Decree of the State Bank of Czechoslovakia No. 201 / 1989 Coll.
Decree of the Czechoslovak State Bank on the credit relations of socialist organisations
Valid
Effective from 01.01.1990
Contents
201
DECLARATION
Czechoslovak State Banks
of 15 December 1989
on the credit relations of socialist organisations
According to § 391 (5) of the Economic Code, the State Bank of Czechoslovakia provides:
Basic provisions
(1) This decree regulates the credit relations of socialist organisations ("organisations') to banks and savings banks (" banks').
(2) The granting of loans to housing cooperatives for the construction and repair of cooperative housing houses and the interest rates on these loans are governed by a special regulation.2)
(1) An organisation may apply for a loan to a bank with which it has agreed to maintain its account (3) and to another bank. The organisation is required to inform the bank it is asking for credit about loans it draws from other banks.
(2) There is no legal claim to grant credit. The condition for granting the loan is the return within the agreed deadline and the provision of material values or other assets of the organisation. In case of doubt as to the repayment of the loan requested or already granted, the bank shall be entitled to require a guarantee for the repayment of the loan or guarantee in another form.
(1) Banks provide loans up to their own resources, deposits received and loans from the Czechoslovak State Bank. In granting loans, banks are subject to binding monetary plan outputs.
(2) The banks publish the conditions for granting loans and taking deposits. The organisation shall base its economic and social development plan and its activities on these conditions and arrangements with the Bank. Changes in the bank's terms and conditions apply only to new loans and new deposits received, unless the bank and the organisation agree otherwise.
(1) The Bank provides loans on a contractual basis. In credit agreements, the bank shall agree with the organisation, in addition to the conditions set out in the law (4), specific conditions for the granting and securing of individual loans, a procedure for non-compliance with the terms of the credit agreement and for resolving the issues raised in the performance of the credit agreement.
(2) The organisation shall submit to the bank receiving the loan the documents agreed in the credit agreement necessary to verify the material security of the loan and its return and allow the bank to verify these facts in the organisation.
Loans in Czechoslovak currency
(1) The Bank grants loans to organisations for development and operational needs and loans to cover the temporary shortage of funds, in particular to supply customers and suppliers for their claims after maturity.
(2) The loan maturities are agreed by the bank with the organisation within the maximum time limits set by the Czechoslovak State Bank.
The company pays interest on the loan to the bank. The interest rate is negotiated by the bank with the organisation, taking into account, in particular, the maturity of the loan, ensuring its return at the overall level of the organisation's management and the credit facility within the limits of a tolerance from the interest rate on the loan provided by the Czechoslovak State Bank to the banks. This derogation, which defines the upper limit of the interest rate on the loan, provides for and declares by measures in the Collection of Laws 5) Czechoslovak State Bank.
The interest rates and repayment periods agreed in the loan agreements may be amended only by agreement between the organisation and the bank.
Foreign exchange loans
(1) The Bank, which has been authorised by the Czechoslovak State Bank to trade in foreign exchange values and to conduct payment transactions with foreign exchange (hereinafter referred to as the "Foreign Exchange Money Institute"), provides foreign exchange credits in transferable rubles, in the national currencies of the States of the Council of Economic Assistance and in freely convertible currencies (hereinafter referred to as "foreign exchange credit").
(2) The Foreign Exchange Money Institute provides foreign exchange loans to organisations for development purposes and for the development of activities that ensure higher foreign exchange funds and foreign exchange loans to address the temporary shortage of foreign exchange resources due to the time discrepancy between the formation and the need for foreign exchange resources.
(1) An organisation shall pay interest on the foreign exchange credit in the currency of the credit granted, or in another currency agreed with the foreign exchange money institution. The amount of the interest rate shall be determined by the foreign exchange monetary institution according to the interest rates on international money markets depending on the type of currency and the maturity of the credit.
(2) The State Bank of Czechoslovakia directs interest rates on foreign exchange loans according to the development of the national economy.
Transitional and final provisions
Repayments of loans to permanently reversing stocks provided before 1 January 1990 and the interest rate procedure shall be agreed between the bank and the organisation for a period of one year by a credit agreement; the remuneration policy is established by the Czechoslovak State Bank.
Legal persons other than a bank who are entitled to receive deposits from organisations and to grant loans to organisations from their own or entrusted funds, (7) are subject to the provisions of this Order in these activities.
The Order of the Chairman of the State Bank of Czechoslovakia No. 103 / 1985 Coll., on the provision of loans and on interest rates, as amended by Decree No. 221 / 1988 Coll., is hereby repealed.
This Decree shall take effect on 1 January 1990.
Chairman:
Ing. Diving v. r.
1) Section 1 of Act No. 158 / 1989 Coll., on Banks and Savings Companies.
2) Decree of the Federal Ministry of Finance, the Ministry of Finance of the Czech Socialist Republic, the Ministry of Finance of the Slovak Socialist Republic and the President of the State Bank of Czechoslovak No. 136 / 1985 Coll., on financial, credit and other assistance to cooperative and individual housing and modernisation of family houses in private ownership, as amended by Decree No. 74 / 1989 Coll.
3) Paragraph 10 (3) of Act No 158 / 1989 Coll.
4) § 382a (3) of Economic Code No. 109 / 1964 Coll. (full version No. 80 / 1989 Coll.).
5) Article 11 (2) of Act No 158 / 1989 Coll.
6) Paragraph 4 (1) of Foreign Exchange Act No. 162 / 1989 Coll.
7) § 14 of Act No. 158 / 1989 Coll.
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Regulation Information
| Citation | Decree of the State Bank of Czechoslovak No. 201 / 1989 Coll., on the credit relations of socialist organizations |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.12.1989 |
|---|---|
| Effective from | 01.01.1990 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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