Ministry of Finance in an agreement with the Ministry of Interior.
(3) Paragraph 1 applies mutatis mutandis to guarantees taken over by the former country by the Czech or Moravian-Silesian authorities.
(4) The State guarantee will be taken over by the State on the basis of an application to be submitted by the creditor within six months of the date of the publication of this Act by the State Debt Directorate, Slovakia, by the Finance Board. The Ministry of Finance may, in cases of special consideration, waive the consequences of the delay.
(5) Applications shall not be submitted if they are for guarantees for sub-debits.
(1) Whether the debts arising from loans received by the State pursuant to § 1 or transferred to third parties pursuant to § 3, whether and to what extent compensation will be imposed pursuant to § 2, paragraph 2, whether the State assumes a guarantee for a foreign liability pursuant to § 5, as well as whether the other conditions laid down by the law are met, the Ministry of Finance will decide in an agreement with the Ministry of Interior and, as regards national undertakings, in an agreement with the competent Ministry, in the case of the authorities empowered to do so.
(2) The Ministry of Finance will adapt the procedure for the acceptance of debts and guarantees by the State by means of directives which it issues in agreement with the Ministry of Interior and Social Welfare and published in the Official Journal.
How to take over and settle.
A. Debt issues.
(1) On 1 January 1949 government bonds become
(a) sub-debits issued by the People's Administration (Land and Urban Loans);
(b) municipal debt bonds issued by monetary institutions, excluding municipal debt bonds referred to in § 16 (1) (b).
The bank bonds of the former "Central Bank of Czechoslovak savings banks" are also regarded as municipal debt bonds within the meaning of this Act.
(2) Where debt bonds, converted into sovereign debt (hereinafter referred to as "debt bonds'), have been issued to debts which are excluded from taking over and settlement by the State, they shall be treated in accordance with Article 2 (2), paragraph 2, following the procedure laid down in Article 10 (2).
(1) The debt service of debentures issued by the end of 1945 will take place from 1 January 1949 in accordance with the rules on the debt service of internal government debt from before the end of 1945. The provisions of debentures which otherwise govern the debt service shall cease to apply.
(2) The advances paid on the interest on those debentures, adults after 31 December 1945, pursuant to § 20 (1) (b) of the President's Decree of 20 October 1945, No 95 Coll., on the deposit and other claims on cash institutions, as well as life insurance and securities, are deemed to have been settled for the relevant period. The amount thus paid to the owners of municipal debentures less than would otherwise be due shall be borne by the Investment Bank, the national firm, to the Treasury.
(3) The interest rate under which interest payments were made between 1946 and 1948 for interest on debtors is also applicable to further interest payments.
(1) Debt service of debentures issued after 31 December 1945 shall continue to be carried out in accordance with current contractual terms. Where interest is payable twice a year, it shall continue to be paid only once a year, each three months after the first maturity date of each year.
(2) The Minister of Finance is hereby authorised to offer to the owners of such debentures in exchange for a new State loan at the time and under the conditions specified by him.
(1) An investment bank, a national firm, as the legal successor to the money institutions that issued the municipal debt bonds, converted from 1 January 1949 into sovereign debt (§ 7 (1) (b)), shall write off and be charged by the State the loans which its legal predecessors have granted to the unions of the people's administration (after the former volumes of the local authorities) and on whose basis the municipal debt bonds have been issued.
(2) If the nominal price of municipal debentures, converted into sovereign debt, would be higher than the written-off capital of covering loans, the Investment Bank, the national firm, the State would pay the difference by write-off of other municipal loans or sovereign debt.
(3) Loans which are excluded from taking over by the State (Sections 2 to 4) cannot be used to cover municipal debt obligations converted into sovereign debt.
(4) Anuities from cover loans, due before 1 January 1949, go to the detriment of an existing debtor. Interest on debentures due before 1 January 1949 (interest advances) as well as the repayment of the capital due on debentures made before 1 January 1949 shall be paid by the Investment Bank, the national undertaking.
(5) At the same time as the capital owed between the State and the Investment Bank, the national firm, will be charged and compensated for the salaries paid or received for the interest service of municipal debentures and debited covered bonds, as well as other liabilities and claims linked to their debt service. This bill shall be made on 1 January 1949.
B. Debt not issued.
(1) The non-issue debts of the volumes of the People's Administration from the loans will be taken over and settled by the State on the basis of an application to be submitted by the creditor within six months of the date of publication of the law and, if the cases referred to in Paragraph 1 (5) are referred to, by 30 June 1950, in accordance with the formula laid down in the Directives of the Ministry of Finance (Section 6 (2)). The Ministry of Finance may, in cases of special consideration, waive the consequences of the delay.
(2) The application is submitted to the Government Debt Directorate in Prague, Slovakia, the Finance Board.
(3) The claims of creditors against the volumes of the People's Administration, which are not registered in accordance with paragraph 1, shall cease.
(4) The provisions of paragraphs 1 to 3 apply mutatis mutandis to the settlement of non-emission debts of former Czech and Moravian-Silesian countries, former Slovak and former jams in Slovakia.
(1) Debt shall be settled at the date of the first interest payment following 31 December 1948 according to the current contractual terms.
(2) Interest and amortisation instalments (annuities), which also cover the period before 1 January 1949 and which should have been paid by the existing debtor under the current contractual terms:
(a) before 1 January 1949 (on payment in advance), they shall go to the account of the existing debtor and shall not be taken into account in settlement between the State and the creditors;
(b) after 31 December 1948 (late payment), the State which manages them at the same time as the capital due shall pay, but the interest rate shall not exceed 3 1 / 2%.
(1) The State shall settle the debt to be taken over by a non-issue, after having raised interest pursuant to Paragraph 12 (2) (b), state bonds issued by the Minister of Finance to the extent necessary for that purpose.
(2) The creditor is obliged to accept these bonds at a nominal price instead of cash. Thus, all of his rights and claims arising from the settled loan and the facilities, excluding any entitlement to annuities, which go to the account of an existing borrower [§ 12, par. 2, par. (a)], cease.
(3) The sum of debts taken over against the same creditor is rounded down to a sum divisible by a thousand and government bonds are provided for the amount thus determined. Any difference shall be paid in cash.
(4) The provisions of paragraphs 1 to 3 shall not apply to debt taken over at a non-emission interest rate of less than 3%. The Treasury will decide how such debts will be settled.
(1) In order to repay the non-emission debts taken over, which originated before 1 November 1945, the Minister for Finance will issue a unifying loan whose bonds will be credited to creditors by the Postal Savings Bank, a national enterprise in Prague.
(2) The bonds of the unifying loan which were thus credited to the creditor are considered as bonds deposited by him in custody and registered under Decree No. 95 / 1945 Coll.
(3) Until any other adjustment is made, the debt service of the unifying loan bonds referred to in paragraph 1 shall be held under the internal government debt service provisions from before the end of 1945. Interest shall be paid at the rate:
(a) 3 ½% if the debts taken over were remunerated at a rate of 3 ½% or more,
(b) 3% if the debt received was remunerated at a rate of 3% or more but less than 3 ½%.
(1) In order to repay the non-emission debts taken over, which dates back to 31 October 1945, the Minister of Finance will issue a 3% State loan available between 1960 and 1989 in bearer bonds of 1.000, 5.000, 10.000, 50.000, 100.000 and 1,000.000 Kns.
(2) Interest of 3% of the State loan payable between 1960 and 1989 will be paid once a year on 16 May, for the first time on 16 May 1950.
(3) 3% of the State loan payable between 1960 and 1989 will be amortised according to the amortisation plan, drawn up on the basis of approximately the same annual annuities, either by free purchase, but not above the nominal price or by composition, at the choice of the financial administration. The composition, if it occurs, will always take place in March; the capital drawn up shall always be paid on 16 May.
(1) According to § 11 to 15, loans which have been granted by monetary institutions to the unions of the People's Administration (former territorial authorities) and which are covered by:
(a) mortgage certificates or debt certificates or debt certificates issued by monetary institutions, excluding bank debt certificates of the former "Central Bank of Czechoslovak savings banks";
(b) communal debentures denominated in the Reichsmark issued by the Landesbank und Girozentrale für das Sudetenland (now the "Regional Bank and the Vrír Headquarters in liquidation") in Liberec during the period of infreedom.
(2) The monetary institutions to which paragraph 1 applies may pay back the deposit certificates or debt certificates issued by them or debt certificates issued by them or by banks or by communal debt certificates which they receive from the State in the settlement of loans granted to public authorities. their owners are obliged to accept these government bonds instead of cash transactions. Article 14 (3) applies mutatis mutandis to the interest rate on these sovereign debt. The Ministry of Finance shall adapt the details by means of a decree in the Official Journal, which shall also determine the ratio in which the municipal debt bonds denominated in the Reichsmark will be repaid and the date on which the interest will be refunded.
The transfer of certain assets and liabilities of the ties of the People's Administration to the State.
(1) The following property is transferred to the State without compensation:
(a) deposits and other monetary claims on monetary institutions, linked to the decree of the President of the Republic of 19 October 1945, No 91 Coll., on the renewal of the Czechoslovak currency;
(b) securities registered under Decree No. 95 / 1945 Coll. and government bonds, issued at the Prague State Debt Directorate or at the Treasury for Slovakia in Bratislava;
(c) claims and claims which have become doubtful or unfeasible as a result of war events or the organisation of state-law regimes;
(d) claims for compensation for nationalised property;
(e) claims for repayment of overpayments in interest resulting from interest rate reductions under Paragraph 23;
(f) claims for relief under § 2 or § 3 of the Act of 1 December 1948, No. 271 Coll., on relief in the performance of certain obligations under the Reichsmark, provided that such relief is due to debts on loans taken over by the State under this Act and that the creditors have not already granted them before the date of publication of this Law;
(g) claims and other claims on the National Recovery Funds or Land Reform Funds on liabilities relating to confiscated property or property derived from land reform.
(2) The assets of the remaining assets of the Czech and Moravian-Silesian countries referred to in § 39 (3) (a) to (e) of the Act of 21 December 1948, no 280 Coll., on the Regional Establishment, with the exception of cash and free deposits.
(3) Cash, deposits, shares, securities and claims of former Sudeten County are transferred to the State.
(4) The State shall apply the values referred to in paragraphs 1 to 3 for reimbursement under § 18 to 20 and, where applicable, the remainder to the reduction of the State debt.
(1) The bundles of the People's Administration, following the case of municipal undertakings, are exempt from the obligation to pay the allocation (purchase) price for the assets which have been or will be allocated to them by 31 December 1949 in accordance with the rules applicable to the distribution of confiscated property and property acquired from land reforms, provided that the allocation (purchase) price has not been paid before the application of this Act.
(2) The communal undertakings, following the ties of the People's Administration, are exempt from the obligation to provide the Fund for a nationalised economy with compensation for the nationalised property, which it has committed to them by 31 December 1949.
(3) The Ministry of Finance shall, after hearing the National Recovery Funds, decide, in the case of the National Economy Fund or Land Reform Funds, how the obligations which are exempt from the ties of the People's Administration and the municipal enterprises referred to in paragraphs 1 and 2 will be dealt with cumulatively. In the same way, claims and claims transferred to the State under the provisions of § 17 (1) (g) will be settled.
(4) The provisions of paragraphs 1 to 3 shall apply only to the assets, claims and claims included in the lists which shall be made by the people's administrations and municipal undertakings and which shall be examined and, where appropriate, supplemented by the relevant National Recovery Fund, the NFE or the relevant Land Reform Fund.
(1) The volumes of the People's Administration are to be submitted by the end of 1949 to the National Recovery Funds, following the case of the National Land Fund at the Ministry of Agriculture or the Slovak Land Fund in charge of agriculture and land-based reforms to account for confiscated cash, money security and advances received for the purchase price of confiscated movable goods, as well as for the economic result obtained between 1945 and 1948 by the sale of confiscated movable property or by renting confiscated property.
(2) The accounts submitted by the popular authorities' associations referred to in paragraph 1 shall be subject to examination; In doing so, the ties of the People's Administration shall provide the Funds referred to in paragraph 1 with all necessary information and explanations. The commitments of the People's Administration under this bill to these funds, unless they have been or will not be paid by the transfer of confiscated values or by the own funds of the People's Administration, may be settled in accordance with the terms of Paragraph 18 (3).
(1) The loans granted by the Postal Savings Bank, a national company in Prague, to certain creditors for their claims for the bundles of the People's Administration in the territory temporarily occupied by Hungary are considered to be payments for these claims, unless the loans were paid to the Postal Savings Bank, a national enterprise in Prague, before the application of this law.
(2) Where the Postal Savings Bank, a national enterprise in Prague, has granted loans for claims for the volumes of the People's Administration, which are not now in the territory of the Czechoslovak Republic, the Ministry of Finance may exempt debtors from these loans of their obligations to the Postal Savings Bank, a national enterprise in Prague.
(3) The debts of the Postal Savings Bank, a national enterprise in Prague, shall be paid by the State on loans which will expire against the original debtors in accordance with the provisions of paragraph 1 or 2.
Cancellation of auxiliary funds for debt adjustment of counties and municipalities.
The aid funds for the debt adjustment of districts and municipalities, established pursuant to Article III of the Act of 9 April 1935, No 69 Coll., on financial measures in the field of local government, are hereby repealed. Since 1 January 1949, their assets and capital constitute the balance sheet managed and liquidated by the Ministry of Finance in an agreement with the Ministry of Interior. Liquidation surplus goes to the state.
Administrative commitments from the period of infreedom.
(1) The volumes of the People's Administration are not bound by works and supplies carried out at a time of infreedom by former territorial authorities, provided that such works and supplies served exclusively the interests of the occupying power. The Regional National Committee shall decide whether such work or supply served solely the interests of the Occupation Authority, at the request of a creditor or a union of the People's Administration.
(2) Even in cases where work or supply served solely the interests of the occupying power, the creditor may claim compensation from the People's Administration for the benefit of that work or of the supply of the people's administration's unions on 5 May 1945.
(3) If the right to work (supply) has been exercised against the union of the People's Administration by legal proceedings, which is interrupted under the Law of 16 May 1946, No 129 Coll., on procedural measures in proceedings for certain claims from the period of infreedom, the applicant (the applicant) may, if the proceedings continue, amend the original action (the proposal) without the consent of the other party by seeking compensation under the preceding paragraph. The decision on costs shall be disregarded.
(4) The provisions of paragraphs 1 to 3 shall apply mutatis mutandis to commitments arising from works and supplies which have been carried out (fulfilled) at the time of the non-freedom of the former Sudeten County. However, this is where an entity already transferred in the course of the liquidation of the assets to which these liabilities belong and, in the absence of such entities, the State enters the place of the relevant volume of the People's Administration.
Final provisions.
(1) The applicability of the provisions of the Government Decree of 5 September 1942, No 324 Coll., on the remuneration of long-term municipal loans and municipal debentures, and of the Government Decree of 24 February 1943, No 56 Coll., on the remuneration of certain long-term loans and on the remuneration of mortgage bonds and other bank debentures, which provided for an interest rate of 4 3 / 8% per annum for loans to local authorities (2 3 / 16% semi-annual), as the highest and lowest rates including the administrative allowance, is hereby abolished as regards the loans to local authorities concluded after 31 December 1945. The administrative contribution for such loans may not exceed 1 / 2%.
(2) With regard to non-emission loans, the applicability of the provisions referred to in the first paragraph and the applicability of the provisions of Paragraph 3 (2) of the Law No. 324 / 1942 Coll. with effect from 1 July 1946 shall be abolished. From that date until 30 June 1947, the maximum interest rate on such loans shall be 4% per year and from 1 July 1947, 3 3 3 / 4% per year, provided that the interest amounts in question have not already been booked as payments by the creditor institutions or have been recognised as receivable at the end of the accounting year.
(1) People's administrations' bundles must not use the funds intended for the service of their debts in their 1949 budgets.
(2) For self-sufficient volumes of the People's Administration, the replacement allocation is reduced by an amount which would otherwise require the service of their debts assumed by the State under this Act.
(3) Expenditure incurred by the State in 1949 on the taking over and settlement of debts of the volumes of the People's Administration and of the former countries shall be reimbursed by savings in the national allocations of those volumes and former countries, as well as in the allocations to the auxiliary funds for adjusting the debts of the counties and municipalities.
The lien rights in public books on the property of the volumes of the People's Administration for claims on loans received and settled by the State, as well as for claims terminated pursuant to Article 5 (1), (11) (3), (13) (2), (2), (2), (2), (2), (3) and (3) of the Act, shall be extinguished and deleted on the basis of a proposal from the State Debt Directorate and, if the guarantee is in Slovakia, on the basis of a proposal from the Finance Officer, with reference to that Act.
Legal acts, documents and official acts necessary for the implementation of this Act shall be exempt from fees and charges.
By the date of the publication of this Act, the provisions of Article III of Act No. 69 / 1935 Coll., Paragraph 7 of the Act of 7 November 1940, No 290 of the Act amending certain provisions on the financial management of cities and municipalities, Section 10 of the Act of 20 December 1946, No 249 of the Act of 24 November 1940 on the provisional arrangements for the financial management of territorial authorities and of certain other persons under public law, as amended by the Act of 20 July 1948, No 205 of the Act of 20 December 1946 amending and supplementing the provisions on the provisional arrangements for the financial management of human administration and certain other persons under public law, and Regulation No 324 / 1942 Coll., if the applicability of certain provisions of this Government Regulation has not already been abolished in § 23.
This Act shall take effect on the day of its publication; It shall be carried out by the Minister of Finance in agreement with the Ministers of the Interior and Justice and other participating members of the Government.
Gottwald v. r.
Dr John v. r.
Zaporocký v. r.
Cable v. r.
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Regulation Information
| Citation | Act No. 144 / 1949 Coll., on the deleveraging of the volumes of the People's Administration |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 11.06.1949 |
|---|---|
| Effective from | 11.06.1949 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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