Act No. 144 / 1970 Coll.
Law on the Czechoslovak State Bank
Valid
Effective from 01.01.1971
144
THE LAW
of 21 December 1970
concerning the Czechoslovak State Bank
The Federal Assembly of the Czechoslovak Socialist Republic decided on this law:
Basic provisions
The Czechoslovak Bank *) ("the Bank ') is the central bank of the Czechoslovak Socialist Republic.
(1) The designation of the bank is "State Bank of Czechoslovakia" or "Štátna Bank of Czechoslovakia."
(2) The seat of the bank is Prague.
(3) The Bank may acquire rights and undertake rights on its behalf.
Bank
(a) has the exclusive right to issue banknotes; together with the Federal Ministry of Finance, proposes to the Government of the Czechoslovak Socialist Republic the adjustment of the Czechoslovak currency and the principles of the circulation of legal money and oversees the protection of the currency,
b) Determinates the course of the Czechoslovak Crown to foreign currencies on the basis of principles approved by the Government of the Czechoslovak Socialist Republic; determines the price of gold in banking operations,
(c) accept deposits in accounts;
(d) provides loans;
(e) organise and carry out payment operations as well as clearing for organisations;
(f) participate, to the extent and in a manner specified by specific provisions, in the regulation and control of wage developments;
(g) carry out the financing of investment construction carried out by socialist organisations and carry out its control accordingly;
(h) carry out the treasury implementation of the State Budget of the Federation and of the State budgets of the Republics;
ch) manages the currency reserves of the Czechoslovak Socialist Republic in gold and other foreign exchange means;
(i) purchase, exchange and sell gold and other foreign exchange assets;
j) represents the Czechoslovak Socialist Republic under the authority of the Government of the Czechoslovak Socialist Republic in international banking institutions;
(k) perform functions in the foreign exchange area under the foreign exchange management rules;
(l) receive and provide loans and guarantees in contact with foreign exchange aliens;
(m) lay down the principles governing the granting and acceptance of foreign bank loans;
(n) organise and conduct payment and other banking activities in contact with foreign countries;
o) carries out further activities as directed by the Government of the Czechoslovak Socialist Republic.
(1) In order to ensure the tasks and objectives of the national economic development plans, the Bank shall, in cooperation with the competent authorities, prepare and submit to the Government of the Czechoslovak Socialist Republic for approval the draft principles of internal and foreign banking monetary policy and the draft monetary (credit, treasury and foreign exchange) plan according to which the Bank carries out the activities referred to in Article 3; it shall participate in the implementation of the tasks and objectives of the national plans for the development of the national economy and promote measures to consolidate the currency.
(2) The principles of internal and foreign banking monetary policy, approved by the Government of the Czechoslovak Socialist Republic, are binding on all monetary institutions and other organisations; the monetary plan shall be binding on the monetary institutions and organisations to the extent that they are implemented.
The Bank may entrust other monetary institutions or other organisations or bodies with certain tasks reserved to the Bank; unless otherwise provided for, the mandated monetary institutions, other organisations and authorities shall apply mutatis mutandis to the provisions applicable to the Bank.
(1) The Bank is entitled to control, in particular, the participation in planning work and the granting of loans and foreign exchange funds, as the socialist organisations use all-social funds.
(2) Organisations shall submit the necessary documents to the Bank, provide it with the required information, allow on-the-spot verifications and otherwise allow it to carry out its functions.
(3) If the Bank finds shortcomings in the management of socialist organisations, it shall be entitled to require them and their superior authorities to remedy these deficiencies and, where appropriate, to apply measures against organisations provided for in specific regulations.
(4) The provisions of paragraphs 1 to 3 shall apply to cooperative organisations and social organisations only where the Bank grants them credit or foreign exchange facilities and where the Bank applies control functions in accordance with specific rules.
Management and organisation of the Bank
(1) The Bank is managed by the President of the Bank; It shall be represented in full by the Vice-President of the Bank and, at the various sections of the Bank's activities, by the President of the Bank, by the Directors-General of the Bank. If the President of the Bank is a citizen of the Czech Socialist Republic, the Vice-President of the Bank is a citizen of the Slovak Socialist Republic or vice versa.
(2) The President of the Bank is appointed and dismissed by the President of the Czechoslovak Socialist Republic on a proposal from the Government of the Czechoslovak Socialist Republic. The Vice-President of the Bank and the Managing Director of the Bank shall appoint and dismiss the Government of the Czechoslovak Socialist Republic on a proposal from the President of the Bank.
(3) The President of the Bank shall have the status of Head of the Federal Central Authority.
(4) The President of the Bank, in agreement with the Minister of Finance of the Czechoslovak Socialist Republic, proposes essential financial and monetary measures to the Government of the Czechoslovak Socialist Republic; If these measures have an impact on the state budget of the Republic, they shall proceed in agreement with the Minister for Finance of the Republic.
(5) The President of the Bank shall, on the basis of this Act, and where appropriate, in order to implement the Economic Code, issue generally binding legislation on:
(a) lending;
(b) interest rates on loans and on funds from organisations in accounts with monetary institutions, as well as on fees, refunds and flat rates of compensation for the conduct of banking operations and services;
(c) the use of other banking instruments in the field of internal and foreign currency relations;
(d) the implementation of financing and the banking control of investment construction carried out by socialist organisations;
(e) domestic and foreign payment and settlement;
(f) treasury operations in socialist organisations and exchange activities.
The Bank carries out its activities through the headquarters in Prague, the main constitution for the Czech Socialist Republic in Prague, the main constitution for the Slovak Socialist Republic in Bratislava (hereinafter referred to as the "main institutes"), branches or other organisational units.
(1) The Centre carries out the national design, management and control activities of the Bank.
(2) In order to safeguard the tasks and objectives of the national development plans of the national economy, the headquarters shall, in cooperation with the main institutes, develop draft principles of internal and foreign banking monetary policy, the draft monetary plan and the creation of monetary reserves, as well as principles, rules and instruments for the performance of the tasks and activities of the Bank.
(3) Headquarters
(a) ensure the performance of the Bank's activities towards organisations managed by the Federation's authorities;
(b) ensure the performance of the Bank's activities in relation to abroad;
(c) ensure uniform performance of the Bank's tasks and activities in all its organisational units and control of their activities;
(d) carry out other activities in accordance with the Bank's Statute and the Bank's Chairman's instructions.
(4) The exercise of the activities of the Bank referred to in paragraph 3 (a) and (c) shall, in principle, be ensured by the Headquarters through the main institutes.
(1) The main institutes are managed by the Directors-General as Vice-Presidents of the Bank ("Directors-General of the Main Institutions").
(2) The Director-General of the main institutes is appointed and dismissed by the Government of the Czechoslovak Socialist Republic after consulting the competent government of the Republic on a proposal from the President of the Bank.
(3) The Director-General of the Central Institute is responsible for the performance of his duties as President of the Bank; it shall also be responsible for the implementation of the tasks referred to in paragraph 4 (a) to (d), in accordance with decisions given by the Government of the Republic.
(4) Main Constitution
(a) participate in the preparation and development of the monetary plan in the Republic and ensure the tasks of the Bank as a result of national plans for the development of the national economy;
(b) draw up and discuss with the competent authorities of the Republic draft principles of credit policy, drafts of the treasury and credit plan for the Republic and coordinate with them a reciprocal procedure;
(c) ensure the tasks of the Bank arising from the government of the Republic;
(d) ensure the tasks arising for the Bank from the monetary plan; to that end, they shall have the resources and resources determined by the breakdown of the monetary plan in the Republic; the availability of funds and resources intended for organisations, managed by the authorities of the Republics, is bound by national, generally binding provisions of the President of the Bank;
(e) manage and control the organisational units of the Bank in the territory of the Republic.
(5) The main institutes carry out other activities according to the Bank's Statute and the Bank's Chairman's instructions.
The Bank shall be signed jointly by the President of the Bank and the Vice-President of the Bank or by one of them and the Director-General. The scope of the authorisation of additional staff to sign as a bank shall be determined by the Bank's organisational rules.
Bank management
The Bank has a statutory fund, a general reserve fund or other funds provided for by the Government of the Czechoslovak Socialist Republic.
The statutory fund amounts to five billion CZK and serves to secure the bank's liabilities. The Government of the Czechoslovak Socialist Republic may, as appropriate, increase the statutory fund and determine the means from which the increased part of the statutory fund will be completed.
The general reserve shall be provided with profit allocations until it reaches the level of the statutory fund.
The Bank operates according to the principles established by the Government of the Czechoslovak Socialist Republic. The Bank is obliged to transfer some of the profits to the State Budget of the Federation according to principles approved by the Government of the Czechoslovak Socialist Republic. The annual accounts, together with the annual report, are approved by the Government of the Czechoslovak Socialist Republic.
The loss of the bank shall be borne by the general reserve fund; if this fund is not sufficient to cover the loss, it is paid by the Czechoslovak Socialist Republic.
General provisions
The Bank is not liable for the obligations of the Czechoslovak Socialist Republic or the Czech Socialist Republic or the Slovak Socialist Republic, unless it expressly assumes such guarantee. The Czechoslovak Socialist Republic, the Czech Socialist Republic and the Slovak Socialist Republic guarantee the bank's commitments, only if expressly provided for.
In order to calculate the interest on the amounts collected or received for the benefit of the organisation's accounts and the balances on those accounts as well as on the loans granted, the settlement of the relevant amount in the bank shall be determined.
The provisions of § 23 of Act No. 84 / 1952 Coll., on the organisation of the money industry, do not apply to the staff of the Bank.
The activities, organisation and management of the Bank are governed in more detail by the Statute approved by the Government of the Czechoslovak Socialist Republic.
Final provisions
The rights and obligations of the institutes referred to in § 2 of Act No. 31 / 1950 Coll., which were not transferred according to the Order of the Ministry of Finance No. 383 / 1950 Ú. l. I (No. 380 / 1950 Ú. v. I) to the bank into effect of Act No. 117 / 1965 Coll. will not be transferred to it. The legal situation of the institutes referred to in § 2 of Act No. 31 / 1950 Coll., will be regulated by the Federal Ministry of Finance.
The following shall be deleted:
(a) Act No. 117 / 1965 Coll., on the State Bank of Czechoslovakia,
(b) Article 7 of Act No. 170 / 1968 Coll., on certain measures relating to the Federal Order of the State.
This Act shall take effect on 1 January 1971.
Freedom v. r.
Dr. Hanes v. r.
Dr Strougal v. r.
*) The Czechoslovak State Bank was established by Act No. 31 / 1950 Coll.
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Regulation Information
| Citation | Act No. 144 / 1970 Coll., on the State Bank of Czechoslovakia |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.12.1970 |
|---|---|
| Effective from | 01.01.1971 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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