CICR Deliberation of 22 April 1995 on Circular Checks

Interministerial Committee for Credit and Savings

SECRETARIAT

Rome, Ministry of the Treasury Via XX Settembre, 97

DELIBERATION 22 April 1995

Article 49 of Legislative Decree 1 September 1993, No. 385 (Consolidated Text on Banking and Credit Laws). Redefinition of the regulations concerning circular checks and other checks assimilated or equated to them.

THE INTERMINISTERIAL COMMITTEE FOR CREDIT AND SAVINGS

Having regard to Article 49, paragraph 1, of Legislative Decree 1 September 1993, No. 385, which grants the Bank of Italy the power to authorize banks to issue circular checks as well as other checks assimilated or equated to them;

Having regard to paragraph 2 of the same article, which grants the Bank of Italy the authority to determine, in conformity with the deliberations of the CICR, the amount, composition, and methods for the payment of the security deposit that banks are required to establish with the Bank of Italy in respect of the circulation of the checks indicated in paragraph 1;

Recognizing the need, to align the regulations on circular checks with the new regulatory framework, to proceed with the repeal of previous CICR deliberations and urgent decrees by the Minister of the Treasury previously issued in this matter;

Also considering that among the general principles of Legislative Decree 1 September 1993, No. 385, is the principle aimed at guaranteeing respect for competitive parity among intermediaries;

On the proposal formulated by the Bank of Italy;

D E L I B E R A

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Interministerial Committee for Credit and Savings

SECRETARIAT

Rome, Ministry of the Treasury Via XX Settembre, 97

1. Amount, composition, and methods of payment of the security deposit to be established in respect of the circulation of circular checks or other instruments assimilated or equated to them

The Bank of Italy determines the security deposit at an amount not less than 20% of the value of the checks in circulation. In the presence of guarantee systems different from the security deposit that offer adequate protection to check holders, the security deposit may be reduced.

The security deposit may be constituted exclusively in securities. The Bank of Italy determines the composition of the security deposit, taking into account the types of securities accepted by the Bank of Italy as collateral for advances and the liquidity characteristics of the securities themselves. The Bank of Italy also determines the criteria for valuing the securities deposited as collateral, consistent with the rules in force regarding advances.

The security deposit is constituted at the Bank of Italy according to the methods indicated by it. Adjustments to the security deposit must be made in the manner and within the terms fixed by the Bank of Italy, and in any case based on reports with a frequency not exceeding quarterly.

2. Repealed Provisions

With this deliberation, the following provisions are intended to be repealed:

• CICR Deliberation of 23.12.1986 concerning the criteria for the issuance of authorizations for the emission of circular checks;

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Interministerial Committee for Credit and Savings

SECRETARIAT

Rome, Ministry of the Treasury Via XX Settembre, 97

• D.M. No. 218731 of 14.12.1982, issued by the Minister of the Treasury in an urgent manner, and previous measures in this matter, regarding the amount of the security deposit that authorized banks must require from mandatory banks to which the issuance of circular checks has been entrusted as correspondents;
• CICR Deliberation of 29.12.1977 on fixed-denomination circular checks of modest amount (so-called "mini-checks") and the related D.M. of 3.2.1978, issued by the Minister of the Treasury to make the aforementioned deliberation enforceable;
• CICR Deliberation of 30.3.1973 relating to guaranteed coverage bank checks, as well as previous measures taken in this matter;
• CICR Deliberation of 14.5.1971 concerning the obligation to revalue securities tied as collateral following fluctuations in their respective quotations;
• CICR Deliberation of 5 September 1969 on the issuance of circular checks by non-bank entities regarding the provision that allows Banco di Napoli and Banco di Sicilia to entrust correspondence mandates to private parties;
• CICR Deliberation of 16.11.1962 and its implementing decrees (Decree of the Minister of the Treasury of 6.12.1962 and Decree of the Minister of the Treasury of 27.9.1963) on security deposits guaranteeing the issuance of circular checks and guaranteed coverage bank checks;
• any other provision incompatible with this deliberation.

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Interministerial Committee for Credit and Savings

SECRETARIAT

Rome, Ministry of the Treasury Via XX Settembre, 97

3. Implementing Instructions

The Bank of Italy issues implementing instructions on the matter regulated by this deliberation.

This deliberation will be published in the Official Gazette of the Italian Republic.

Rome, 22 April 1995

THE PRESIDENT