Decision on Guaranteed Convertibility of the Convertible Mark

9. Decision on the Guaranteed Convertibility of the Convertible Mark, UV No.: 13/98 dated 28.05.1998.

PUBLISHED:
"Official Gazette of BiH", 27/98
"Official Gazette of the Federation of BiH", 3/99 "Official Gazette of the Republika Srpska", 1/99

Based on Article 7, point b., Article 32, and Article 33 of the Law on the Central Bank of Bosnia and Herzegovina ("Official Gazette of BiH", 1/97), the Governing Board of the Central Bank of Bosnia and Herzegovina, at its 9th session on 28 May 1998, adopts

D E C I S I O N on the guaranteed convertibility of the convertible mark

I General Provisions

1. The Central Bank of Bosnia and Herzegovina (hereinafter: the Central Bank) fulfills its obligations based on Article 33, paragraph 1 of the Law on the Central Bank of Bosnia and Herzegovina (hereinafter: the Law on the Central Bank) by buying and selling convertible marks for German marks (hereinafter: KM and DEM) with commercial banks.

2. Commercial banks and financial institutions in Bosnia and Herzegovina fulfill their obligations based on Article 33, paragraph 2 of the Law on the Central Bank by buying and selling KM for DEM from the public.

3. The purchase and sale prescribed by Article 33 of the Law on the Central Bank is carried out upon request, without restrictions and without commissions, fees, and other charges, at an exchange rate of one KM for one DEM.

II Implementation

4. The non-cash purchase and sale of KM for DEM prescribed by Article 33 of the Law on the Central Bank represents an immediate transaction of exchange (conversion) of foreign currency and is settled two working days after the submitted request.

5. Non-cash and cash purchase and sale of KM for DEM, which is carried out based on an agreement between participants in the transaction within a period shorter than two working days after the submitted request, is not carried out based on Article 33 of the Law on the Central Bank, and the commercial bank may execute them with commissions, fees, and other charges, provided that the total amount of these charges cannot exceed the amount of 1%.

6. If the non-cash and cash transaction exceeds the amount that can be agreed upon by the bank and its clients, a notice of two working days in advance is required.

III Record Keeping

7. Commercial banks and financial institutions are obliged to keep accurate records of every purchase and sale of KM for DEM.

IV Definitions

8. The terms used in this decision have the following meanings:

a. "commercial bank" refers to any legal entity engaged in banking business based on a banking license issued by the competent body responsible for licensing and supervising banks, and includes the network of branches;

b. "financial institution" refers to any legal entity that is not a bank, but which has permission to take deposits from the public and is engaged in financial transactions.

V General Provisions

9. This decision enters into force on the day of publication in the "Official Gazette of BiH", "Official Gazette of the Federation of BiH", and "Official Gazette of the Republika Srpska".

UV No.: 13/98 Chairman 28 May 1998. year of the Governing Board of the Central Bank Sarajevo of Bosnia and Herzegovina G O V E R N O R Peter Nicholl