Act No 158 / 1989 Coll.
Law on banks and savings banks
Valid
Effective from 01.01.1990
158
THE LAW
of 13 December 1989
on banks and savings banks
The Federal Assembly of the Czechoslovak Socialist Republic decided on this law:
BASIC PROVISIONS
Banks and savings banks within the meaning of this Act are legal entities established in the Czechoslovak Socialist Republic, which are established as state monetary institutions under this Act, or as public limited companies, cooperative undertakings or joint ventures under special legislation1), subject to the conditions laid down by this Act.
(1) The legal ratios of banks established as public limited companies, cooperative undertakings and joint ventures are governed by the laws under which they were established, unless otherwise provided for in this law.
(2) The provisions concerning the Socialist Authority shall not apply to a bank established as a cooperative or joint venture. (2)
ESTABLISHMENT OF BANKS AND OVERVIEW
(1) A bank as a state monetary institution may be set up by a central government body or a Czechoslovak State bank.
(2) A bank as a public limited company, (3) as a cooperative enterprise (4) or as a joint venture (5) may establish Czechoslovak legal entities under special regulations.
(3) Foreign persons may participate in the establishment of a bank as a public limited company under the conditions laid down in a special regulation. 6)
The Bank may establish the Ministry of Finance, Prices and Wages of the Republic in whose territory it is to have its seat.
(1) In order to establish a bank or savings bank, to divide it, to merge it or to merge it with another bank or savings bank, as well as to change the object of their business and to change the amount and form of the capital formation, the State Bank of Czechoslovakia is authorised in an agreement with the Federal Ministry of Finance and in the case of banks, also after consulting the Ministry of Finance, Prices and Wages of the Republic in whose territory the Bank is to have its registered office or has its registered office, unless that Ministry is the founder.
(2) The application for authorisation to establish a bank or savings bank shall state the name and registered office of the bank or savings bank, the designation of the founder, the extent and manner of the creation of the capital and the defined object of the bank or savings bank's business.
(3) If the founder of the bank is the Federal Ministry of Finance, in cases covered by paragraph 1, the State Bank of Czechoslovakia, if the founder of the State Bank of Czechoslovakia, grants approval to the establishment of the bank, the Federal Ministry of Finance.
(4) An application for authorisation to establish a bank which is not to be a state monetary institution and to divide, merge or merge a bank which is not a state monetary institution shall be decided in an administrative procedure. 7)
(5) The decision to grant the authorisation referred to in paragraph 1 shall take into account the need for an efficient organisation of banks and savings banks, as well as whether the bank or the savings bank will have sufficient capital and technical conditions for the proper performance of its business after the establishment, division, merger or merger or change of the capital.
Founder of the State Money Institute
(a) securing the capital;
(b) issue a instrument of incorporation;
(c) appoint and withdraw the statutory authority;
(d) perform the function of economic management body in respect of the State Money Institute under the conditions and to the extent laid down by generally binding legislation and in this capacity controls the economic and social activity of the State Money Institute;
(e) confirms the annual accounts of the State Money Institute;
(f) decide on the division, merger, merger and cancellation of the State Money Institute.
The founding act of the State Money Institute shall include in particular:
(a) its name, registered office and identification number; 8)
(b) the designation "State Money Institute";
(c) the designation of the founder;
(d) the amount of the capital;
(e) the definition of the subject matter of the activity.
(1) The State Money Institute is established on the date of registration. The application for registration shall be submitted by the founder.
(2) The internal organisational arrangements of the State Money Institute shall be governed by the organisational arrangements issued by its statutory body.
ACTIVITIES OF BANKS AND OVERVIEW
(1) Banks and savings banks, in line with the objectives of the State Economic Policy, support the development of socialist entrepreneurship and the safekeeping of the population and follow their determined binding outcomes of the five-year State economic and social development plan and the monetary plan.
(2) Banks and savings banks
(a) receive deposits from legal and natural persons;
(b) provide loans to legal persons and loans to natural persons from their own resources;
(c) carry out domestic payment and settlement arrangements;
(d) conduct an exchange activity;
(e) on the basis of the permission of the State Bank of Czechoslovakia, they shall conduct trade in foreign exchange values in excess of the exchange rate activity and make payments with foreign exchange;
(f) conduct securities operations;
(g) provide depository services.
(3) Banks and savings banks may also carry out other activities in the field of banking business and money services, as specified in the instrument of incorporation or special regulations.
(1) Legal and natural persons may choose a bank and savings bank for the required type of banking business and cash services.
(2) Banks and savings banks may choose a legal or natural person for whom they will conduct the required banking business or provide monetary services.
(3) However, the Bank is obliged to open and maintain accounting 9) a legal person who so requests and no longer has this account opened at another bank or savings bank. The savings bank shall receive deposits from the natural person who requests them. 10)
(1) Banks and savings banks receive deposits from legal and natural persons and provide loans to legal persons and loans to natural persons; Such activities shall be carried out on a contractual basis.
(2) Interest rates on deposits received by legal entities and on loans granted pursuant to paragraph 1 shall be negotiated by banks and savings banks within a specified range of interest rates or permissible derogations from the interest rate on loans granted by the State Bank to the banks of Czechoslovakia. This interest rate range or tolerance from that interest rate is declared by the Czechoslovak Bank in the Collection of Laws. The Czechoslovak State Bank can also declare the rate when buying transferable securities before their maturity by banks and savings banks.
(3) Interest rates on deposits received by natural persons and on loans granted by banks and savings banks to natural persons pursuant to paragraph 1 shall be declared by the State Bank of Czechoslovakia in agreement with the Federal Ministry of Finance and the Ministry of Finance, the prices and wages of the Czech Socialist Republic and the Slovak Socialist Republic in the Collection of Laws.
(4) The interest rates published in accordance with paragraphs 2 and 3 do not replace the interest rates laid down in specific provisions. 11)
(5) Where a bank or a savings bank is obliged to grant a loan or loan under the conditions laid down by law or by a binding outcome of the five-year State economic and social development plan and is thereby subject to property damage, the bank or savings bank shall be entitled to claim payment of such damage from the State budget for which it is liable for payment or tax.
The State shall be liable for deposits and other assets of natural persons deposited with state money institutions as well as for interest on deposits of natural persons with state money institutions.
Banks and savings banks are obliged to use their own and entrusted funds in such a way as to guarantee the fulfilment of their obligations.
(1) In addition to banks or savings banks, any of the activities referred to in Article 9 (2) may be carried out by another legal person in addition to his main activity on the basis of an authorisation granted to him at his request.
(2) Authorisation to carry out the activities referred to in § 9 (2) (a), (b), (c), (d) and (e) is granted by the State Bank of Czechoslovakia and, in the cases referred to in points (f) and (g), by the State Bank of Czechoslovakia in agreement with the Federal Ministry of Finance in administrative management.8) Paragraph 5 (5) shall apply mutatis mutandis when deciding to grant an authorisation under paragraph 1.
(3) A legal person who has been granted an authorisation under paragraph 1 has rights and obligations with regard to the pursuit of the activity covered by that authorisation by banks and savings banks under this Act, with the exception of § 26.
(4) The authorisation shall not be required to carry out the activities referred to in:
(a) in Article 9 (2) (a) and (b), if it is about the use of common cooperative special-purpose funds created under a specific regulation; 12)
(b) in Article 9 (2) (c) and (e), in the case of payments with foreign persons; where these activities are carried out by post. 13)
(5) The legal persons entitled to carry out the activities referred to in paragraph 4 without authorisation have the rights and obligations of the banks and savings banks under this Act with the exception of § 26.
BANKING AND OVERVIEW
(1) Banks and savings banks carry out their activities on the basis of self-financing, full maturity and their economic and social development plans. They use their own and entrusted resources for their economic development and, depending on the results of the management, also take care of the development of their working group.
(2) State monetary institutions are the subject of relations with the state budget and national committees.
(1) The following funds are created by banks and savings banks:
(a) the statutory fund;
(b) the reserve fund;
(c) a risk fund;
(d) the development fund;
(e) a fund of cultural and social needs and a fund of remuneration under generally binding legislation.
(2) Banks and savings banks may create additional funds at their discretion from their usable profits.
(3) Funds created by banks and savings banks cannot be withdrawn from them; banks and savings banks shall decide on their application in accordance with generally binding legislation.
STATE SUPERVISORY
(1) Banks and savings banks are subject to state supervision.
(2) State supervision of the activities of banks is carried out by the Federal Ministry of Finance.
(3) State supervision of the activities of savings banks is carried out by the Ministry of Finance, Prices and Wages of the Republic in whose territory the savings bank has its registered office.
(1) The exercise of State supervision includes:
(a) control of the management of banks and savings banks in terms of ensuring compliance with their obligations and compliance with generally binding legislation governing their management;
(b) ensuring that banks and savings banks carry out their activities in accordance with an authorisation granted under Article 5 (1);
(c) the right to request the submission of accounts and other evidence of activity;
(d) the right to participate in the proceedings of the governing bodies of banks and savings banks.
(2) Individual deposits and loans granted to individual natural persons are not subject to State supervision.
(1) Where significant deficiencies have been identified in the exercise of State supervision (Paragraph 18), the State Supervision Authority shall set a deadline for their removal and inform the Bank, as a public money institution, as a cooperative undertaking or as a joint venture of its founder and, where appropriate, of the legal entities involved in their establishment, of the Bank established as a public limited company, of its supervisory authority.
(2) If the deficiencies identified have not been remedied within the prescribed time limit, the Authority shall suspend or withdraw, in a limited or full manner, the authorisation of an authorisation granted under Paragraph 5 (1), to a bank or savings bank. In this case, the bank or savings bank may not enter into legal relations in the area covered by the decision.
(3) In the event of suspension of activity, the Bank or the Savings Bank shall again acquire such authorisation by the expiry of the period for which the suspension decision has been restricted or the date on which the decision has been revoked.
_
(1) The State Money Institute shall cease to be divided, merged, merged or dissolved.
(2) The division, merger, merger or cancellation of a State Money Institute must not be detrimental to its creditors and registration in the company register is required for its effectiveness.
(3) The demise of a bank or savings bank established as a public limited company, cooperative undertaking or joint venture is governed by specific rules.
(1) If a State Money Institute is destroyed by a merger or a merger, its assets and liabilities are transferred to a State Money Institute which takes over or is newly established.
(2) When the State Money Institute is divided, the Founder shall decide on the transfer of assets and liabilities to the State Money Institute resulting from the division. In the absence of a decision on the transfer of an obligation of a divided public monetary institution, the creditor may exercise his right against any state monetary institution created by the division.
(1) The liquidation of the State Money Institute is subject to the provisions of Sections 27a to 27e of the Economic Code mutatis mutandis.
(2) The liquidation of the State Money Institute in its overindebtedness is governed by specific provisions. 14)
COMMON PROVISIONS
(1) All bank transactions and monetary services of banks and savings banks, including account stocks and securities deposits, are covered by the banking secrecy provided for in paragraphs 2, 24 and 25.
(2) Reports on the status of legal persons' accounts and the loans granted to them may be submitted to those persons, their founders and with the express consent of the legal person and other persons. Without such consent, the report may only be submitted when it has demonstrated a legitimate interest and only with the approval of the statutory body of the bank or the savings bank, or where a generally binding law so provides.
(1) In the case of deposits of natural persons, the bank and the savings bank are required to maintain the anonymity of deposits and depositors in relation to third parties and in the case of deposits denominated in bearer accounts, the anonymity of the depositor is maintained in relation to the bank and the savings bank.
(2) The report on the contribution of a natural person may only be submitted at the request of a court for the purpose of civil proceedings (15) and at the request of a court or other law enforcement authority (16) concerning the deposit. The query shall contain information that clearly identifies the deposit. The authorisation of state notaries under the special rule in the succession proceedings shall remain without prejudice. 17)
(1) Workers and officials of banks and savings banks and savings banks, as well as civil servants, are required to remain silent in their business matters affecting the commercial interests of banks and savings banks and their clients.
(2) For the reasons set out in Articles 23 (2) and 24 (2), the statutory body of the bank or savings bank may be exempted from this obligation.
(3) The obligation to remain silent continues after the termination of the employment relationship or the performance of duties.
Banks and savings banks shall publish their financial statements and reports on them annually.
PROVISIONS TRANSITIONAL AND FINAL
(1) Zivnostenská banka, n.p., Investment Bank, State Money Institute, Česká státní spořitelna and Slovenská státelna, which have been established by the relevant legislation repealed pursuant to § 31, are considered as state money institutions established under this Act since the entry into force of this Act and continue to operate under its provisions. Their demise is also governed by this law.
(2) The rights and obligations of the founder have in the relationship
(a) to the Investment Bank, the Federal Ministry of Finance shall proceed in a manner agreed with the Ministry of Finance, Prices and Wages of the Czech Socialist Republic and the Slovak Socialist Republic,
b) to Živnostenská banka, n. p. State bank Czechoslovak,
c) to the Czech State Savings Office Ministry of Finance, Prices and Wages of the Czech Socialist Republic,
(d) to the Slovak State Savings Office, Ministry of Finance, Prices and Wages of the Slovak Socialist Republic.
(1) Until interest rates are published in accordance with Article 11 (2) and (3), the interest rates laid down in the current rules apply. 18)
(2) Paragraph 11 (5) applies to cases where the legislation or the compulsory output of the five-year State economic and social development plan setting out the terms of the loan or loan is issued after the entry into force of this law.
(1) The Government of the Czechoslovak Socialist Republic will adjust the financial management of state money institutions by regulation.
(2) The Federal Ministry of Finance will adapt the general binding legislation on the financing of social consumption for state money institutions.
Slovenská Tatra banka, n.p. is considered to be a state money institution established under this Act since the entry into force of this Act. The Federal Treasury will determine who will have the rights and duties of its founder.
They shall be deleted:
1. Act No. 181 / 1948 Coll., on the organisation of monetary affairs,
2. Act No. 84 / 1952 Coll., on the organisation of monetary affairs,
3. Act No. 72 / 1967 Coll., on the State Savings Bank, as amended by Act No. 163 / 1968 Coll.,
4. Act No. 183 / 1948 Coll., on the Investment Bank, as amended by Acts No. 61 / 1950 Coll. and No. 84 / 1952 Coll.,
5th Order of the Minister of Finance No 223 / 1948 Coll., on the opening of the business of Investment Bank,
6th Order of the Ministry of Finance No. 36 / 1956 Coll., on the modification of certain ratios of the Živnostenská banka,
7th Act No. 38 / 1948 Coll., on the National Bank of Czechoslovakia, as amended,
8. Act No. 182 / 1948 Coll., extending and amending the legal nature of the Postal Savings Bank, as amended,
9. Act No. 43 / 1948 Coll., on Agricultural Credit, as amended,
10. order of the Minister of Finance No 516 / 1949 Ú. l., on agricultural loans (verb. No 527 / 1949 Ú. v.).
This Act shall take effect on 1 January 1990.
CHF
whether or not in place of the President of the Republic pursuant to Article 64 of the Constitutional Law on the Czechoslovak Federation
Kukorov v. r.
1) Act No. 243 / 1949 Coll., on Equity Companies. Act No. 94 / 1988 Coll., on housing, consumption and production cooperatives. Act No. 90 / 1988 Coll., on Agricultural Cooperatives.
2) Article 65 (3) of Act No. 94 / 1988 Coll.
3) § 3 of Act No. 243 / 1949 Coll.
4) § 64 of Act No. 94 / 1988 Coll.
5) § 68 of Act No. 90 / 1988 Coll.
6) Act No. 173 / 1988 Coll., on an enterprise with foreign equity participation.
7) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulations).
8) Decree of the Federal Statistical Office No. 117 / 1972 Coll., on the single code list of organizations in CSSR.
9) § 366 of Economic Code No. 109 / 1964 Coll., as amended (full version No. 80 / 1989 Coll.).
10) Paragraph 325 (1) of Civil Code No. 40 / 1964 Coll., as amended (complete version No. 70 / 1983 Coll.).
11) In particular, the legal measure of the Bureau of the Federal Assembly No 14 / 1973 Coll., on the granting of loans with a State contribution to young spouses, as amended by the Decree of the Government of the Government of the Czech Republic No. 44 / 1987 Coll. and the Decree of the Federal Ministry of Finance, the Ministry of Finance of the Czech Republic, the Ministry of Finance of the SSR and the President of the State Bank No. 136 / 1985 Coll., on the financial, credit and other assistance of cooperative and individual housing and modernisation of private-owned family houses, as amended by Decree No. 74 / 1989 Coll.
12) Sections 52 (e) and 59 (1) (e) of Act No. 94 / 1988 Coll.
13) Act No 222 / 1946 Coll., on Post Office (Postal Act), as amended.
14) Sections 352 to 354 of the Civil Code No. 99 / 1963 Coll., as amended (complete version No. 78 / 1983 Coll.).
15) Part Three and Part Four of the Civil Code.
16) Act No. 141 / 1961 Coll., on Criminal Procedure (Criminal Code), as amended.
17) Act No. 95 / 1963 Coll., on State notaries and proceedings before state notaries (notarial order), as amended (complete version No. 72 / 1983 Coll.).
18) Decree of the Ministry of Finance No. 47 / 1964 Coll., on Money Services to Citizens, as amended.
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Regulation Information
| Citation | Act No 158 / 1989 Coll., on banks and savings banks |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 22.12.1989 |
|---|---|
| Effective from | 01.01.1990 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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