Source: https://www.nbkr.kg/index1.jsp?item=41&lang=ENG
Timestamp: 2019-09-16 13:13:32
Document Index: 233486487

Matched Legal Cases: ['art 1', 'art 2', '§ 2', '§ 2', '§ 1', '§ 2', '§ 3', '§ 4', '§ 5', '§ 6', '§ 7', '§ 8', '§ 9', '§ 10', 'art 1', 'arty\n1', '§ 1', 'art 1', 'art 1', 'art 1', 'art.442', 'art 1', 'art.240', 'art.435', 'art 3', 'art 2', 'art 2', 'art 4', 'art 1', 'art 2', 'art 6', 'art 4', 'art 2', 'art 5', 'art 2', 'arts 4', 'art 9', 'art 6', 'art 1', 'art 3', 'art 4', 'art 2', 'art 6', 'art 3', 'art 1', 'art. 195', 'art 2', 'art 1', 'art 3', 'art 1', 'art 2', 'art. 412', 'art.448', 'art 1', 'art 2', 'art 1', 'art 5', 'art 3', 'art.252', 'art. 470', 'art. 471', 'art.410', 'art.239', 'art. 321', 'art. 322', 'art. 1012', 'art.852', 'art. 1105', 'art.143', 'art. 466', 'art.512', 'art.712', 'art. 462', 'art. 463', 'art. 465', 'art.618', 'art.916', 'arts 15', 'art.923', 'art. 1016', 'art.225', 'art.226', 'art. 477', 'art. 844', 'art.489', 'art.757', 'art.247', 'art.380', 'art.330', 'art.935', 'art.119', 'art. 1002', 'art.540']

No. 207, Bishkek city, dated December 16, 2016
On bringing into force the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”
(As amended by the Laws of the Kyrgyz Republic of December 10, 2018 # 100)
The Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” shall enter into force from the effective date thereof.
1. The provisions of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” shall be applied to banking legal relationships arising upon entry into force thereof, except as otherwise provided in this Law.
2. In respect of banking legal relationships arising prior to bringing into force the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”, the latter shall be applied to those rights and obligations that arise upon bringing into force thereof.
1. The procedures of establishing the banks, harmonizing the officials, obtaining the licenses of the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank) and appeals of its decisions, initiated prior to bringing into force of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” shall be completed in accordance with the procedures prescribed by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
2. From the date of bringing into force the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” the regime of conservation in the banks shall be modified into the regime of the Interim administration and a conservator of the bank shall acquire the status of the Interim Administrator.
3. The procedure of the banks’ compulsory liquidation (bankruptcy) banks, initiated by the court prior to bringing into force the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”, shall be completed through legal proceedings. The court and the liquidator shall be governed by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
A special administration procedure is transformed into a liquidation procedure, and a special administrator acquires the status of a liquidator, meanwhile judicial acts and decisions of the National Bank on such transformation/status change are not required.
4. Paragraph 5 of Article 84 of the Law “On the National Bank, banks and banking activity” for the operating banks shall come into effect on July 1, 2018.
The following dates for formation of the minimum charter capital for the operating banks (including the branch offices of the non-resident banks) shall be set:
till July 1, 2016 – KGS 400 million;
till July 1, 2017 – KGS 500 million;
till July 1, 2018 – KGS 600 million.
Dividends to the shareholders (participants) of the commercial banks shall not be paid until the minimum charter capital in the amount of KGS 600 million has been formed in accordance with the second-fifth paragraphs of this part.
The minimum amount of the charter capital for newly created banks shall be set in the amount of at least KGS 600 million.
The charter capital of the National Bank shall be increased up to KGS 2 (two) billion by means of the obligatory reserves of the National Bank.
1. The Civil Code of the Kyrgyz Republic (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1996, No. 6, p. 80; 1998, No. 6, p. 226) shall be amended as follows:
1) in paragraph 3, Article 35, the word “by law” shall be replaced by the words “banking legislation of the Kyrgyz Republic”;
2) in Article 38, the words “bearer bank savings book” shall be excluded;
3) in Article 49:
а) in part 1 the words “and percent” shall be replaced by the words “, of percent or other fee”;
b) in part 2 the words “may be bearer shares or” shall be replaced by the word “are”;
4) in the subparagraph of the fourth paragraph, Article 99, second sentence shall be deleted;
5) in Article 726:
а) the name of the article after the word “Interest” shall be added by the words “or other fee”;
the first sentence, after the words “from the borrower interest” shall be added by the words “or other payment’;
the second sentence shall be deleted;
the words “in the amount not exceeding fifty times the size of the calculated rate” shall be deleted;
paragraph, after the words “interest-free” shall be added by the words “without payment for the loan amount,”;
d) paragraph 3 after the words “interest payable” shall be added by the words “or other payment on the loan shall be made”;
e) paragraph 4 shall be declared to be no longer in force;
6) the second and third sub-paragraphs of paragraph 2, Article 727 after the word “provided” shall be added by the words “for a fee, including”;
7) § 2 of Chapter 34 shall be amended as follows:
"§ 2.Credit
Article 734. Loan agreement
Under the loan agreement the borrower (a bank or non-bank financial institution (hereinafter referred to as the Bank) shall provide funds (credit) to the borrower in the amount and under the conditions stipulated by the loan agreement and the borrower undertakes to return received funds and pay interest thereon.
Article 735. Form of the loan agreement
The loan agreement shall be concluded in writing. Failure to comply with the written form shall entail the invalidity of the loan agreement. This loan agreement shall be deemed null and void.
Article 736. Determining the day for providing a credit
The day of providing a credit shall be deemed the day on which the borrowed funds are credited to the borrower’s account, to the other account on the instruction of the borrower or are issued to the borrower in cash.
Article 736-1. Refusal to provide or receive a credit
1. The creditor shall be entitled to refuse from providing the borrower with a credit stipulated by the loan agreement in full or in part in the presence of circumstances clearly indicating that the funds granted to the borrower will not be repaid in time.
2. If the borrower violates the obligation on the intended use of a credit stipulated by the loan agreement, the creditor shall be entitled to refuse from providing further lending to the borrower under the loan agreement, as well as to take measures envisaged in paragraph 3, Article 736-2 of this Code.
3. The borrower shall be entitled on a pro bono basis to refuse from receiving a credit during the period upon conclusion of the loan agreement and until the client receives the funds or makes payment in return for leasing property.
Article 736-2. Intended use of a credit
1. The borrower shall use the funds received under the loan agreement, at his/her/its discretion, except as otherwise provided herein.
2. If the loan agreement is concluded provided that the borrower uses borrowed funds for certain purposes (special-purpose credit), the borrower shall provide the creditor with the opportunity to implement control over target use of a credit.
3. If the borrower fails to comply with the loan agreement on the target use of a credit, moreover, in case of violation of the obligations under paragraph 2 of this article, the creditor shall be entitled to require from the borrower early repayment of the outstanding amount of debt on a credit, except as otherwise provided herein.
Article 736-3. Interest and fee for credit use
1. Prior to entering into the loan agreement, the creditor shall be obliged to provide the borrower with the opportunity to familiarize with the information about the interest rate and the fee for credit use (commission fee) if it shall be paid under the loan agreement. Information on the interest rates and commission fees shall be open, available and be provided by the bank to the potential borrowers in accordance with the legislation of the Kyrgyz Republic.
2. In entering the loan agreement with each individual borrower, the creditor shall determine the size, frequency of accrual and payment of interest and commission fee, if the obligation of payment thereof is stipulated in the loan agreement.
The procedure of interest payment for credit use and principal amount of a credit shall be stipulated in the loan agreement upon agreement by the parties.
Interest for credit use shall not be paid on the day, when a credit is provided.
The liability of the borrower for late payment of interest and fees for credit use may be stipulated in the loan agreement, if the obligation of payment thereof is provided for in the loan agreement.
Article 736-4. Obligation of the borrower to repay a credit
1. The borrower shall repay the credit amount to the creditor within the time limits and in the manner provided for by the loan agreement.
2. The borrower shall be entitled to make the early repayment of the credit at any time, regardless of the type of credit, credit use period and amount thereof, subject to thirty-calendar-day prior notification.
3. The credit amount shall be deemed repaid at the time of its transfer to the creditor or the relevant funds crediting to the bank account of the creditor, except as otherwise provided herein.
Article 736-5. Enforcement of the borrower’s obligations
1. Performance of the borrower’s obligations under the loan agreement can be ensured by collateral, surety, guarantee and other means provided for in the legislation of the Kyrgyz Republic.
The National Bank of the Kyrgyz Republic establishes minimum requirements to security on the banks credits.
2. If the borrower fails to implement the obligations on providing credit repayment stipulated by the loan agreement, and in case of security loss or deterioration of its conditions due to the circumstances in respect of which the creditor bears no responsibility, the creditor shall be entitled to require from the borrower early repayment of the outstanding amount of debt on a credit, except as otherwise provided in the loan agreement”;
8) The Code shall be supplemented by Chapter 34-1 as follows:
“Chapter 34-1. Financing in accordance with the Islamic Principles of Finance
§ 1. Mudaraba agreement
Article 738-1. General conditions
1. Under the Mudaraba agreement, one party (the investor) provides the other party (the Mudarib - to the individual or legal entity - the funds recipient) with the funds in order to implement subsequent investment for the purposes stipulated by the parties or at the discretion of the Mudarib in order to generate profit, which shall be proportionately distributed between the parties under the conditions of the Mudaraba agreement.
2. The Mudaraba agreement can be used both for the purpose of attracting monetary funds (to attract deposits), and for the purpose of placing funds raised under the Mudaraba agreement.
3. The Mudaraba agreement must be concluded in writing.
4. A bank having an appropriate license/certificate may be a party to the Mudaraba agreement. At the same time, mandatory conditions and requirements may be stipulated by the regulatory legal acts of the Kyrgyz Republic.
5. Mandatory conditions and requirements for the Mudaraba agreement may be stipulated by the regulatory legal acts of the Kyrgyz Republic.
Article 738-2. Forms of the Mudaraba agreement
1. The Mudaraba agreement can be concluded in the following forms:
1) an agreement of restricted (special) Mudaraba, under the conditions thereof the investor shall establish types of assets or objects for investment by the Mudarib. At the same time, a separate agreement shall be concluded between the Mudarib and the investor in respect of each asset/investment object;
2) an agreement of unrestricted (common) Mudaraba, under the conditions thereof the Mudarib shall be entitled to use the funds provided by the investor at his/her/its own discretion;
3) an agreement of an open Mudaraba, under the conditions thereof the investor shall be entitled to receive ahead of schedule (at the first request) the funds provided to the Mudarib. In this case, the bank (if it acts as a Mudarib) shall pay the profit to the investor for the last full period (month, year);
2. The regulatory legal acts of the Kyrgyz Republic may provide for other types of the Mudaraba agreement.
Article 738-3. Restrictions in the use of monetary funds
The funds under the Mudaraba agreement can be invested only in those activities that comply with the Sharia standards.
Under the agreement of restricted (special) Mudaraba, the investor must provide for in the agreement a ban on misuse of funds and on placement of funds by the third parties in any form, directly or indirectly.
Article 738-4. Rights and obligations of the investor under the Mudaraba agreement
1. Under the Mudaraba agreement, the investor shall be entitled to act in accordance with the terms thereof, to provide the Mudarib with monetary funds within the timeframe established in the Mudaraba agreement, to monitor the use of the monetary funds provided by him and other terms of the Mudaraba agreement, and to receive profit within the terms established in the Mudaraba agreement.
2. The investor shall be entitled to demand from the Mudarib to return the amount provided under the Mudaraba agreement ahead of schedule, including at the expense of security provided by the Mudarib, in case of non-fulfillment or improper fulfillment of the terms and conditions of the Mudaraba agreement. Other rights of the investor may be provided for in the Mudaraba agreement.
The investor shall not be entitled to interfere with the current activities of the Mudarib related to implementation of the Mudaraba agreement.
Article 738-5. Rights and obligations of the Mudarib under the Mudaraba agreement
1. Under the Mudaraba agreement, the Mudarib shall provide the investor with any reports and other information necessary for the investor and shall be obliged to exercise full control over the quality of the implemented business project in order to comply with the necessary requirements of the Shariah standards and the terms and conditions of the Mudaraba agreement, to keep records of the use of monetary funds received from the investor and the money (income) obtained in the process of executing the Mudaraba agreement.
2. The Mudarib shall be entitled to use the funds received from the investor only for the purposes stipulated in the Mudaraba agreement.
3. The Mudarib shall be entitled to manage the capital received from the investor in order to obtain profit and receive remuneration in accordance with the Mudaraba agreement.
Article 738-6. Method of securing obligations under the Mudaraba agreement
The investor shall be entitled to demand from the Mudarib to provide security in the form of a collateral, surety, guarantee and other types of security in respect of received monetary funds, and also to cover losses at the expense of a collateral due to inappropriate actions of the Mudarib, negligent attitude or violation of the terms and conditions of the Mudaraba agreement on the part of the Mudarib, which resulted in losses.
Article 738-7. Distribution of profit and loss
1. The profit received under the Mudaraba agreement shall be distributed according to the procedure stipulated in the Mudaraba agreement in percentage of the profit received.
2. If the loss occurred in the course of implementing the Mudaraba agreement, the investor bears loss in the amount of funds provided to him by the Mudarib, and in this case the Mudarib receives no remuneration for his work. This rule for distribution of losses shall be applied if the loss did not occur due to fault of the Mudarib.
3. If the loss occurred as a result of the guilty or wrongful actions/omissions of the Mudarib, the loss shall be reimbursed to the investor at the expense of the Mudarib. At the same time, the investor shall be entitled to receive from the Mudarib the funds provided under the Mudaraba agreement at the expense of security, and if the funds are insufficient - at the expense of other property of the Mudarib.
Article 738-8. Ban on termination of the Mudaraba agreement
The Mudaraba agreement shall not be terminated unilaterally if the Mudarib has begun to implement the Mudaraba agreement and has already been using the funds in the course of entrepreneurial activity, and if the term of the Mudaraba contract has not expired.
§ 2. Murabaha agreement
Article 738-9. General conditions of the Murabaha agreement
1. Under the Murabaha agreement, the bank that has a corresponding license, shall undertake to sell by installments to the client the goods purchased by him at the request of the client.
2. In selling the subject of the Murabaha agreement to a client under a Murabaha agreement, the bank shall have the ownership right to the subject of the Murabaha agreement.
3. The Murabaha agreement shall be concluded in writing.
4. Mandatory conditions and requirements for the Murabaha agreement may be stipulated by the regulatory legal acts of the Kyrgyz Republic.
Article 738-10. Transfer of ownership
1. The ownership right to the subject of the Murabaha agreement shall pass to the client after full payment of the subject price under the Murabaha agreement, except as otherwise provided herein.
2. The bank shall be entitled to enter into the purchase and sale agreement both independently and through an agent. The bank shall be entitled to appoint a client, who acts on behalf of the bank and at the expense thereof, as an agent. When appointing an agent, the bank shall comply with the restrictions established by the legislation of the Kyrgyz Republic.
Article 738-11. Transactions made under the Murabaha agreement
1. Under the Murabaha agreement, all transactions for purchase of the subject of the Murabaha agreement shall be made on behalf of the bank.
2. The Bank shall not be entitled to make transactions under the Murabaha agreement:
1) on deferred liabilities related to precious metals (gold, silver, etc.) and foreign currency;
2) with working capital, where the accounts receivable are the assets backing;
3) when refinancing a transaction.
3. The bank shall be entitled to sell the subject of the Murabaha agreement if the client delays the payments for the period exceeding the term specified in the Murabaha agreement.
In case of selling the subject of the Murabaha agreement, the bank reimburses to the client the payments that the bank received from the client.
4. If the subject of the Murabaha agreement was secured by collateral, the bank shall be entitled to sell the collateral with the consent of the client in order to cover the debt without recourse to legal proceedings.
5. The parties to the Murabaha agreement shall be prohibited from participating in the Sharika/Musharaka agreement or in the transaction containing the liability of one of the parties to buy out the participation (share) of the other party in the Sharika/Musharaka agreement by means of the Murabaha transaction using cash or by means of deferred liabilities.
Article 738-12. Security of the Murabaha agreement
1. In order to ensure the client’s proper performance of obligations under the Murabaha agreement, the bank shall be entitled to require from the client to enter into the agreement on pledge of cash or another type of security. The funds transferred as collateral cannot be invested by the bank, except as otherwise provided in the Murabaha agreement.
The funds transferred as collateral cannot be credited in payment for the subject of the Murabaha agreement in accordance with the Murabaha agreement.
2. The bank shall be obliged to return the pledge after the client fulfills its obligations under the Murabaha agreement.
3. The Bank shall bear all risks associated with damage, destruction or loss of the subject of the Murabaha agreement during transportation or storage thereof, and they cannot be covered by means of a security.
Article 738-13. Responsibility for the subject of the Murabaha agreement
1. Unless otherwise provided by law or by the agreement for purchasing the subject of the Murabaha agreement on behalf of the bank, the bank shall not be liable for any defects of the subject of the Murabaha agreement after the goods become the client’s property.
2. If the client refuses to purchase the subject of the Murabaha agreement upon entry into force of the Murabaha agreement, the bank shall be entitled to sell the subject of the Murabaha agreement to the third party, imposing the obligation on the client to reimburse the bank’s expenses uncovered by the cost of sold goods, related to purchasing the subject of the Murabaha agreement, as well as by means of the security provided by the client.
Article 738-14. Selling price of the subject of the Murabaha agreement
1. The selling price of the subject of the Murabaha agreement shall be determined for the client as the sum of the price of purchase and the amount of the bank’s extra charge agreed upon by the parties of the Murabaha agreement.
2. The bank’s extra charge shall include the expenses of the bank related to the purchase of the subject of the Murabaha agreement, including transportation costs, legal payments to the third party, and mandatory state payments. In the case of insurance of the subject of the Murabaha agreement, insurance costs shall also be included in the bank’s extra charge.
The bank’s extra charge shall not include the expenses for paying the salaries to the bank’s employees and the expenses related to implementation of the subject of the Murabaha agreement.
3. The extra charge of the subject of the Murabaha agreement can be established in the form of:
1) a fixed lump-sum amount paid;
2) share in the cost price of the subject of the Murabaha agreement.
4. The selling price of the subject of the Murabaha agreement shall not be set indefinitely, due to its dependence on any indicators that will be known in the future. At the stage of conclusion of the Murabaha agreement, the selling price and the extra charge shall not be set depending on the indicators known to the client in advance. The amount of the extra charge shall not depend on time factors.
Article 738-15. Settlement procedure
1. Payments of the bank for the subject of the Murabaha agreement can be made by regular contributions on a short-term or long-term basis. After the conclusion of the Murabaha agreement, the bank shall not be entitled to demand additional payments due to delay in payment on the part of the client or the extension of the payment term.
2. The Bank shall be entitled to demand from the client an advance payment on account of payments due under the Murabaha agreement.
3. If the client does not make a regular payment for the subject sold by installment under the Murabaha agreement within the established period, the liability to pay the penalty may be imposed on him. The amount of the penalty and the procedure of payment thereof shall be determined by the Murabaha agreement.
The amount received as a penalty cannot be taken into account as the bank’s income and it shall be forwarded by the bank to charitable purposes in accordance with the legislation of the Kyrgyz Republic.
4. If the client unreasonably delays a regular payment for the goods purchased by him under the Murabaha agreement, the bank, subject to prior notification of the client about the payment terms, shall be entitled to require from the client to make early payment in full for the subject of the Murabaha agreement.
5. In case the client does not make a regular payment, and also if the client does not make a full payment for the subject of the Murabaha agreement ahead of the schedule, the bank shall be entitled:
1) to sell the goods to the third parties with compensation to the client of the funds received from the latter in the partial payment of the subject of the Murabaha agreement, if any;
2) not to formalize the client’s ownership right for the goods until the subject of the Murabaha agreement is paid in full.
§ 3. Sharika (partnership) agreement
Article 738-16. General provisions of the Sharika (partnership) agreement
1. The Sharika agreement is a partnership agreement between two or more parties through which each partner contributes a certain amount of money or, with the consent of all partners, tangible assets, which gives each partner the right to conduct business using the company’s assets on the basis of profit sharing under the Sharika agreement, and each partner shall bear losses in accordance with their contribution to the total capital of the company.
2. With a view to realize the set objectives, the parties to the Sharika (partnership) agreement shall be entitled to unite their assets and act both with establishment of a legal entity and without establishment thereof. If a legal entity is established, such organization may be provided with operator and process management functions. The partners shall be entitled to assign the operator and process management functions to one of the partners. In this case, a legal entity shall not be established.
Article 738-17. Requirements to conclusion of the Sharika agreement
1. The Sharika agreement shall be made in writing. If a legal entity is established on the basis of the Sharika agreement, it shall be subject to registration in the manner established by the legislation of the Kyrgyz Republic.
2. A bank shall be entitled to be a partner if the funds or property submitted by the parties for the purpose of carrying out partnership activities proceed from permissible sources. If establishment of a legal entity is envisaged under the Sharika agreement, then the Shariah rules and principles shall be observed when carrying out activities.
3. If a bank, having an appropriate license is a party to the Sharika agreement, additional regulations and requirements may be provided for it by the regulatory legal acts of the Kyrgyz Republic.
Article 738-18. Capital formation
1. The partners shall contribute to the total capital in accordance with the terms of the Sharika agreement.
2. The partners shall be entitled to contribute both monetary funds and other tangible and intangible assets as a contribution to the total capital. The expenses and labor related to performance of operator and process management functions can be taken into account as a contribution.
3. If tangible assets (goods) are contributed to the total capital, the value of such assets shall be determined by the independent experts.
4. Debt obligations (accounts receivable) shall not be entered as a contribution, except when they are inseparable from other assets made as a contribution to the capital. At the same time, the value of net assets shall be confirmed by the independent auditors.
5. The obligation of each partner to act within the framework of the Sharika agreement and in the company’s interests, as well as unconditional compliance with the Shariah rules and principles, shall be stipulated in establishing a legal entity within the framework of the Sharika agreement.
Article 738-19. Profit and loss sharing
1. The Sharika agreement shall provide for distribution of profits between the parties in the form of a share of the profits received in proportion to the contribution of each partner to the partner capital. The profit cannot be set in the form of a fixed amount of money. Each partner shall incur losses in accordance with his/her/its share in the capital.
2. Profit shall be distributed according to the actual results, without taking into account the expected profit from the company activities.
3. The parties may provide for a fixed remuneration to the partner who contributes in the form of providing services for managing the funds of the company established on the basis of the Sharika agreement or who renders the services in some other form, for example, provides accounting services. At the same time, the parties to the Sharika agreement can determine for such partner the greater part of the profit compared to the one he/she could earn in accordance with his/her/its share in the partner capital.
4. It is not allowed to receive from the profit a lump sum as a share in the profit or a percentage of the capital in the company established on the basis of the Sharika agreement.
5. The partners shall be entitled to distribute a part of the funds to any party in advance, which must be taken into account in the final settlement. If the amount of the advance payment given is higher than the assigned share of the profit, the party which received such an amount shall compensate for the difference.
6. If the assets acquired for leasing or services are the subject of the Sharika agreement, the amount received from these transactions shall be distributed annually between the partners in advance and shall be settled and compensated at the end of the term of the Sharika agreement.
7. The parties shall be entitled not to distribute in full or in part the received profit, and to send such amount to the reserves of solvency or the reserves to cover the loss of capital (an investment risk reserve), and also to send it as charitable donations.
8. It shall be prohibited to include a condition, which may result in violation of the profit sharing principle, in the Sharika agreement.
9. At the end of the term of partnership or its liquidation, the profit received from the sale of all existing assets of the company may be finally distributed on the basis of the Sharika agreement at the market value.
Article 738-20. Change of share in partnership
1. The partners shall be entitled to provide for in the Sharika agreement the possibility of changing the partners’ share in the distribution of profit on the date of its distribution, or the partner’s right to concede a part of his/her/its profit for the benefit of the other partner on the day of profit distribution.
2. The Bank shall not be entitled to voluntarily accept the losses of other partners. However, the Sharika agreement shall provide for the right of other partners to voluntarily accept, without any preliminary condition, the liability for losses at the time of their occurrence.
3. The partners shall be entitled to provide for in the Sharika agreement the provisions on the use of the method of profit sharing regardless of whether it is constant or not. The use of any profit sharing method shall not result in violation of the profit sharing principle or to the exclusion of a participant from profit sharing. Any condition or method of profit sharing, which can lead to such result, shall be void.
4. The change in the share of contributions of the participants in the Sharika agreement shall entail the change in the profit and loss sharing ratio attributable to each partner, taking into account the changed amounts of their contribution to partner capital.
Article 738-21. Liability of the partners under the Sharika agreement
1. The Sharika agreement shall provide for responsibility of the partners for providing collateral to cover losses in case of wrongful acts, negligence or violation of the Sharika agreement by the partners/partner.
2. If the guarantee of compensation for losses suffered by some or all partners is provided by the third party, such guarantee shall meet the following requirements:
1) the legal capacity and financial obligation of the third party acting as a guarantor shall be independent of the Sharika agreement;
2) the guarantee shall not be granted for a certain compensation and shall not be related to the Sharika agreement;
3) the third party acting as a guarantor shall not own more than half of the amount of capital in the company, to which it gives a guarantee;
4) the company that received the guarantee should not own more than half of the capital amount in the company, providing such a guarantee;
5) a partner in whose/which favor a third party guarantee is issued, shall not be entitled to refuse from fulfilling his/her/its obligations under the Sharika agreement if the guarantor does not fulfill the terms of the guarantee.
Article 738-22. Term of the Sharika agreement. Termination of the activity of the incorporated legal entity
1. The parties may enter into the Sharika agreement for a specified period, or without specifying a term, or establish as a basis for the termination of the Sharika agreement a cancellation condition (a condition that is the basis for the termination of the Sharika agreement).
The Sharika agreement shall be terminated also in case of liquidation of a legal entity established by the partners in accordance with the legislation of the Kyrgyz Republic.
2. Each partner shall be entitled to withdraw from the partnership subject to the conditions of the Sharika agreement. The withdrawal of one of the partners shall not entail the termination of partnership of the remaining partners, if the number of remaining partners is two or more.
3. If the Sharika agreement is concluded for a certain period, the partners of the Sharika agreement shall be entitled to terminate the partnership ahead of schedule upon the agreement of the parties. In all such cases, the obligations and actions that the partners commit before the termination of the Sharika agreement shall remain unchanged and continue to exist.
4. A legal entity established on the basis of the Sharika agreement shall terminate its activities upon the expiry of the term of the Sharika agreement or ahead of schedule upon agreement of the parties.
5. In case of liquidation of a legal entity established by the partners, the parties shall be entitled to enter into a new Sharika agreement on the basis of the assets survived during the actual liquidation of the legal entity.
6. If liquidation is related to the expiry of the term of the Sharika agreement, all existing assets shall be sold at the market prices, and the proceeds from sales shall be used for the following purposes:
1) for covering the costs of liquidation;
2) for payment of financial liabilities;
3) for distribution of remaining assets among the partners in accordance with their share in the total capital. If the assets are not sufficient and the parties cannot return all their invested capital, the assets shall be distributed in proportion to their share in the total capital.
§ 4. Musharaka agreement
Article 738-23. General provisions of the Musharaka agreement
1. The Musharaka agreement is a form of partnership based on the Sharika agreement, when one of the partners promises to gradually buy out the share of the other partner until the ownership right of the share is fully transferred to him/her/it.
2. The Musharaka agreement, as well as the agreement on purchase of the share, may be concluded regardless of whether the Sharika agreement stipulates the conclusion of such agreements or not. One of these agreements shall not be made under the condition of concluding another contract.
3. Any provision that gives any party the right to withdraw their share from the partner shall not be included in the Musharaka agreement.
4. The rules provided for in paragraph 3 of this chapter shall be applied to the relations under the Musharaka agreements.
§ 5. Ijarah agreement
Article 738-24. General provisions of the Ijarah agreement
1. The Ijarah agreement is an agreement on the special acquisition by the lessor of the equipment or other property in the ownership and provision thereof to the lessee in property lease (lease) for temporary possession and use for an agreed period, on a paid basis, with the right of redemption or without it, in accordance with concluded Ijara agreement (without redemption) or the Ijarah Muntahiyah Bittamlik agreement (with redemption).
2. If a bank that has an appropriate license is a party to the Ijara agreement, additional regulations and requirements may be provided for it by the regulatory legal acts of the Kyrgyz Republic.
3. The provisions of this paragraph shall also be applied to the Ijarah Muntahiyah Bittamlik agreement.
Article 738-25. Subject of the Ijarah agreement
1. Any movable and immovable property may be the subject of the Ijarah agreement.
2. The subject of the Ijarah agreement shall be used subject to its preservation, and the benefits derived from implementation of the Ijarah agreement shall comply with the legislation and requirements of the Shariah.
3. The subject of the Ijarah agreement may be a share in the individual assets that are held together with the lessee’s assets, regardless of whether the lessee is a partner of the lessor or not. In this case, the lessee can benefit from the leased share in the same way as the lessor uses, i.e. by means of a time-sharing regime or by determining some part of the property.
Article 738-26. Parties to the Ijarah agreement
1. The parties to the Ijarah agreement shall be the lessee, the lessor and the seller.
2. The lessee may be an individual or a legal entity, who/which, in accordance with the Ijarah agreement, shall be obliged to accept the subject of the agreement for a certain fee, for a certain period of time and under the certain conditions for temporary possession and use. The lessor may be an individual or a legal entity (including a bank that has a corresponding license), which, through its own and (or) borrowed funds, takes possession of the property and provides it as the subject of the Ijarah agreement to the lessee for a certain fee, for a certain period of time and under certain conditions for temporary possession and use, with or without transfer to the lessee of the ownership right for the subject of the agreement.
The seller is an individual or a legal entity that, in accordance with the purchase and sale agreement concluded with the lessor, sells to the latter in due time the property that is the subject of the Ijarah agreement. The seller can simultaneously act as a lessee under the same Ijarah agreement.
3. The Ijarah agreement may be entered into with several lessees entitled to the same benefit in respect of any property and the lease period thereof, without determining any specific period of time for a certain person, provided that the rights of each lessee are not infringed. In this case, each lessee can receive benefits from the property during the period established for it under the agreement between the lessees.
4. The lessor can purchase or manufacture the property described in the specification upon the request of the lessee. The lessee shall be entitled to refuse property that does not meet the specification.
Article 738-27. Procedure for entering into the Ijarah agreement
1. The Ijarah agreement shall be concluded in writing and be subject to notarial certification and state registration in cases provided for by law.
2. Under the Ijarah agreement, the property shall be transferred upon conclusion of the Ijarah agreement.
3. The lessee enters a certain amount to the lessor upon agreement by the parties, as a guarantee of meeting his/her/its obligations - promise to take property for rent. The amount entered shall be used only for compensation of damage if the lessee violates the promise. Upon agreement with the lessee, the lessor may use the specified amount of money for investment on the basis of the Mudaraba agreement concluded between the lessor and the lessee.
Article 738-28. Liability of the parties under the Ijarah agreement
1. The liability for any defects in the property purchased by the lessor at the request of the lessee shall be borne by the lessor, except as otherwise provided by the Ijarah agreement.
2. The lessee shall be liable for any deterioration of the leased property either as a result of his own actions or as a result of the impact of events that are beyond his/her control, affecting the benefits expected to be received under the Ijarah agreement.
3. If the benefit from the leased property is reduced in whole or in part as a result of the unlawful actions of the lessee during the lease of this property, the lessee shall be obliged to remove the obstacles for the benefit of the lessee. In this case, the lease term shall be extended for a period during which the lessee could not benefit from the leased property, and the lessee shall not waive the lease during the period of the lost profit.
4. The lessor shall carry out basic maintenance, and the lessee shall perform current or periodic (routine) maintenance of the property, except as otherwise provided by the Ijarah agreement.
5. The lessee shall be liable for damage caused to the property through his/her fault.
Article 738-29. Insurance of the subject of the Ijarah agreement
1. The subject of the Ijarah agreement shall be insured.
2. Property insurance shall be carried out by the lessor. Insurance costs shall be included in the lease payment.
Article 738-30. Essential conditions of the Ijarah agreement
The essential conditions of the Ijarah agreement are as follows:
1) the name, as well as description of the subject of the Ijarah agreement, sufficient for identification;
2) the rights and obligations of the parties related to purchase and transfer of the subject of the Ijarah agreement;
3) the amount, procedure, conditions and terms for making lease payments;
4) an indication of the party that chooses the subject of the Ijarah agreement and the seller;
5) other conditions.
Article 738-31. Settlements (payments) under the Ijarah agreement
1. The lease payment under the Ijarah agreement shall be mandatory and the right of the lessor to receive the lease payment shall become effective from the moment when the lessee begins to benefit from the lease of the subject of the Ijarah agreement or when the lessor provides the lessee with the right to benefit from the subject of the Ijarah agreement.
2. If the lease payment is subject to any changes, the amount of the lease payment shall be provided for the first term of the Ijarah agreement. The amount of lease payment shall not be determined for subsequent terms according to a certain basis of comparison. The exact order, which is the determining factor for the amount of the lease payment for the remaining terms, shall be the fundamental component of such comparison basis.
3. If the lessor does not provide the property to the lessee within the period provided for in the Ijarah agreement, the lease payment shall not be paid for the period between the date of entry of the Ijarah agreement into force and the actual date of providing the lessee with the property. The amount of the lease payment shall accordingly be reduced if the parties have not agreed that the lease term will be extended for a period equivalent to the period of failure to provide the property after the original date of termination of the Ijarah agreement.
4. The lease payment can be made in cash, in kind (goods) or by any advantages (services).
The lease payment shall be established either in the form of a lump sum payment, including the term of validity of the Ijarah agreement, or in the form of partial payments for certain validity terms of the Ijarah agreement and may be paid in full as advance payment or in installments for a period equal to or exceeding the validity term of the Ijarah agreement. The lease payment can be fixed or variable amount as agreed by the parties.
5. Upon agreement by the parties, a part of the lease payment can be paid to the lessor, the other part can be aimed at covering any expenses approved by the lessor, such as the cost of basic maintenance, insurance, etc.
6. The parties shall be entitled to change the amount of the lease payment for future lease periods, i.е. the periods during which the lessee does not yet receive any benefit from the lease.
7. The lease payment, not made for any previous periods, shall become a debt that the lessee must pay to the lessor. The amount of debt shall not be subject to increase.
8. If the right to receive collateral provided by the lessee is lost, the lessor may deduct from such amounts only the amount, which is due to him as the lease payment for the prior periods, rather than all partial lease payments, including payments in respect of which the obligations have not become due for the periods for which the lessee has not yet benefited from the leased property. The lessor can also deduct from the amount of the collateral all legal compensations that the lessee shall pay for violation of the Ijarah agreement.
9. The lessor shall be entitled to demand from the client early repayment of the lease payments in case of an unjustified delay of the lease payments, provided the lessee is notified of the payment terms. However, this cannot serve as a basis for increasing the amount of lease payment.
10. The Ijarah agreement may provide for imposing a financial sanction on the lessee for unreasonable delay of the lease payment under the Ijarah agreement.
Paid financial sanctions cannot be credited by the lessor as an income and shall be subject to a charitable donation.
Article 738-32. Termination of the Ijarah agreement and its consequences
1. The Ijarah agreement may be terminated:
2) in case of violation of the terms or termination of the lease payments;
3) when the leased property is damaged;
4) upon the expiry of the term of the Ijarah agreement;
5) when selling the property to the lessee.
2. The lessor shall be entitled to sell the leased property to the third party by notifying him/her/it of the Ijarah agreement. At the same time, all rights and obligations under the Ijarah agreement will be transferred to the new owner.
3. The lease payments shall not be made upon termination of the Ijarah agreement due to destruction of the subject of the Ijarah agreement and impossibility of its further use.
4. In case of partial damage to the property that resulted in a decrease of the planned income, the lessee shall be entitled to terminate the Ijarah agreement or, upon agreement with the lessor, change the amount of the rent payment. At the same time, the lease payments shall not be levied for the period of the lost profit.
5. If the lessee terminates using the leased property or returns it to the owner without his/her/its consent, the lease payment remains payable to the owner for the remaining validity term of the Ijarah agreement, and the lessor cannot lease it to another lessee during this validity term of the agreement, however, the lessor must retain the property in possession of a new lessee.
6. The basis for transfer of the ownership right is an indication thereof in the Ijarah agreement or in another document that contains the promise:
1) to sell for agreed payment or by progressive payment the remaining part of the lease payment or by paying the market value of the leased property;
2) to donate it without giving a reason;
3) to donate it after payment of the remaining due amounts.
7. The promise to transfer the ownership right is mandatory for the lessor; however, a separate bilateral agreement shall not be concluded.
8. Transfer of the ownership right shall be implemented on the basis of a gift or sale agreement, which is made separately from the Ijarah agreement and the promise made.
9. The new Ijarah agreement for transfer of the ownership right shall not be concluded, if the Ijarah agreement with a suspensive condition on fulfillment of the conditions is made.
10. If at least one payment is not paid during implementation of the Ijarah agreement or is paid out of time, the ownership right for the property may not be transferred.
§ 6. Qard Hasan agreement
Article 738-33. General Provisions
1. Under the Qard Hasan agreement, one party (the lender) shall give the other party (the borrower) the funds as a loan under the terms of repayment and without charging any fees for it. In this case, the party that accepted the funds shall guarantee the repayment of the funds at the first request of the other party.
2. The funds can be raised or the loans can be provided under the terms of repayment without charging any fees under the Qard Hasan agreement.
Article 738-34. Procedure of entering into the Qard Hasan agreement
1. The Qard Hasan agreement shall be made in writing.
2. Essential terms of the Qard Hasan agreement are as follows:
1) the size of the amount provided;
2) the validity term of the agreement, the date of repayment;
3. If the bank that has the appropriate license acts as one of the parties under the Qard Hasan agreement, the amount of payment for the bank’s services on maintaining the current account shall also be specified in the Qard Hasan agreement.
§ 7. Istisna’a and Parallel Istisna’a agreements
Article 738-35. General provisions of the Istisna’a and Parallel Istisna’a agreements
1. Under the Istisna’a agreement, the property produced by the manufacturer or built by the construction contractor on the basis of the order (project) shall be transferred to the customer after completion of the works at a predetermined price.
2. The subject of the Istisna’a agreement shall be production of a new product or construction that has special characteristics according to the customer’s requirement and the manufacturer agreed to comply with the stipulated specification provided that the manufacturer agreed to execute the order at the agreed price.
3. The Parallel Istisna’a agreement shall operate on the basis of two separate Istisna’a agreements, according to which one and the same person can act as a supplier in the first case and conclude an agreement with the customer on payment and delivery, and as a buyer in the second case and conclude another contract with a manufacturer and a construction contractor in order to fulfill his/her/its specific obligations in relation to the customer, which he/she/it has under the first Istisna’a agreement.
Article 738-36. Parties to the Istisna’a and Parallel Istisna’a agreements
1. The parties to the Istisna’a and Parallel Istisna’a agreements shall be a customer/buyer, a supplier and a manufacturer (construction organization).
2. Any legal entities or individuals can act as the parties to the aforementioned agreements.
Article 738-37. Requirements for concluding the transactions under the Istisna’a and Parallel Istisna’a agreements
1. The Istisna’a and Parallel Istisna’a agreements shall be made in writing.
2. The Istisna’a agreement shall be made on the basis of the customer’s request. The supplier shall be obliged to assess the customer’s property in order to verify solvency thereof on the basis of submitted financial documents.
3. The Istisna’a agreement shall provide for purchasing the ownership of the subject of the Istisna’a agreement by the party to this agreement for the subsequent sale to the customer who shall be the other party to the agreement.
The subject of the Istisna’a agreement shall to be sold to the customer before it passes into the actual possession of the seller. The party to the Istisna’a agreement shall be entitled to authorize the customer to act as its agent for purchase of the property at the request of the customer. In this case, the agency agreement shall be made separately from the Istisna’a agreement.
4. The price of the subject of the agreement, the date and means of delivery, the resources used (own or with the involvement of goods produced by other persons existing before the conclusion of the agreement, except as otherwise provided by the agreement), as well as other conditions shall be indicated in the Istisna’a agreement.
5. Upon conclusion of the Istisna’a agreement, amendments can be introduced in the previously agreed specifications intended for production or construction by agreement of the parties, as well as additional requirements can also be introduced provided that the price will be accordingly adjusted and an appropriate reasonable period will be provided to meet the new requirements.
Article 738-38. Price of the Istisna’a agreement and settlement procedure
1. All proposals for determining the price shall be considered prior to conclusion of the Istisna’a agreement.
The price of the subject of the Istisna’a agreement shall be determined at the moment of entering into the Istisna’a agreement, and can be paid in the form of monetary funds or real assets.
2. Settlement under the transaction can be made on a deferred basis or in installments during the period stipulated in the Istisna’a agreement, or if the delivery of the subject of the Istisna’a agreement is phased-in, a part of the amount can be paid immediately, and the remaining part shall be paid in installments according to the stages of delivery or performed works.
3. A fee shall not be charged for extension of the payment term. A discount can be made for a preliminary payment, even if it is not provided for in the Istisna’a agreement.
4. Expenses for sale of the subject of the Istisna’a agreement shall be borne by the customer.
Article 738-39. Peculiarities of the Istisna’a and Parallel Istisna’a agreement
1. In case of a manufacturer’s bankruptcy, the buyer shall have a priority right in respect of uncompleted production, provided that the latter has provided partial payment for the basic materials.
2. A period, during which the manufacturer can be held liable for any defects or for the maintenance of facilities that are the subject of Istisna’a agreement, can be set herein.
3. If the subject of the Istisna’a agreement is the construction of real estate, the parties shall determine the land plot where the construction of the facility will be carried out and which may belong to the final buyer or contractor.
4. If the construction of buildings or public facilities is implemented on the land plot owned by the customer, the construction financing shall be borne by the manufacturer if the latter does not fulfill the conditions of the Istisna’a agreement, or cannot complete the work within a prescribed period of time, and this provision comes into force from the moment of terminating the works by the manufacturer.
5. If the contractor is not able to continue fulfilling its obligation, the customer (the owner of the land plot) shall be entitled to take possession of unfinished construction or public facilities that are already ready without providing the contractor with compensation.
If the Istisna’a agreement is not performed due to the fault of the contractor, the customer can only receive the paid-up cost of the constructed structure, and the construction contractor shall compensate the final buyer for the amount of actual losses that he/she/it incurred.
If failure to comply with the Istisna’a agreement is due to improper actions of the customer, the contractor shall be entitled to receive an amount equal to the cost of the completed work and compensation for any loss or damage.
If failure to comply with the Istisna’a agreement is due to the reasons to which neither party thereof is related, the final buyer shall have the right only to the constructed structure that is already in place and neither party shall be liable for compensation for losses or damage, incurred by the other party.
6. If amendments in the legislation resulted in increased value of the subject of the Istisna’a agreement, the additional costs shall be borne by the customer.
7. Expenses for the supervision over performance of the Istisna’a agreement shall be borne by the customer, except as otherwise provided herein.
8. The manufacturer shall be released from the obligation if the subject of the Istisna’a agreement is transferred to the final buyer or to the person appointed by him, if the final buyer is able to exercise full control over the subject of the Istisna’a agreement.
9. The specific features of the transactions under the Istisna’a and Paralle Istisna’a agreements, in which the bank participates, may be established by the regulatory legal acts of the Kyrgyz Republic.
Article 738-40. Conditions for transfer and acceptance of the subject of the Istisna’a and Parallel Istisna’a agreements
1. Property under the Istisna’a agreement shall to be made in time and meet the requirements established by the contract. The manufactured and delivered property shall be transferred by the manufacturer, and the customer shall accept it.
If the state of the subject of the Istisna’a agreement does not comply with the requirements specified in the agreement, the customer shall be entitled to refuse to accept or accept it, which will mean satisfactory implementation of the Istisna’a agreement, with the possibility of changing the price.
2. In case of unreasonable refusal by the customer, the produced property remains in possession of the manufacturer, in such case the manufacturer shall not be liable for losses and damage that may occur with the subject of the Istisna’a agreement, if such losses and damage are not the result of negligence or wrongful acts of the manufacturer. The customer shall bear the expenses for preservation of the subject of the Istisna’a agreement.
3. Delivery of the subject of the Istisna’a agreement shall be considered as fulfilled from the moment of transfer to the actual possession of the final buyer. From the moment of transfer of the subject of the Istisna’a agreement to the buyer, the buyer shall be liable for any loss or damage that occurs subsequently with the subject of the Istisna’a agreement, without proof of negligence or wrongful acts on the part of the manufacturer.
§ 8. Guarantee agreement
Article 738-41. General provisions of the guarantee agreement
1. Under the guarantee agreement (transaction on ensuring performance of obligations), one party shall act as a guarantor to the other party for the obligations of the third party. Performance of the obligation can be provided simultaneously in several ways.
2. Any individual or legal entity with spotless reputation, which does not raise any doubts about his/her/its solvency, can act as a guarantor.
The bank shall be entitled to provide guarantees for the financial obligations of the customer to the amount of the principal debt provided that the customer compensates for the principal debt to the bank. The bank shall be entitled to provide guarantees for participation in the tender.
Article 738-42. Requirements for entering into the guarantee agreement
1. The guarantee agreement shall be made in writing and shall be subject to notarial certification in cases provided for by the legislation of the Kyrgyz Republic.
2. The validity term and the amount for which the guarantee is provided shall be established in the guarantee agreement.
3. The invalidity of the guarantee agreement shall not entail the invalidity of the underlying obligation. The invalidity of the underlying obligation shall entail the invalidity of the guarantee agreement.
Article 738-43. Conditions of the guarantee agreement
1. The guarantor provides guarantees for the client’s financial obligations to the amount of the principal debt provided that the customer compensates for the principal debt to the bank, unless otherwise provided by the agreement.
2. The creditor shall be entitled to demand the amount of the debt from both the debtor and the guarantor. If the creditor exempts the debtor from the debt repayment, the guarantor shall also become free of the obligations on the debt repayment.
Exemption of the guarantor from financial liability shall not entail the release of the debtor from the debt repayment.
3. If the guarantor repays the debt, the debtor shall compensate for the repaid amount, remuneration for providing the bank guarantee and other guarantor’s commissions in accordance with the terms stipulated by the agreement between the parties.
Article 738-44. Restriction under the guarantee agreement
1. A bank that is a party to the Mudaraba agreement or a Musharaka agreement shall not be entitled to guarantee changes in the exchange rate of foreign currencies.
2. It is not permitted to issue letters of guarantee in favor of the applicant, who will use them in order to receive an interest-bearing loan or to make prohibited transactions.
3. The third party (other than Mudarib or investment agent) is allowed to undertake a volunteer obligation that it will compensate for the investment losses of the party to whom/which the obligation was given, provided that the guarantee is not in any way related to the Mudaraba financial contract or the contract of the investment agency.
Article 738-45. Exemption from performance of obligations
Failure to comply with the terms and conditions of the agreement on providing by one of the parties the collateral in the form of a guarantee from the third party shall entitle the other party to the transaction to terminate the contract.
Article 738-46. Pledged property as a guarantee
1. Pledged property shall be a guarantee of the obligation fulfillment. The property owned by the pledger may be provided as collateral, and the pledger shall be entitled to dispose of the pledged property, except as otherwise provided by the agreement between the parties. When the property is provided as collateral, a corresponding collateral agreement shall be made. The terms and conditions of the collateral agreement shall be binding for the pledger, even if the pledged asset is not in the possession of the creditor.
2. The collateral agreement may provide for the creditor’s right to sell the pledged property so that the creditor could receive the necessary amount (if the debtor cannot repay the debt or will refuse to repay the debt) from the amount received from the sale of the pledged property without recourse to legal proceedings.
3. The collateral agreement shall not be terminated unilaterally. The death or liquidation of the pledger or the pledgee shall not be the ground for termination of the collateral agreement.
4. One and the same property may be provided as collateral against more than one obligation provided that the subsequent pledgee will be duly notified of the previous collateral.
Article 738-47. Sale of pledged property to repay debts
1. The subject of collateral can be sold if the debtor is not able to fulfill his/her/its obligations on the debt repayment.
2. The pledger shall have the pre-emptive right to return pledged property by repaying the debtor’s debt.
3. The pledger (debtor) shall be fully responsible for paying all expenses related to documentation, storage and sale of pledged property.
4. The seller may obtain from the buyer the right to store the sold property as collateral in order to ensure making of remaining payments by installments. The seller is also allowed to leave in his/her/its possession the property sold on the basis of one-time payment, until he/she/it receives payment for the property.
5. The creditor (the pledgee) shall have the right to collateral until full repayment, except for the cases when he/she/it agreed to partial repayment provided that the debtor is released from payment. The creditor shall not be entitled after the payment of the debt to withhold the pledge as security for other unsecured debts, if this was not provided for in the agreement.
6. The pledger is allowed to use the pledged property with the consent of the pledgee.
Article 738-48. Guarantee fee
1. A fee may be provided for in the guarantee agreement. Commission fees for provision of a letter of guarantee shall not exceed the fees that are usually charged for such services.
2. The expenses for providing a documentary letter of credit shall be paid by the client. The bank may also charge fees for the services rendered.
3. Additional requirements for the provision of guarantees may be established by the regulatory legal acts of the Kyrgyz Republic.
§ 9. Salam agreement
Article 738-49. General provisions under the Salam agreement
1. Under the Salam agreement, one party (the seller) shall undertake to deliver the goods to the other party (the buyer) within a certain period of time in the future, and the buyer shall undertake to pay for this product at the moment of entering into the Salam agreement and to accept it in the future. The price shall be treated as capital in this transaction.
2. The Parallel Salam agreement is an agreement that includes two separate agreements. In the first agreement, one party shall act as a buyer and conclude an agreement with the customer on purchase of a certain product with subsequent delivery and payment when signing the agreement. According to the second agreement, this party shall sell the same goods, in the same quantity and on the date, as indicated in the first agreement, to another customer who pays the cost of the goods at the time of signing the second agreement.
3. The provisions of this paragraph shall also be applied to the Parallel Salam agreement.
Article 738-50. Subject of the Salam agreement
1. The goods and other property that can be weighed, measured or counted, with the exception of foreign currency, precious metals (gold, silver, etc.) shall be the subject of the Salam agreement.
2. The goods shall be in such a form that allows making a specification, which excludes any uncertainty, and the seller shall be responsible for compliance with it.
3. The goods shall be clearly identified in accordance with accepted practice and the experts’ conclusion.
4. The goods shall be available in entering into the Salam agreement.
5. Debt shall not be used as capital under the Salam agreement.
Article 738-51. Requirements for entering into the Salam agreement
1. The Salam agreement shall be made in writing and be subject to notarial certification in cases provided for by the legislation of the Kyrgyz Republic.
2. For implementation of the transactions under the Salam agreement, preliminary agreements may be concluded, within the framework of which separate agreements may be concluded specifying their validity period.
3. The preliminary agreements shall provide for the scope of the Salam agreement and the intentions of the parties to purchase and sell the goods, the quantity and specifications of the goods, the way of delivery thereof are determined, as well as the basis for price formation and the method of payment, enforcement of obligations (guarantees) and other conditions.
Article 738-52. Payment under the Salam agreement
1. Payment for the goods shall be made immediately, at the moment of entering into the Salam agreement. In exceptional cases, payment may be deferred for a period not exceeding three days. The delay shall not affect the fulfillment of the Salam agreement, provided that the delay period is not equal to or does not exceed the delivery period of the goods specified by generic characteristics.
2. According to the Salam agreement, instead of paying the price of the goods, it is allowed to exchange it for the other goods, determined by generic characteristics. In this case, the grade, type, specification and quantity of the replacement goods shall be established.
Article 738-53. Deliveries under the Salam agreement
1. The time, type and place of delivery shall be specified in the Salam agreement.
2. The seller shall deliver the goods to the buyer on the specified day, in accordance with the terms of the agreement, in accordance with the agreed specifications of the goods and in the agreed quantity. The buyer, on the other hand, shall accept the goods if they meet the requirements stipulated by the specifications in the Salam agreement.
3. The goods can be delivered ahead of schedule by agreement between the parties.
4. If the seller offers the goods of a higher quality than the one, which was required in accordance with the contractual specifications, the buyer shall accept the goods if the seller does not request a higher price for higher quality. This shall be applied only if the description (with lower qualitative specifications) stipulated in the Salam agreement is not considered an essential condition.
5. If the quality of the delivered goods is lower than the one, which was required in accordance with the contractual specifications, the buyer shall be entitled to either reject or accept the goods in such condition. If the goods are accepted, the parties may agree to accept such goods with a reduction in the price.
Article 738-54. Introduction of amendments and termination of the Salam agreement
1. If the seller cannot fulfill his/her/its obligation or the seller does not have all or part of the goods available on the specified date, the buyer shall be entitled:
1) to postpone the delivery of the goods and determine a different delivery date for the goods;
2) to terminate the Salam agreement and recover paid funds and a penalty. The penalty amounts cannot be credited as the income of the buyer and shall be subject to referral to charitable purposes.
2. The parties shall be entitled to agree the replacement of goods by other goods.
Article 738-55. Restrictions under the Salam agreement
1. A reservation providing for financial sanctions for delay in the delivery of goods shall not be included in the Salam agreement.
2. The seller shall be entitled to enter into a separate Salam agreement with a third party in order to purchase goods of the same specification as the ones provided for in the first Salam agreement and to fulfill the obligation under the first Salam agreement and deliver these goods.
3. The buyer shall be entitled to enter into a separate Parallel Salam agreement with a third party in order to sell the goods purchased on the basis of the Salam agreement, and the goods, the description of which coincides with the description of the goods that are expected to be purchased through the first Salam agreement.
4. The parties shall not be allowed to bind their obligations under the Salam agreement with the obligations specified in paragraphs 2 and 3 of this article.
The obligations and rights under two Salam agreements shall be separate. If the obligations under the first Salam agreement are violated, the other party (the affected party) shall not be entitled to attribute this loss or damage to the party with which the first party entered into the Parallel Salam agreement.
5. It is forbidden to issue bonds on debt obligations arising from the Salam agreement.
§ 10. Agreements of custodial (Wadia Yad Amana)
and guaranteed (Vadia Yad Damana) storage
Article 738-56. Agreement of custodial storage
1. Under the custodial storage agreement, one party (the custodian) shall undertake to store monetary funds or other valuables transferred to it by the other party (client), to carry out the client’s instructions with respect to these values ​​without disposing of them.
2. The custodial storage agreement shall be uncompensated.
3. A bank having an appropriate license shall provide services under the custodial storage agreement as storage of cash or other valuables in the bank safes (cells).
Article 738-57. Agreement of guaranteed storage
1. Under the agreement of guaranteed storage, a bank that has an appropriate license shall receive money from the client and dispose of them for profit.
2. The services under the agreement of guaranteed storage shall be provided by the bank through opening and servicing the accounts for deposits.
3. The bank may, at its discretion, pay compensation (hiba) to the client from the profit received upon placement of the funds attracted under the agreement of guaranteed storage.
4. The bank shall be entitled to establish the procedure, size and rules for payment of remuneration due to the client.
5. The bank shall be entitled to pay remuneration to the client both in monetary form and in another form, not prohibited by law.”;
9) the chapter 36 shall be amended as follows:
“Chapter 36. Bank deposit
Article 749. The notion of a bank deposit
1. Bank deposit means funds in the national or foreign currency placed by the individuals and legal entities in the bank for the purpose of storage for some certain period or on demand and receipt of income, or until the occurrence (non-occurrence) of the circumstances (events) specified in the concluded contract.
2. In entering into the bank deposit agreement, a bank shall open a bank account for a client to credit funds.
3. The National Bank of the Kyrgyz Republic issues regulatory legal acts regulating the procedure of work with the deposits in accordance with the legislation of the Kyrgyz Republic.
Article 750. Right to attract funds to deposits
1. The right to attract deposits shall belong exclusively to the banks operating on the basis of a license issued by the National Bank of the Kyrgyz Republic and participating in the deposit protection system in the banks that have received the relevant license from the National Bank of the Kyrgyz Republic, subject to the restrictions established by it. The banks shall ensure the safety of deposits and the timely fulfillment of their obligations to the depositors.
Any other legal entities and individuals that do not relate to the authorized persons specified in the first subparagraph in part 1 of this article shall not be entitled to raise funds in any form on a regular basis, including by public attraction, on terms of urgency, repayment and payment.
The liability provided for by the legislation of the Kyrgyz Republic shall be borne for breach of this prohibition.
2. The attraction of funds to deposits shall be documented by the bank deposit agreement.
3. If a deposit is accepted from a depositor by a person who does not have the right to do so, or in violation of the established procedure, the depositor may demand an immediate return of the deposit amount, as well as payment of interest accrued on it stipulated in Article 360 ​​of this Code and compensation, in excess of the amount of interest, of all the damages caused to the depositor. If such a person accepted, on the terms of the bank deposit agreement, the funds of the depositor, such agreement shall be invalid.
4. Unless otherwise established by the banking legislation of the Kyrgyz Republic, the consequences provided for in paragraph 3 of this article shall also be applied in the following cases:
1) attracting the funds of the citizens and legal entities into the deposits for the bills or other securities excluding the receipt of the deposits on demand by their holders and the performance by the depositor of other rights provided for in the rules of this chapter;
2) attracting the funds of the citizens and legal entities by selling them the shares and other securities, the issue of which was deemed illegal.
Article 751. Bank deposit agreement
1. Under the bank deposit agreement, a bank that received the monetary funds (deposit) from the depositor or for the depositor, shall undertake to pay such an amount to the depositor and interest thereon or income in a different form on the terms and in the manner provided for in the agreement.
The bank deposit agreement shall be considered concluded on the day the deposit amount is received by the bank.
2. The bank deposit agreement, in which the depositor acts as a citizen, shall be recognized as a public contract.
Article 752. Form of the bank deposit agreement
1. The bank deposit agreement shall be made in writing.
The written form of the bank deposit agreement shall be considered to be complied with if the deposit is certified by a savings book, a savings or deposit certificate or other document issued by the bank to the depositor that meets the requirements for regulatory documents of the National Bank of the Kyrgyz Republic.
2. Failure to comply with the written form of the bank deposit agreement shall entail invalidity of this agreement. Such agreement shall be void.
Article 753. Types of deposits
1. The bank deposit agreement may be of the following types:
1) an on-demand bank deposit agreement;
2) a fixed-term bank deposit agreement;
3) a deposit agreement on other terms of repayment.
2. An on-demand bank deposit agreement is understood as an agreement, according to which a bank shall be obliged to return a deposit and pay interest accrued on it at the first request of a depositor.
The condition of the agreement on waiver of the right to receive the deposit on the first demand shall be invalid.
3. A fixed-term bank deposit agreement is understood as an agreement under which a bank shall be obliged to repay a deposit and pay interest accrued on it upon expiration of the term specified in the agreement.
4. A deposit agreement on other terms of repayment is understood as an agreement in accordance with which a bank shall be obliged to repay a deposit and pay interest accrued on it upon the occurrence (non-occurrence) of the circumstances (events) specified in the concluded agreement.
5. In cases where a depositor does not require repayment of a fixed-term deposit amount after the expiry of the term or the amount of a deposit on other terms of repayment - upon the occurrence of the circumstances stipulated in the agreement, the agreement shall be deemed prolonged on the terms of the on-demand deposit, except as otherwise provided for by the agreement.
Article 753-1. Minors’ deposits
1. The minors from the age of fourteen to eighteen years shall be entitled to independently place deposits with the banks and dispose of them in accordance with this Code and the banking legislation of the Kyrgyz Republic without consent of their parents, adoptive parents and trustees.
2. The deposits in the name of the minors may be made by the third parties (a deposit to the benefit of a third party).
3. The deposit made in the name of a minor under fourteen years shall be administered by the parents or their legal representatives.
Article 754. Interest on the deposit
1. The bank shall pay interest to the depositor on the amount of the deposit in the amount determined by the bank deposit agreement.
2. The bank shall be entitled to change the amount of interest payable in respect of the on-demand deposits, except as otherwise provided for by the bank deposit agreement.
If the bank reduces the amount of interest, the new interest rate shall be applied to the deposits made before the notice to the depositors about the interest reduction, after thirty days from the date of the relevant message, except as otherwise provided for by the bank deposit agreement.
3. Determined under the bank deposit agreement interest rate on a deposit, made on the terms of issuing thereof after a certain period or when the circumstances specified in the agreement occur, cannot be reduced by the bank unilaterally.
Article 754-1. Procedure for calculating and paying interest on the deposit
1. Interest on the amount of the bank deposit shall be accrued from the day following the day of its receipt in the bank until the day preceding its return to the depositor, or its write-off from the depositor’s account for other reasons.
2. Interest on the amount of the bank deposit shall be paid to the depositor upon his/her/its request after the expiration of each month or quarter, and the interest unclaimed during this period increases the amount of the deposit for which interest is accrued, except as otherwise provided by the bank deposit agreement.
Upon the return of the deposit, all interest accrued and unpaid by this time shall be paid.
Article 755. Ensuring the deposit repayment
1. The Bank shall ensure the safety of the deposit and the timeliness of its repayment to the depositor. The bank shall be obliged to repay the deposit in accordance with the terms of the bank deposit agreement. The condition of the agreement on the waiver of the right to receive the deposit on the first demand shall be invalid.
2. Under the bank deposit agreement of any kind, the bank shall be obliged to issue the deposit amount or part thereof on the first demand of the depositor, with the exception of deposits placed on other repayment terms provided for by the agreement (conditional deposit).
In cases when a fixed-term deposit is returned to the depositor on his/her/its demand before the expiry of the term, the amount of the deposit shall be repaid by the bank within 48 hours from the moment of the depositor’s demand and the interest thereon shall be paid in the amount corresponding to the amount of interest paid by the bank on the on-demand deposits, except as otherwise provided for by the agreement.
3. In cases when the depositor does not require the repayment of the amount of the fixed-term deposit after the expiration of the term or the amount of the deposit placed on other terms of repayment - upon occurrence of the circumstances stipulated in the agreement, the agreement shall be deemed extended on the terms of the on-demand deposit valid on the expiry date of the deposit term, except as otherwise provided for by the agreement.
4. The means and methods that the bank must use to ensure the repayment of deposits received by it shall be determined by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” and the agreement.
5. When entering into the bank deposit agreement, the bank shall be obliged to provide the depositor with information on ensuring the repayment of the deposit in accordance with the legislation of the Kyrgyz Republic.
Article 756. Placing of funds by third parties to the depositor’s account
If the bank deposit agreement does not provide for otherwise, the funds, transferred by third parties to the bank in the name of the depositor with specified data about the deposit account thereof, shall be credited to the deposit account. It is assumed that the depositor has expressed his/her/its consent to receive the funds from such parties by providing them with the necessary data on the deposit account.
Article 757. Contribution to the benefit of a third party
1. The deposit can be placed in the bank in the name of a certain third party. Such a person acquires the rights of the depositor from the moment he/she/it presents the first demand to the bank based on these rights, or expresses to the bank the intends to use such rights by another means, except as otherwise provided for by the bank deposit agreement.
Indication of the name of the citizen or the name of the legal entity in whose/which favor the deposit is placed shall be an essential condition for the relevant bank deposit agreement.
The bank deposit agreement in favor of a citizen, who died by the time of entering into the agreement, or a non-existent legal entity at this moment, shall be null and void.
2. The third party, in whose/which name the deposit is placed, shall acquires the rights of the depositor from the moment of receipt of money to his/her/its account, except as otherwise provided for by the bank deposit agreement.
3. In cases when a third party, in whose/which name the deposit is placed, refused from it, a person who has concluded the bank deposit agreement in the name of a third person shall be entitled to demand the deposit back or transfer it to his/her/its own name.
Article 758. Savings Book
1. At the request of the depositor, the bank shall be obliged to issue a personal savings book.
2. Placing funds to the deposit account and subsequent account activity shall be certified by the savings book. The data about the deposit indicated in the savings book shall be the basis for deposit settlements between the bank and the depositor.
3. The name and location of the bank or its relevant branch, the deposit account number, as well as all amounts of funds credited to the account, all amounts of funds written off from the account and the balance of cash on the account at the time of presentation of the savings book to the bank shall be indicated and certified by the bank in the savings book.
4. The issuance of a deposit, the payment of interest on it and the execution of instructions of the depositor on the transfer of funds from the deposit account to other persons shall be implemented by the bank upon presentation of a savings book.
5. If the personal savings book was lost or reduced to a state that is unfit for presentation, the bank, upon application of the depositor, shall issue a new savings book to him/her.
Article 759. Savings (deposit) certificate
1. A savings (deposit) certificate is a security that certifies the amount of the deposit placed with the bank and the rights of the depositor (holder of the certificate) to receive, upon expiration of the set term, the deposit amount and the interest specified in the certificate at the certificate issuing bank or at any branch of this bank.
2. Savings (deposit) certificates shall be personal.
3. In the event of early presentation of a savings (deposit) certificate for payment the bank shall repay the amount of the deposit and interest related to the on-demand deposits, unless the certificate specifies a different amount of interest.”;
10) in paragraph 1 of Article 760 the words “or other credit institution (hereinafter - the bank) shall undertake” shall be replaced with words “to which/whom such right is granted in accordance with a license issued under the established procedure, shall undertake”;
11) in the first subparagraph of paragraph 2, Article 762 the words “provided for by law and the banking rules established thereunder” shall be replaced by the words “of the banking legislation”;
12) in paragraph 1 of Article 763 the words “by the law, the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
13) in Article 764 the words “by the law, the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
14) in paragraph 2 of Article 766, the words “loan and” shall be deleted;
15) in Article 775:
“2. The bank shall be entitled to terminate unilaterally the bank account agreement with one calendar month prior notification of the client, if the amount of funds held on the client’s account is below the minimum amount provided for by the banking legislation of the Kyrgyz Republic or by the bank account agreement, or when there are no funds on the client’s account during the period specified by the agreement or the transactions are not carried out on the order of the client, as well as in the case provided for by law.” ;
b) Paragraph 4 shall be supplemented with the second subparagraph as follows:
“The bank shall notify the client at the last known address about the need to receive the balance of funds, and in the absence of the client, the balance of monetary funds shall be kept on the system accounting.”;
16) Chapter 37 shall be supplemented with Article 775-1 as follows:
“Article 775-1 Correspondent and other bank accounts
The norms of this chapter shall be applied to the correspondent and other banks’ accounts, except as otherwise provided for by the banking legislation of the Kyrgyz Republic.”;
17) in Chapter 38:
a) § 1 shall be amended as follows:
Article 775-2. Arrangement of settlements
1. The banks shall make settlements in the forms established by this Code and in the manner prescribed by the payment system of the Kyrgyz Republic, as well as in the forms adopted in international banking practice, if this does not contradict with the banking legislation of the Kyrgyz Republic.
2. The National Bank shall issue relevant regulatory legal acts regulating settlement operations of the banks and other participants in the payment system.
Article 776. Cash and non-cash settlements
1. Settlements in the territory of the Kyrgyz Republic can be made in cash or by bank transfer.
2. Settlements between the legal entities, as well as settlements with the participation of the citizens associated with implementation of their entrepreneurial activities, are, as a rule, made on a non-cash basis.
3. Non-cash payments shall be made through the banks where the accounts of the persons involved in settlements are opened, except as otherwise stemmed from the banking legislation of the Kyrgyz Republic and not conditioned by the form of settlements used.
Article 777. Forms of cashless settlements
1. settlements by payment orders, by letter of credit, by collection, by checks, as well as settlements in other forms stipulated by the banking legislation of the Kyrgyz Republic, regulatory legal acts of the National Bank of the Kyrgyz Republic and customs of business circulation used in banking practice are allowed in making cashless payments.
2. The parties to the agreement shall be entitled to elect and provide for in the agreement any form of settlements specified in part 1 of this article.”;
18) in paragraph 2 of Article 778 the words “by the law, as well as the banking rules established thereunder” shall be replaced by the words “by the banking legislation of the Kyrgyz Republic, regulatory legal acts of the National Bank of the Kyrgyz Republic”;
19) in Article 779:
a) in paragraph 1 the words “by the law and the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
b) in paragraph 2 the words “by the law and the banking rules established thereunder” and the words “by the law, the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
20) in paragraph 3 of Article 780 the words “by the law, the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
21) Article 782 shall be amended as follows:
“Article 782. General provisions
1. A letter of credit is a conditional monetary obligation of a bank issued by it on behalf of a client in favor of his/her/its counterparty under the agreement whereby the bank that opened the letter of credit (issuing bank) makes payment to the supplier or authorizes another bank to make such payments, provided that the documents are provided by it, such documents shall be provided for in the letter of credit, and when other conditions of the letter of credit are fulfilled.
In specified cases, payment by the executing bank to the beneficiary can be guaranteed by another bank (confirming bank). When the executing bank makes payments to the beneficiary (the person designated as the “beneficiary”) in accordance with a letter of credit, the issuing bank has the obligation to make the appropriate payment (plus the remuneration of the executing bank) to the executing bank. If the executing bank does not pay in accordance with its obligations, the confirming bank has an obligation to make payment to the beneficiary (the person designated by the “receiver”), provided that the executing bank has submitted the required and duly executed documents.
2. The Uniform Rules and Customs for Documentary Letters of Credit issued by the International Chamber of Commerce are also applied in the Kyrgyz Republic in the manner prescribed by the Law of the Kyrgyz Republic “On letters of credit”.
3. In case of opening a covered (deposited) letter of credit, the issuing bank, upon opening thereof, shall transfer the own funds of the payer or the credit provided to it to the executing bank for the entire duration of the issuing bank’s obligation.
In the case of opening an uncovered letter of credit, the issuing bank gives the executing bank the right to debit the entire amount of the letter of credit from the account of the issuing bank, which is maintained in the executing bank.”;
22) in the second subparagraph of paragraph 2, Article 789 the words “by the law, the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
23) in paragraph 4 of Article 792 the words “by other laws and the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
24) in paragraph 2 of Article 793 the words “by the law and the banking rules established thereunder” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
25) in paragraph 2 of Article 794 the word “by the legislation” shall be replaced by the words “by the regulatory legal acts of the National Bank of the Kyrgyz Republic”;
26) in subparagraph 1 of paragraph 1, Article 799 the word “by the law” shall be replaced by the words “ by the regulatory legal acts of the Kyrgyz Republic”.
2. The following amendments shall be introduced to the Civil Procedure Code of the Kyrgyz Republic (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2000, No. 3, Article 158):
1) the ninth subparagraph of paragraph 3, Article 26 after the word “(of insolvency)” shall be supplemented with the words “, on forced liquidation of the banks”;
2) Article 141 shall be supplemented with paragraph 2-1 of the following content:
“2-1 In cases of making the decision by the National Bank of the Kyrgyz Republic provided for by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” on revoking a bank license, introducing the Temporary Administration regime and carrying out measures to restructure the bank, measures to secure a claim on appeal of such decisions by a court shall not be applied.”;
3) in paragraph 1 of Article 361 the words “bankruptcy with respect to the debtor where the special administration procedure was applied and as a result the debtor was liquidated” shall be replaced with the words “bankruptcy with respect to the debtor/forced liquidation of the bank where the procedure of special administration/ forced liquidation was used, as a result of which the debtor/bank was liquidated;
4) subparagraph 11 of paragraph 1, Article 383 after the word “(of insolvency)” shall be supplemented with the words “, on forced liquidation of the banks”;
5) paragraph 2 of Article 384 after the word “(of insolvency)” shall be supplemented with the words “, on forced liquidation of the banks”;
6) Article 385, after the words “or” and “by the bankruptcy legislation”, shall be supplemented respectively with the words “on forced liquidation” and “and by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
7) the second subparagraph of Article 409 after the words “(of insolvency) of the debtor” shall be supplemented with the words “/ forced liquidation of the bank”.
3. The following amendments shall be introduced into the Labor Code of the Kyrgyz Republic (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2006, No. 4, Article 392):
1) part 1 of Article 76 after the word “(change)” shall be supplemented with the words “or for the relevant period”;
2) subparagraph “e” of paragraph 6, part 1 of Article 83 after the word “official”, shall be supplemented with the word “of the banking,”.
4. The following amendment shall be introduced into the Criminal Procedure Code of the Kyrgyz Republic (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1999, No. 10, art.442):
part 1 of Article 254 after the word “of military,” shall be supplemented with the words “of banking and”.
5. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On joint-stock companies” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2003, No. 6, art.240):
a) in paragraph 4 the word “banking,” shall be deleted;
b) the article shall be supplemented with paragraph 5 of the following content:
“5. The specific features of establishment and operation of the joint stock companies engaged in banking or individual banking operations are regulated by this Law insofar as they do not conflict with the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity.”;
2) in the first subparagraph of paragraph 1, Article 66 the words “, excluding the company involved in the banking activity” shall be deleted.
6. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On bankruptcy (insolvency)” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1997, No. 11, Article 577):
subparagraph 4 of clause 3 shall be amended as follows:
“4) banks and other financial institutions, except as otherwise expressly established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity.”;
2) the tenth-twelfth subparagraphs of Article 2 shall be declared invalid;
3) the second subparagraph of paragraph 1, Article 29 shall be declared invalid;
4) paragraph 8 of Article 55 shall be declared invalid.
7. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On auditing activity” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2002, No. 10, art.435):
1) Article 1-1 shall be amended as follows:
“Article 1-1: Audit of banks
Audit of banks and non-banking financial institutions (hereinafter - the bank) shall be carried out in accordance with the requirements of the banking legislation of the Kyrgyz Republic and the international audit standards.
The norms of this Law shall be applied to the audit of the banks in part that does not contradict with the banking legislation of the Kyrgyz Republic.”;
2) part 3 of Article 2 shall be declared invalid.
8. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On state registration of legal entities, branches (representative offices)” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 2, Article 130):
1) part 2 of Article 8 shall be supplemented with the second paragraph as follows:
“When establishing a “transitional” bank, the procedure and terms of its state registration shall be determined by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.”;
2) part 2 of Article 12 after the word “decisions”, shall be supplemented with the words “, and in respect of the financial institutions - from the moment of obtaining the written consent of the National Bank”.
9. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On protection of bank deposits” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 5, article 453):
the nineteenth and twentieth subparagraphs shall be amended as follows:
“Guarantee case is the beginning of the procedure for forced liquidation of the bank in accordance with the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
Persons related to the bank - as defined in the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.”;
2) part 4 of Article 4 after the word “Agency” shall be supplemented with the words “together with the liquidator”;
3) in Article 5:
a) Clause 1 shall be amended as follows:
“1) deposits of the persons related to the bank;”;
b) paragraph 4 shall be amended as follows:
“4) deposits for which there are restrictions or seizures in accordance with the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”;”;
4) in Article 6:
a) in part 1:
in the first subparagraph the word “special administrator” shall be replaced with the word “liquidator”;
In the second subparagraph the word “Special Administrator” shall be replaced with the word “Liquidator”;
b) in part 2 the words “special administrator” shall be replaced with the word “liquidator”;
5) paragraph 3 of part 6, Article 7 shall be amended as follows:
“3) during the last 6 months prior to the date of the occurrence of the guarantee case, the measures of influence provided for by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” were not applied to it; 6) in Article 8:
words “or bankruptcy” shall be excluded;
the words “On closing-down, liquidation and bankruptcy of the banks” shall be replaced with the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
“3. Requirements of the Agency on the amounts of guaranteed deposits are satisfied in accordance with the order established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.”;
c) in part 4 the words “On closing-down, liquidation and bankruptcy of the banks” shall be replaced with the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
7) in Article 10:
in paragraph 1 the words “by the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” and “On banks and banking activity in the Kyrgyz Republic” shall be replaced by the words “the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
paragraph 4 shall be declared invalid;
8) in paragraph 9 of Article 17 the words “ of the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” , “On banks and banking activity in the Kyrgyz Republic” shall be replaced by the words “the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
9) in Article 20:
a) part 2 shall be amended as follows:
“2. The bank participating in the deposit protection system shall comply with the standards and fulfill the mandatory requirements established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
The National Bank establishes special conditions and terms for fulfillment of the standards and requirements stipulated by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” for the “transitional” banks.”;
b) in the first subparagraph part 5 the words “of the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”, “On banks and banking activity in the Kyrgyz Republic” shall be replaced by the words “Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
10) in Article 25:
a) part 2 shall be declared invalid;
“3. In case of violation of the requirements of this Law by the bank participating in the deposit protection system, the National Bank shall be entitled to apply to it any measures of influence provided for by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity.”;
c) parts 4-7 shall be declared invalid;
d) part 9 shall be declared invalid;
11) part 6 of Article 26 shall be amended as follows:
“6. The deposits of the banks participating in the deposit protection system entered into the Deposit Protection Fund are the property thereof, they are shall not be refundable and are used exclusively in accordance with this Law.”;
12) part 1 of Article 27 shall be amended as follows:
“1. Newly established banks, with the exception of a ”transitional” bank, must pay an entrance fee to the Deposit Protection Fund in the amount of one percent of the minimum authorized capital requirement for newly established banks. The entry fee shall be paid in the period after receiving permission from the National Bank and before the license is issued. The “transitional” bank, established during the restructuring of the bank, shall be exempted from payment of the entrance fee.”;
13) part 3 of Article 28 shall be declared invalid;
14) in part 4 of Article 31 the words “On the National Bank of the Kyrgyz Republic” shall be replaced with the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
15) in Article 42:
a) in paragraph 4 of part 2:
in subparagraph “b” the word “conservator” shall be replaced by the words “of the Temporary Administrator”;
in subparagraph “c” the words “of the suspension or” shall be deleted;
subparagraph “d” shall be declared invalid;
b) in paragraph 2 of part 6 the words “of the preventive measures and sanctions” shall be replaced with the words “measures of influence”;
16) part 3 of Article 44 shall be declared invalid.
10. The following amendments shall be introduced to the Law of the Kyrgyz Republic “On collateral” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2005, No. 6, Article 377):
paragraph 1 of Article 2 shall be amended as follows:
“1. Legislation of the Kyrgyz Republic on collateral consists of the Civil Code of the Kyrgyz Republic, this Law and other regulatory legal acts of the Kyrgyz Republic.
The specific features of the legal relationship with respect to the collateral shall be regulated by land, banking and bankruptcy laws, except as otherwise provided for in the Civil Code of the Kyrgyz Republic.”
11. The following amendment shall be introduced into the Law of the Kyrgyz Republic “On enforcement proceedings and status of legal executives in the Kyrgyz Republic” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2002, No. 4, article 160):
subparagraph 10 of paragraph 1, Article 12 shall be declared invalid.
12. The following amendment shall be introduced into the Law of the Kyrgyz Republic “On internal audit” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 1, Article 25):
Part 1 of Article 2 shall be supplemented with the second subparagraph as follows:
“This Law shall not be applied to the National Bank of the Kyrgyz Republic.”
13. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On advertising” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1999, No. 4, art. 195):
in Article 17:
the words “In production” shall be replaced by the words “1. In production”;
the article shall be supplemented with part 2 as follows:
“2. Other features of advertising the financial, banking, insurance, investment and other services, as well as the securities may be determined by other regulatory legal acts of the Kyrgyz Republic that do not contradict this Law.”
14. the following amendments shall be introduced into the Law of the Kyrgyz Republic “On the Accounts Chamber of the Kyrgyz Republic” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2004, No. 12, Article 511):
1) in paragraph 5 of part 1, Article 8 the words “On bank secrecy” shall be replaced by the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
2) Article 43 shall be supplemented with part 3 as follows:
“The audit of the effectiveness of the National Bank of the Kyrgyz Republic shall be carried out taking into account the goals and objectives of its activities, the status of independence and confidentiality of information established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”, and in accordance with international audit standards of the central banks.”.
15. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On investments in the Kyrgyz Republic” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2003, No. 7, Article 255):
1) in paragraph 1 of Article 8 the words “On operations in foreign currency” shall be replaced by the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
2) in part 1 of Article 21 the words “The Law of the Kyrgyz Republic “On state registration of legal entities of the Kyrgyz Republic” shall be replaced by the words “by the legislation on state registration of legal entities, branches (representative offices)”. 16. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On the maximum number of staff and on the terms of remuneration to the state and municipal employees of the Kyrgyz Republic” (Erkin Too Newspaper dated June 28, 2011 No. 50):
in part 2 of Article 3 the words “of the National Bank of the Kyrgyz Republic,” shall be deleted.
17. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On microfinance organizations in the Kyrgyz Republic” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2002, No. 9, art. 412):
1) paragraph 1 of Article 1 shall be supplemented with the third paragraph as follows:
“The microfinance organization shall carry out its activities in accordance with this Law, the regulatory legal acts of the National Bank, and taking into account the peculiarities of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity.”;
2) in paragraph 1 of Article 5 the words “On banks and banking activity in the Kyrgyz Republic” shall be replaced by the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
a) clause 4 shall be amended as follows:
“4. Forced liquidation of a microfinance company with the right to attract deposits shall be carried out in accordance with the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
A microfinance company that does not attract deposits, a microcredit company and a microcredit agency shall be liquidated in accordance with the Law of the Kyrgyz Republic “On bankruptcy (insolvency).”;
b) paragraph 5 shall be declared invalid;
4) in Article 15 the words “On banks and banking activity in the Kyrgyz Republic” shall be replaced by the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
5) in Article 27:
a) in paragraph 1 the words “On the National Bank of the Kyrgyz Republic” shall be replaced by the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
b) clause 3 shall be declared invalid;
6) in Article 28:
a) the name of the article shall be amended as follows:
“Article 28. Powers of the National Bank”;
“5) to apply the measures of influence provided for by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”, this Law and regulatory legal acts of the National Bank;”;
c) paragraph 9 shall be amended as follows:
“9) to exercise other powers in accordance with this Law and the banking legislation of the Kyrgyz Republic.”;
7) paragraph 4 of Article 29 shall be supplemented with the third subparagraph as follows:
“The requirements for consolidated supervision of the microfinance companies licensed by the National Bank shall be determined by the banking legislation of the Kyrgyz Republic.”;
8) in subparagraph 7 of paragraph 2, Article 30 the words “On banks and banking activity in the Kyrgyz Republic” shall be replaced by the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
9) in the first subparagraph of paragraph 9, Article 35 the word “to verify” shall be replaced by the words “to exercise external supervision and inspections”;
10) paragraph 2 of Article 35-3 shall be amended as follows:
“2. For violation of the rights and legitimate interests of consumers provided for by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” and this Law, the National Bank shall be entitled to apply the measures of influence provided for by the banking legislation of the Kyrgyz Republic to the microfinance organization.”
18. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On credit unions” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2000, No. 2, Article 108):
1) the second subparagraph of Article 1 shall be amended as follows:
“The activity of the credit unions shall be regulated by this Law and the banking legislation of the Kyrgyz Republic.”;
2) in paragraph 9 of Article 33 the words “legislation on closing-down, liquidation and bankruptcy of the banks.” shall be replaced with the words “by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity.”.
19. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On internal affairs bodies of the Kyrgyz Republic” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1994, No. 3, Article 76):
in paragraph 19 of Article 9 the words “without hindrance and without compensation” shall be replaced by the words “in accordance with the procedure established by law”.
20. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On arms” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1999, No. 11, art.448):
part 1 of Article 5, after the words “paramilitary agencies of the Kyrgyz Republic” shall be supplemented with the words “and the National Bank of the Kyrgyz Republic”.
21. The following amendments shall be introduced into the Law of the Kyrgyz Republic “On the State Development Bank of the Kyrgyz Republic” (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2012, No. 7, Article 2772):
1) part 2 of Article 2 shall be declared invalid;
2) part 1 of Article 7 shall be amended as follows:
“1. The National Bank of the Kyrgyz Republic supervises and regulates the activities of the Bank in accordance with the banking legislation of the Kyrgyz Republic, with the features established by this Law.” The Bank shall not obtain a license for the right to conduct banking operations.”;
3) in part 5 of Article 21 the words “On banks and banking activity in the Kyrgyz Republic” shall be replaced with the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”;
4) in part 3 of Article 22 the words “On banks and banking activity in the Kyrgyz Republic” shall be replaced with the words “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
Shall be declared invalid:
- The Law of the Kyrgyz Republic “On transactions in foreign currency” No. 6-I dated July 5, 1995 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1995, No. 7, art.252);
- The Resolution of the Jogorku Kenesh of the Kyrgyz Republic “On bringing into force the Law of the Kyrgyz Republic “On foreign currency transactions” No. 7-I dated July 5, 1995 (Svobodnye Gory Newspaper No. 44 dated July 15, 1995 and Erkin Too Newspaper No. 45dated 19 July 1995);
- The Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 59 dated July 29, 1997 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1997, No. 10, art. 470);
- The Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 60 dated July 29, 1997 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 1997, No. 10, art. 471);
- The Law of the Kyrgyz Republic “On bank secrecy” No. 122 dated July 23, 2002 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2002, No. 9, art.410);
- The Law of the Kyrgyz Republic “On amendments and additions to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 63 dated March 26, 2003 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2003, No. 6, art.239); - The Law of the Kyrgyz Republic “On amendments and additions to certain legislative acts of the Kyrgyz Republic” No. 235 dated December 18, 2003 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2004, No. 3, Article 130);
- The Law of the Kyrgyz Republic “On closing-down, liquidation and bankruptcy of the banks” No. 14 dated 15 February 2004 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2004, No. 5, Article 235);
- Article 1 of the Law of the Kyrgyz Republic “On introduction of amendments and additions to some legislative acts of the Kyrgyz Republic” No. 192 dated December 15, 2004 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2005, No. 3, Article 179);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 46 dated March 10, 2005 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2005, No. 5, art. 321);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the closing-down, liquidation and bankruptcy of the banks” No. 47 dated March 10, 2005 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2005, No. 5, art. 322);
- The Law of the Kyrgyz Republic “On introduction amendments and additions to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 158 dated 1 December 2005 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2005, No. 12/1166, art. 1012);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 22 dated 27 January 2006 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2006, No. 1, Article 24);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On closing-down, liquidation and bankruptcy of the banks” No. 176 dated August 21, 2006 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2006, No. 10, art.852);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On closing-down, liquidation and bankruptcy of the banks” No. 220 dated December 28, 2006 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2006, No. 12, art. 1105);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 17 dated February 12, 2007 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2007, No. 2, art.143);
- The Law of the Kyrgyz Republic “On introduction of amendments to certain legislative acts of the Kyrgyz Republic” No. 75 dated May 30, 2007 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2007, No. 5, art. 466);
- Article 2 of the Law of the Kyrgyz Republic “On introduction of amendments and additions to the Laws of the Kyrgyz Republic “On the Accounts Chamber of the Kyrgyz Republic”, “On the National Bank of the Kyrgyz Republic”, “On the Prosecutor's Office of the Kyrgyz Republic” and “On the Central Commission for Elections and Referendums of the Kyrgyz Republic” No. 77 dated June 4, 2007, (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2007, No. 6, art.512);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 143 dated August 9, 2007 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2007, No. 9, art.712);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to certain legislative acts of the Kyrgyz Republic” No. 87 dated May 16, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 5, art. 462);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 88 dated May 16, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 5, art. 463);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 90 dated May 19, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 5, art. 465);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 154 dated July 18, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 6/2, art.618);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On bank secrecy” No. 216 dated October 17, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 8, Article 908);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 217 dated October 17, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 8, Article 909);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 224 dated October 17, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 8, art.916);
- Parts 15 and 20 of Article 9 of the Law of the Kyrgyz Republic “On bringing into force the Tax Code of the Kyrgyz Republic” No. 231 dated October 17, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 8, art.923);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 236 dated November 3, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 9, art.
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 243 dated November 20, 2008 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2008, No. 9, art. 1016);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 21 dated January 23, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 1, Article 21);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 93 dated March 28, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 3, Article 224);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 94 dated March 28, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 3, art.225);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 95 dated March 28, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 3, art.226);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 136 dated April 27, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 4, Article 358);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On bank secrecy” No. 160 dated May 19, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 5, art. 477);
- The Law of the Kyrgyz Republic “On introduction of amendments and addition to the Law of the Kyrgyz Republic “On transactions in foreign currency” No. 161 dated May 19, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 5, Article 478);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 162 dated May 19, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 5, article 479);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 167 dated May 26, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 5, art. 844);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On banks and banking activity in the Kyrgyz Republic” No. 172 dated May 26, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009, No. 5, art.489);
- Article 2 of the Law of the Kyrgyz Republic “On introduction of amendments and additions to the Laws of the Kyrgyz Republic “On bankruptcy (insolvency)” and “On closing-down, liquidation and bankruptcy of the banks” No. 247 dated July 24, 2009 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2009 , No. 7, art.757);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 30 dated February 16, 2010 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2010, No. 2, Article 77);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 49 dated March 15, 2010 (Erkin Too Newspaper No. 19-20dated March 16, 2010);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 11 dated April 11, 2011 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2011, No. 4, art.247);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 21 dated May 12, 2011 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2011, No. 5, art.380);
- Article 3 of the Law of the Kyrgyz Republic “On introduction of amendments and additions to certain legislative acts of the Kyrgyz Republic” No. 60 dated April 26, 2013 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2013, No. 4, art.330);
- Article 3 of the Law of the Kyrgyz Republic “On introduction of amendments to certain legislative acts of the Kyrgyz Republic” No. 178 dated July 30, 2013 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2013, No. 7, art.935);
- The Law of the Kyrgyz Republic “On introduction of amendments and additions to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 143 dated July 18, 2014 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2014, No. 7, Article 680);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 39 dated February 25, 2015 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2015, No. 2, art.119);
- The Law of the Kyrgyz Republic “On introduction of amendments to the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” No. 189 of July 24, 2015 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2015, No. 7, Article 992);
- Article 2 of the Law of the Kyrgyz Republic “On introduction of amendments to certain legislative acts of the Kyrgyz Republic” No. 199 dated July 28, 2015 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2015, No. 7, art. 1002);
- Article 2 of the Law of the Kyrgyz Republic “On introduction of amendments and additions to certain legislative acts of the Kyrgyz Republic (to the Laws of the Kyrgyz Republic “On the licensing and authorization system in the Kyrgyz Republic”, “On bank secrecy”) No. 91 dated June 28, 2016 (Vedomosti Jogorku Kenesha Kyrgyzskoi Respubliki (Statements of the Jogorku Kenesh of the Kyrgyz Republic), 2016, No. 6, art.540).
The Government of the Kyrgyz Republic and the National Bank of the Kyrgyz Republic within six months from the date of the official publication of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” shall bring their regulatory legal acts into compliance with the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” and this Law.
The banks, financial and credit organizations and other legal entities supervised by the National Bank of the Kyrgyz Republic shall be obliged to bring their activities in compliance with the requirements of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity” and this Law within six months from the date of entering into force thereof.
This Law shall enter into force upon expiration of six months after the official publication of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic, banks and banking activity”.
Published in Erkin Too Newspaper N 113-114 dated December 21, 2016
А. Аtambaev
Approved by the Jogorku Kenesh of the Kyrgyz Republic