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Central Bank sets out position on abandoned accounts
posted on: Nov 24 2011 8:28 by RDugey. Viewed 30 times.
The Central Bank (CB) fixed position on the use and destination of the deposits of savers in entities in financial intermediation by concept of accounts considered inactive and/or abandoned.
The debate grew out of that Act 66-97 education provides 20% of these resources to be transferred to the National Fund for promotion of education, will now be RD$ 40 million less than.
The Governor Héctor Valdez Albizu ordered that the legal consultant of the institution, Olga Morel of Kings, did an analysis to clarify regarding the fate of 20% of the RD$ 198.5 million that are deposited by this concept.
The Legal Department of the CB justifies that resources should not be transferred because, according to the law on monetary and financial 183-02, spend part of the contingency fund, which is not handled or forms part of the heritage of the CB, for eventualities the banking system.
Sustains its position that in u000aThis situation warns that legal receives the name of "conflict of laws because of the time", which leads to determine which of comparative standards should be considered valid, where both a part of his text treat on a same subject as it is in this case.
"On this point, jurisprudence, doctrine and comparative legislation majority has established itself as an unquestionable principle that a law can be repealed by another rule of equal or higher hierarchy, which has been handed down and put into force at a later date", says the consultant Jurídica del Banco Central.
And argues that: "in this regard, comparisons of the dates of both laws leaves no doubts or uncertainties insofar as that the monetary and financial law was issued subsequent to the Act 66-97, occur from the time of its enactment the implied repeal of the" u000a(letra_d) of article 203 of the latter ". (
Explanations
the BC explains that because of the tacit and implicit nature of the Act, which is constituted by the fact that although the law 183-02 did not foresee expressly by the legislator will paragraph (d)) of article 203 of the Act 66-97 it was repealed, this type of derogation operates from the moment in which occurs the contradiction of applying the provisions of both acts with regard to the matter which regulate.
He pointed out that the order legal Dominican recognizes that you between two standards contradictory for the application of a matter, prima later.
(One of the justifications based on that the tacit abrogation of paragraph (d)) of article 203 of the Act 66-97 by law 183-02, becomes the fact that even though the latter does not provide expressly that is overturning it, arranged in its article 90 as follows: "are hereby repealed all the" u000a"laws or provisions regulations insofar as they oppose provisions of this Act".
In this regard, stated general principle of law that a special law later, as the monetary law, is financial, repeals a law previous as the organic law of education 66-97, when both have differently on the same aspect.
"Is important to note that while the legislator to establish the creation of the National Fund for promotion of education identified various sources of financing of the Fund, including, among these 5 per cent of the taxes succession and sales of State property, as well as all of the resources from seizure made by Customs authorities"prosecutors or police evasion, smuggling, or other cause beyond the same legislature considered desirable from resources of abandoned accounts is destinaran in its entirety to u000a"nourish the contingency fund, which will serve to cover payments to savers or depositors of financial intermediation institutions who need it," argued.
La consulting legal stressed that those resources of abandoned accounts, transferred to the Central Bank as envisaged by the regulation of Auditors inactive and/or abandoned approved by the Monetary Board by second resolution on August 16, 2007, are your property, or they are not public, the custody of this entity resources come from deposits of the savers, and therefore constitute private resources.
He clarified that the CB cannot exhausted the 10 year period during which these balances must remain in the entity, dispose of them, exploit them, assign them, or give them a destination other than the one established by the law on monetary and financial 183-02
Justification
the legal consultant of the Central Bank, Olga Morel of Kings, explained that what u000aIt is to determine whether, from the legal point of view, the provisions of law 66-97 which provides for the creation of a National Fund for promotion of education, increased from various sources, in one of his articles were repealed by the provisions of the monetary law and finance, provided that, after 20 years without that its owners had made use of the funds deposited in financial intermediation institutions, such resources to be transferred to the contingency fund, created to assist in the payment of the depositors, in the manner provided by law, in case of bankruptcy of an entity of intermediation financial.
In that context, he explained, is necessary to establish that pursuant to article 56 paragraph c, of the law on monetary and financial 183-02, balances on current account, savings, term, special or any other, in multiple banks, savings and credit banks, credit corporations u000aand associations of savings and loans, for which their owners have not made Act of administration or disposal, in such a way as to reveal remarkable account inactivity for a period of 10 years, shall be abandoned.
Order of resources
the Ministry of education revealed yesterday that they fulfill article 201 of the Education Act 66-97, promulgated 14 years ago, and that creates the National Fund for promotion of education, it is necessary to the Central Bank to draw up a regulation that viabilice the delivery of resources collected to the institution by concept of 20% of the amount of the resources of accounts inactive and/or abandoned in financial intermediation institutions and savings and loans associations
Thus left him established the director of financial programming and economic studies of the Ministry of education (Minerd), David Lapaix Avila, who explained that the Central Bank and the unit u000aState should be coordinating bodies in place to ensure that the said regulation, it is believed because the monetary law that sends to the banks is to transfer the resources of inactive or abandoned to this institution and not to the sector accounts education.
"It is necessary to make a regulation or an amendment to the monetary law, because the law provides that inactive accounts become the Central Bank, but there is no inter-sectoral coordination to ensure that these funds reach the Ministry, and so everything stays in the air," expressed.
Said that in order to comply with article 201 of the Act 66-97, the rational is that the Central Bank issued the Act in coordination with education. "What happens in practice is that when the banks spend that money to the Central Bank these resources become part of the reserve requirement of the Bank;" like it or not, it is a liability of the Bank that serves to feed the reserve requirement of the entity in arithmetical terms. u000a"But if the Central Bank does not issue a regulation, that is going to stay in the air," said Lapaix Ávila.
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Central Bank sets out position on abandoned accounts
posted on: Nov 24 2011 8:28 by RDugey. Viewed 30 times.
The Central Bank (CB) fixed position on the use and destination of the deposits of savers in entities in financial intermediation by concept of accounts considered inactive and/or abandoned. The debate grew out of that Act 66-97 education provides 20% of these resources to be transferred to the National Fund for promotion of education, will now be RD$ 40 million less than.
The Governor Héctor Valdez Albizu ordered that the legal consultant of the institution, Olga Morel of Kings, did an analysis to clarify regarding the fate of 20% of the RD$ 198.5 million that are deposited by this concept.
The Legal Department of the CB justifies that resources should not be transferred because, according to the law on monetary and financial 183-02, spend part of the contingency fund, which is not handled or forms part of the heritage of the CB, for eventualities the banking system.
Sustains its position that in u000aThis situation warns that legal receives the name of "conflict of laws because of the time", which leads to determine which of comparative standards should be considered valid, where both a part of his text treat on a same subject as it is in this case.
"On this point, jurisprudence, doctrine and comparative legislation majority has established itself as an unquestionable principle that a law can be repealed by another rule of equal or higher hierarchy, which has been handed down and put into force at a later date", says the consultant Jurídica del Banco Central.
And argues that: "in this regard, comparisons of the dates of both laws leaves no doubts or uncertainties as to monetary and financial law was issued subsequent to the Act 66-97, occurring from el time of its enactment the implied repeal of the" u000a(letra_d) of article 203 of the latter ". (
Explanations
the BC explains that because of the tacit and implicit nature of the Act, which is constituted by the fact that although the law 183-02 did not foresee expressly by the legislator will paragraph (d)) of article 203 of the Act 66-97 it was repealed, this type of derogation operates from the moment in which occurs the contradiction of applying the provisions of both acts with regard to the matter which regulate.
He pointed out that the order legal Dominican recognizes that you between two standards contradictory for the application of a matter, prima later.
(One of the justifications based on that the tacit abrogation of paragraph (d)) of article 203 of the Act 66-97 by law 183-02, becomes the fact that even though the latter does not provide expressly that is overturning it, arranged in its article 90 as follows: "are hereby repealed all the" u000a"laws or provisions regulations insofar as they oppose provisions of this Act".
In this regard, stated general principle of law that a special law later, as the monetary law, is financial, repeals a law previous as the organic law of education 66-97, when both have differently on the same aspect.
"Is important to note that while the legislator to establish the creation of the National Fund for promotion of education identified various sources of financing of the Fund, including, among these 5 per cent of the taxes succession and sales of State property, as well as all of the resources from seizure made by Customs authorities"prosecutors or police evasion, smuggling, or other cause beyond the same legislature considered desirable from resources of abandoned accounts is destinaran in its entirety to u000a"contingency fund, which will serve to cover payments to savers or depositors of financial intermediation institutions that need nurturing Al", argued.
La consulting legal stressed that those resources of abandoned accounts, transferred to the Central Bank as envisaged by the regulation of Auditors inactive and/or abandoned approved by the Monetary Board by second resolution on August 16, 2007, are your property, or they are not public, the custody of this entity resources come from deposits of the savers, and therefore constitute private resources.
He clarified that the CB cannot exhausted the 10 year period during which these balances must remain in the entity, dispose of them, exploit them, assign them, or give them a destination other than the one established by the law on monetary and financial 183-02
Justification
the legal consultant of the Central Bank, Olga Morel of Kings, explained that what u000aIt is to determine whether, from the legal point of view, the provisions of law 66-97 which provides for the creation of a National Fund for promotion of education, increased from various sources, in one of his articles were repealed by the provisions of the monetary law and finance, provided that, after 20 years without that its owners had made use of the funds deposited in financial intermediation institutions, such resources to be transferred to the contingency fund, created to assist in the payment of the depositors, in the manner provided by law, in case of bankruptcy of an entity of intermediation financial.
In that context, he explained, is necessary to establish that pursuant to article 56 paragraph c, of the law on monetary and financial 183-02, balances on current account, savings, term, special or any other, in multiple banks, savings and credit banks, credit corporations u000aand associations of savings and loans, for which their owners have not made Act of administration or disposal, in such a way as to reveal remarkable account inactivity for a period of 10 years, shall be abandoned.
Order of resources
the Ministry of education revealed yesterday that they fulfill article 201 of the Education Act 66-97, promulgated 14 years ago, and that creates the National Fund for promotion of education, it is necessary to the Central Bank to draw up a regulation that viabilice the delivery of resources collected to the institution by concept of 20% of the amount of the resources of accounts inactive and/or abandoned in financial intermediation institutions and savings and loans associations
Thus left him established the director of financial programming and economic studies of the Ministry of education (Minerd), David Lapaix Avila, who explained that the Central Bank and the unit u000aState should be coordinating bodies in place to ensure that the said regulation, it is believed because the monetary law that sends to the banks is to transfer the resources of inactive or abandoned to this institution and not to the sector accounts education.
"It is necessary to make a regulation or an amendment to the monetary law, because the law provides that inactive accounts become the Central Bank, but there is no inter-sectoral coordination to ensure that these funds reach the Ministry, and so everything stays in the air," expressed.
Said that in order to comply with article 201 of the Act 66-97, the rational is that the Central Bank issued the Act in coordination with education. "What happens in practice is that when the banks spend that money to the Central Bank these resources become part of the reserve requirement of the Bank;" like it or not, it is a liability of the Bank that serves to feed the reserve requirement of the entity in arithmetical terms. u000a"But if the Central Bank does not issue a regulation, that is going to stay in the air," said Lapaix Ávila.
