Bank is the legal entity. Banks are based on any kind of property. Banks might establish unions, associations and other structures for coordination of their activity, protection of interests and accomplishment of joint programs. The term bank and other word combinations with this term might be used in company name or in advertising purposes only by enterprises having the right for accomplishment of banking operations according to the present Law. Differentiation of responsibility of state and banks Banks in Azerbaijan Republic are not responsible for obligations of the state, the state is not responsible for obligations of banks except cases envisaged by the present Law, other legislative acts of Azerbaijan Republic and also cases when banks and the state undertake such responsibility.
Banks act according to their Statutes.
The Statute of the bank might also include other provisions related to specifications of banking activity that do not contradict legislation. Banks must notify National bank about all amendments to the Statute. Banks do not depend on executive and administrative bodies of state power and control when making decisions concerning current banking activity. Employees in bodies of state power and control cannot participate in control bodies of banks, including holding of several offices. All operations envisaged by the present Clause might be accomplished in local currency and also in foreign currency, whenever National bank has respective license.