Decree of the President of the State Bank of Czechoslovakia No. 158 / 1975 Coll.
Decree of the President of the Czechoslovak State Bank on the provision of loans
Valid
Effective from 01.01.1976
158
DECLARATION
President of the Czechoslovak State Bank
of 28 November 1975
on the granting of loans
The President of the Czechoslovak State Bank provides, pursuant to § 7 paragraph 5 (a) of Act No. 144 / 1970 Coll., on the Czechoslovak State Bank:
GENERAL PROVISIONS
The Czechoslovak State Bank (hereinafter referred to as "the Bank ') shall organise and conduct credit activities in accordance with the National Economy Development Plan and the Monetary Plan of the Czechoslovak Socialist Republic in such a way as to actively assist, through credit, the realisation of the objectives and objectives of the state economic policy and the consolidation of monetary stability. Together with the organisations and their superior bodies, it checks whether the loan contributes to safeguarding social interests.
(1) This decree regulates the provision of credit to state economic organisations, foreign trade organisations, cooperative organisations, group enterprises (group special purpose organisations) and international economic organisations based in the territory of the Czechoslovak Socialist Republic (1) (hereinafter referred to as the "organisation ').
(2) Part One, Three and Four of this Decree also applies to national committees, monetary institutions, economic facilities for social organisations and contribution organisations.
(1) The Bank is discussing the fundamental issues of lending, the form of cooperation and the extent of liability in ensuring the efficient use of the loan with economic management authorities; These authorities are obliged to cooperate in the efficient use of credit and to make the necessary assumptions in their management activities to this end.
(2) Organisations are obliged to use loans in accordance with applicable legislation and established lending conditions and to draw the bank's attention to any change in the credit facilities; the economic management authorities and organisations shall cooperate with the Bank to verify the credit guarantee and to address the identified deficiencies.
(1) The Bank provides loans in accordance with the Monetary Plan of the Czechoslovak Socialist Republic (hereinafter referred to as the "Monetary Plan"), approved by the Government of the Czechoslovak Socialist Republic.
(2) Organisations, central management bodies and other bodies designated by the Bank shall provide the Bank with the necessary documentation for the planning of the loans and discuss their proposals. (2)
(3) Following the approval of the monetary plan by the Government of the Czechoslovak Socialist Republic, the Bank, in cooperation with the economic management authorities and the monetary institutions, shall carry out its breakdown in order to secure the tasks and intentions of the State Plan for the Development of the National Economy and the State Budget of the Federation and of the Republics in the plans of the organisations.
Conditions for granting loans
(1) The Bank grants loans to organisations provided that:
(a) financing the needs necessary for the effective and economical performance of the tasks set out in the national economic development plan and its breakdown, as well as other tasks set out in the economic plans;
(b) make use of their own resources and resources from superior bodies in accordance with the applicable legislation;
(c) they have a balanced financial plan based on the real creation of own resources and resources from senior bodies, the acceptability of which has been confirmed by the bank in terms of the credit needs.
(2) The Bank also provides loans to organisations for the desired exceeding of the planned tasks as well as for addressing temporary derogations from the organisation plan.
(3) The Bank is only providing loans to organisations after verification of their return and effectiveness.
(4) The Bank provides loans for the purposes laid down in this Decree and the principles of internal and foreign banking monetary policy (hereinafter referred to as the "Principles") .3.
(5) The loans are granted by the Bank to organisations for which a need for credit has arisen, to the extent that the loans are secured by material or other creditworthy values, or by any other means provided for in this Decree.
(6) The Bank is entitled to require as one of the terms of credit that material values, subject to an increased risk of natural and other damage, be covered to the appropriate extent by insurance with the relevant public insurance undertaking.
(7) There is no legal right to grant credit; the bank is considering whether to grant the loan and under what conditions.
(1) The Bank shall provide organisations with:
(a) investment credits;
(b) operating credits;
(c) foreign exchange loans.
(2) For loans, the organisation pays interest to the bank or other monetary institutions at the level laid down in the principles.
(1) In cases established by the Bank, credit shall be granted on the basis of a credit agreement concluded between the Bank and the Organisation.
(2) Credit agreements are concluded in writing.
(3) The credit agreement is concluded if the bank and the organisation are satisfied of all the terms of the credit agreement.
(4) In the loan agreement, the bank shall in particular agree with the organisation the total amount of the loan, the conditions for its provision, the manner and timing of its drawdown and repayment or guarantee.
(5) In other cases, the bank shall grant the loan in accordance with conditions which it shall notify the organisation in writing at the request of the organisation.
Credit sanctions and interest rate bonification
(1) In order to address the deficiencies identified and to prevent them, the Bank shall be entitled to apply credit sanctions to organisations that do not fulfil the binding tasks and the binding limits of the national economic development plan, infringe the collective interests, do not comply with the terms of the credit agreement or in writing, as well as in other cases set out in the principles; cooperate with their superior bodies.
(2) In the cases provided for in paragraph 1, the Bank shall be entitled to:
(a) increase interest rates on loans;
(b) require repayment of loans before maturity;
(c) exclude from lending objects that do not provide a return on loans;
(d) limit the amount of loans granted;
(e) refuse credit;
(f) to apply other penalties in accordance with the principles.
(3) In the event that the return on the loan from the funds of the credit organisation is not guaranteed in advance, the bank shall require the organisation to guarantee the superior authority for the financial coverage of the loan.
(4) By way of exception, the bank provides loans whose return on funds from the credit organisations is not guaranteed in advance with a State guarantee granted under the special rules.
(5) In order to increase the interest of organisations on improving efficiency and to promote the additional objectives set out in the Guidelines, the Bank shall provide interest-rate bonification to interest-rate organisations under the conditions set out in the Principles.
CREDIT OF ORGANISATIONS
Investment credits
The Bank shall provide organisations with:
(a) special-purpose investment credit;
(b) bridging investment credit.
(1) The special-purpose investment loan is granted by the Bank to organisations for the acquisition of new basic funds, for the reconstruction, modernisation, superstructure and extension of existing basic funds, for the purchase of basic funds and for the items acquired after solving the tasks of the Science and Technology Development Plan and included in the basic funds, and exceptionally for other investments, project work and other investment needs.
(2) For rationalisation and similar effective investments and for corporate housing, the bank provides a special-purpose investment loan under preferential credit conditions.
The special-purpose investment loan is granted by the Bank to organisations, provided that the binding tasks and limits of the State Investment Plan and its breakdown are respected, demonstrated the effectiveness of the investment, (4) the conditions for financing are met (5) and the return on the loan is ensured.
For housing cooperatives, the bank provides a special-purpose investment loan for housing construction or other needs, if the membership shares or other resources are not sufficient under the special rules and the return on the loan is guaranteed.
The bridge investment loan is provided by the bank to the organisations to bridge the time gap between the need for and the creation of resources for investment (in the construction fund or in the small enterprise investment fund) within a calendar year or for a period exceeding the calendar year but not exceeding 12 months from the date of granting the loan.
Operating loans
(1) The Bank shall provide organisations with:
(a) credit for claims on customers in the domestic and abroad;
(b) stock credit (seasonal and temporary stocks and other stocks);
(c) credit for uninvoiced work and supplies;
(d) credit for construction site facilities;
(e) credit for seasonal and future costs;
(f) long-term loan for devices;
(g) credit assistance.
(2) Other operating loans shall be granted by the Bank to organisations in the cases set out in the Principles or with the approval of the President of the Bank.
(3) Organisations may obtain operating credit if they are not obliged to cover the relevant needs from their own resources, permanent passports, or otherwise.
(1) The loan for claims on domestic customers is granted by the bank to the organisations by the date on which the claim is to be credited to their bank account.
(2) Separately from the credit for claims on customers in the country, the bank grants a loan to the organisations for claims on customers abroad.
(1) The Bank grants a stock loan to the organisations (seasonal and temporary stocks and continuously reversing stocks) if they are needed to carry out the planned tasks and the organisation ensures their effective use. The Bank provides this loan for the stocks paid or for the payment of the stocks not yet paid.
(2) In exceptional cases, the bank shall credit the desired overplank stocks with secured disposal or unnecessary stocks for the period necessary to liquidate them in accordance with the liquidation plan agreed with the organisation.
(1) The Bank grants a loan to organisations for uninvoiced work and supplies for the planned monthly value of supply works for investment construction and long-term maintenance, or the value of geological works; separately provides a loan for work not included in the monthly instalment.
(2) The Bank provides the organisations with a loan for seasonal costs and selected costs of future periods specified in the Guidelines.
(3) The Bank provides the organisations with a loan for construction site facilities according to the development of the residual value of construction site facilities, taking into account potential repayments by investors.
A long-term currency loan is granted by the Bank to organisations if they do not receive loans pursuant to Sections 16 and 17 for the permanently reversing necessary stocks, the costs of future periods and the construction site facilities.
(1) The Bank provides the following credit facilities to the organisations to bridge their temporary financial difficulties:
(a) credit for claims on customers after maturity;
(b) payment credit;
(c) payroll credit;
(d) carry-over operating credits.
(2) The deadline for lending receivables to customers after maturity shall be set taking into account developments in the payment situation in the national economy.
(3) A payment loan is granted by the Bank to organisations for direct payment to suppliers.
(4) Salary credit is granted by the Bank to wage organisations; the credit does not provide for payroll tax and shares in economic results.
(5) The bridge operating loans shall be granted by the bank to the organisations to bridge the time gap in the planned generation of resources in the funds applicable to operational needs or, in the event of temporary non-compliance with the planned subsidies to those funds, if the lack of resources is corrected by the end of the year in which the loan was granted at the latest.
In particular, when providing operating loans, the Bank shall use the following methods:
(a) credit according to the status in the simple credit accounts;
(b) credit by turnover in special credit accounts;
(c) overdraft lending.
Foreign exchange loans
For the import of machinery and equipment for investment construction or for other needs, the bank provides foreign exchange bridging credit to the organisations, unless they have been immediately released with the applicable foreign exchange coverage and the use of the supplier foreign credit is less advantageous than the foreign exchange bridging credit.
Lending of groups, group companies and special purpose companies
(1) The Bank provides loans for centrally secured needs and activities directly to the group; The Bank grants loans to group enterprises and group special purpose vehicles for needs and activities in which they act in accordance with the group's own name.
(2) The bank will agree on the lending of companies, group companies and special purpose companies.
CREDIT OF ECONOMIC ESTABLISHMENTS BY JOINT ORGANISATIONS, CONTRIBUTIONS, NATIONAL SELECTIONS AND MONETARY CONTRACTS
The provisions of Part Two shall apply mutatis mutandis to the granting of loans to economic operators of social organisations and aid organisations.
The Bank provides a loan to the National Committees for the construction of Action Z.
(1) The Bank provides loans to monetary institutions in accordance with the approved monetary plan.
(2) The conditions for granting loans and types of loans are laid down by the Bank after consultation with the relevant monetary institution.
(3) The Bank provides loans to foreign exchange banks to cover the need for funds resulting from the granting of loans to organisations for claims abroad or for other operational needs.
PROVISIONS COMMON AND FINAL
(1) The provisions on the granting of loans by the Bank apply mutatis mutandis to the granting of loans to organisations by other monetary institutions, organisations or bodies, where they are authorised to grant loans under the applicable legislation or under the mandate of the Bank, to the extent set by the Bank.
(2) The granting of loans to producer, consumer and housing cooperatives from the cooperative central funds set up for this purpose (7) shall be subject to the conditions laid down by the cooperative associations and agreed with the Bank.
Exemptions from this decree, in particular as regards international economic organisations, are permitted by the President of the Bank.
(1) The Order of the Director-General of the State Bank of Czechoslovakia No 105 / 1966 Coll., on the lending of socialist organisations and interest rates is hereby repealed.
(2) Where exemptions have been granted under the repealed Decree and the conditions for granting them continue to be complied with under the relevant provisions of the Decree, their authorisation shall be requested by 30 June 1976 at the latest, otherwise they shall cease to be valid on that date.
This Decree shall take effect on 1 January 1976.
The President
Czechoslovak state banks:
Ing. Diving v. r.
1) Article 389a of the Economic Code.
2) National Economic Planning Act.
3) Article 4 of Act No. 144 / 1970 Coll., on the State Bank of Czechoslovakia.
4) Decree No. 3 of the Federal Ministry of Technical and Investment Development of 11.3.1975 on the Principles for the Evaluation of Investment Efficiency.
5) Sections 11 and 12 of Decree No. 152 / 1975 Coll., on the financing of the reproduction of basic funds.
6) Federal Ministry of Finance's Directive on the financing of circulation funds, reg.
7) Long-term loan funds in the production cooperative, combined housing cooperative funds and mutual financing of development in the consumer cooperative.
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Regulation Information
| Citation | Decree of the Chairman of the State Bank of Czechoslovakia No. 158 / 1975 Coll., on the provision of loans |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.12.1975 |
|---|---|
| Effective from | 01.01.1976 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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