Basic Regulations

ARTICLES OF ASSOCIATION

Part one

Establishment of the Bank

ARTICLE (1)

Bank of Commerce & Development has been set up by decision of the Secretary of the Popular Committee for Planning and Finance No 243/1423 dated 29.11.1423.

The provisions of Law No 1 of 1993 and the decisions by the Board of Directors of the Central Bank of Libya issued in implementation thereof and these Articles of Association shall apply, the provisions of the Libyan Commercial Code and Law No 65/70 shall also apply in so far as are not inconsistent with these articles.

ARTICLE (2)

The objective of the Bank is to exercise all banking, financial and development financing operations including complementary related or otherwise normally required for banking, financial or development activities, particularly the following:

1. Acceptance of time deposits, opening of current accounts, contracting loans and granting other credit facilities for various periods.
2. Collection and payment of orders, bills and other documents of value.
3. Issue of bills, cheques, notes and other commercial papers as well as credit cards.
4. Discount, Rediscount and otherwise handle commercial papers of any kind whatsoever.
5. Issue of bank letters of guarantee of any kind whatsoever.
6. Opening confirmation and financing of documentary credits.
7. Financing of foreign trade through credit facilities to importers or the grant of advance financing to exporters.
8. Exercise the business of investment trustees and participate in financing productive projects after ascertaining their soundness.
9. Granting of short term facilities and loans to persons, cooperatives, collective companies as well as public or private service share companies.
10. Granting of mid-term and long loans for construction, industrial, touristic or agricultural investment after approval of the appropriate authority.
11. Offering counsels in the field of investments and project financing.
12. Undertake banking and financial operations with commercial banks in the Jamahirya consistent with Law No 1 of 1993 and the Libyan Commercial Code.
13. Acts to achieve the objectives of development by endeavoring to adopt agricultural projects and services with a view to reduce dependence on imports from abroad (production to substitute imports system) or increase exports (exports oriented production system) to save foreign currency needed for development purposes.
14. Create and make available savings and investment channels appropriate to the development by employing the proceeds of such channels in mid-term and long term investments to satisfy the aspirations of depositors and within the safety and profitability considerations of both depositors and the bank.
15. Train and enhance capabilities of national staff in the banking sector in conjunction with the appreciate authorities.

ARTICLE (3)

The head office of the bank and legal domicile shall be in Benghazi; it may however establish branches, agencies or offices within the Jamahirya by decisions of its Board of Directors after approval by the Central Bank of Libya.

ARTICLE (4)

The duration of the bank shall be ninety nine years renewable automatically for a further equal period or periods; the General Assenbly may however decide to liquidate it or merge it with another bank.

PART TWO

CAPITAL OF THE BANK

ARTICLE (5)

The authorized capital of the bank has been set up at nine millions Libyan Dinars divided into nine hundred thousands shares of ten dinars each shares re indivisible. The paid-up capital shall be four millions and five hundred thousand Libyan Dinars.

ARTICLE (6)

Stocks or certificates thereof shall be extracted from a coupons register and shall be serially numbered and signed by the chairman and a member of the board deputized for the purpose and stamped wi