Approved by Board of the Central bank of the Republic of Uzbekistan of March 26, 1996, No. 203

Temporary procedure for financial accounting on transactions with state treasury bills in commercial banks

This Temporary procedure (further in the text "Procedure") is developed according to the Law "About the Central Bank of the Republic of Uzbekistan" and the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 119 of 26.03.96 and establishes features of conducting financial accounting in commercial banks on transactions with state treasury bills of the Republic of Uzbekistan (further in the text of "Bond"). Financial accounting in banks on transactions with Bonds is kept according to the rules established by the Central bank of the Republic of Uzbekistan (further in the text Central bank) for accounting of transactions of banks with securities and this Procedure.

1. Basic concepts

In sense of this Procedure:

- "commercial transactions with Bonds" are understood as purchase and resale of Bonds by commercial banks on its own behalf, at own expense and on own initiative,

- "broker transactions with Bonds" are understood as purchase and sale of Bonds by banks for the account and at the request of the clients based on commission agreements or the order with them ("broker agreements").

2. Accounting of the means which arrived from clients on broker transactions with bonds

2.1. Accounting of the means which arrived from clients and due to clients on broker transactions of banks is performed on the balance sheet account 22608 "Means of Clients on Transactions with Securities" on separate personal account "Means of clients on broker transactions with securities".

On the credit of account 22608 means are considered:

- the acquisitions by bank of securities listed by clients to bank under broker contracts with the purpose at the third parties, in payment of future commission fee under broker agreements - in correspondence with account 20200 "On-demand deposits" (*) (if the client is served in this bank) or account 10301 "To obtaining from correspondent account of TsBRU - "Nostro" (in case of money transfer from customer account in other bank),

- arrived from resale of securities by bank based on broker agreements - in correspondence with account 10301 "To obtaining from correspondent account of TsBRU - "Nostro".

On the debit of account 22608 means are considered:

- spent by bank for security purchase at the request of clients - in correspondence with account 10301 "To obtaining from correspondent account of TsBRU - "Nostro";

- returned to clients according to unexecuted broker purchase agreements of securities - in correspondence with account 20200 "On-demand deposits" (*) (if the client is served in this bank) or account 10301 "To obtaining from correspondent account of TsBRU - "Nostro" (in case of money transfer into the customer account in other bank);

- listed to clients according to the performed broker sales agreements of securities - in correspondence with account 20200 "On-demand deposits" (*) (if the client is served in this bank) or account 10301 "To obtaining from correspondent account of TsBRU - "Nostro" (in case of money transfer into the customer account in other bank);

- collected by bank as commission fee for execution of broker agreements - in correspondence with account 45209 "The income from investing intermediary activities of bank with securities".

The bank keeps analytics according to balance sheet account 22608 on personal accounts of clients.

2.2. The bank carries out the broker contract for acquisition of securities only after deposition of means of the client under such agreement on balance sheet account 22608.

In case of deposition of means the bank makes posting:

a) if the client has the account in this bank:

Dt account 20200 "On-demand deposits" (*)

Kt account 22608 "Means of clients on transactions with securities"",

b) if the client transfers funds from the account in other bank:

Dt account 10301 "To obtaining from correspondent account of TsBRU "Nostro",

Kt account 22608 "Means of clients on transactions with securities"".

The basis for posting is the payment order which is drawn up by the client.

2.3. In case of non-execution of the broker order on acquisition of securities and return of means to the client the bank performs postings, the return to those which are specified in Item 2.2.

2.4. After execution of the broker order on security sale the bank enlists the means which are due to the client. At the same time posting is made:

Dt account 22608 "Means of clients on transactions with securities",

Kt account 20200 "On-demand deposits" (*) (or account 10301 "To obtaining from correspondent account of TsBRU - "Nostro" - if means are subject to transfer into account of the client in other bank).

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