of April 12, 2019 No. 45
About guarantee funds in the Kyrgyz Republic
Accepted by Jogorku Kenesh of the Kyrgyz Republic on March 7, 2019
This Law determines legal and economic basis of creation and activities of guarantee funds in the Kyrgyz Republic.
1. In this Law the following concepts and terms are used:
1) guarantee fund - the legal entity created in the form of joint-stock company, who underwent the procedure of accounting registration in National Bank of the Kyrgyz Republic (further - National Bank) and performing warranty activities;
2) the client - the subject of entrepreneurship and the participant of the state housing programmes which part of obligations is provided with guarantee under the contract of financing with financial credit institution;
3) the subject of entrepreneurship - the physical person who is engaged in business activity without formation of legal entity and the legal entity determined according to the tax legislation of the Kyrgyz Republic;
4) the participant of the state housing programmes - the citizen of the Kyrgyz Republic who submitted the application and last selection for receipt of housing financing within implementation of the state housing programmes approved by the Cabinet of Ministers of the Kyrgyz Republic;
5) obligations of the client - the obligations which arose within the financing received from financial credit institution and conforming to requirements of this Law;
6) guarantee - the obligation of guarantee fund to financial credit institution to bear responsibility for execution of part of obligations on principal debt of the client under agreements of financing within the amount of the provided guarantee;
7) warranty activities - the activities promoting increase in availability of financing to clients and directed to decrease in part of credit risks of financial credit institutions by provision of guarantees under agreements and/or agreements of financing of clients and other warranty tools;
8) policy of provision of guarantees - the document approved by authorized body of guarantee fund, regulating the procedure and conditions of provision of guarantees, types of warranty tools, the principles of provision of guarantees, criteria and requirements of selection of obligations of clients, and also conditions of depreciation of guarantee and responsibility of the parties conforming to requirements of regulatory legal acts of National Bank;
9) warranty tools - set of various forms and warranty types used for providing obligations of clients under agreements of financing;
10) financial credit institutions - banks, non-bank financial credit institutions which based on the licenses (certificates) of National Bank granted by it have the right to perform banking activities, and also the international organizations which are performing crediting (financing) and signed the agreement on cooperation with guarantee fund;
11) financing - provision by financial credit institutions of mortgage/commercial credits and their substitutes, and also the transactions/transactions performed according to the Islamic principles of financing;
12) coefficient of the animator - the relation of possible excess of amount of warranty portfolio to the size of equity of guarantee fund established by National Bank;
13) warranty portfolio - the total volume of obligations of guarantee fund under contracts and/or agreements of financing of clients for certain date;
14) the recourse requirement - the right of guarantee fund to demand from the client of compensation of the amount paid to financial credit institution in obligation fulfillment under the agreement of guarantee;
15) participants of guarantee funds are founders and shareholders of guarantee funds.
2. Other terms and determinations used in this Law are understood according to their commonly accepted value in the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity", the legislation of the Kyrgyz Republic and in the international practice if other is not determined by this Law.
The guarantee fund shall use only that name which is provided in articles of organization and to use in the name of the word "Guarantee fund".
Guarantee funds do not answer for obligations the Kyrgyz Republic, as well as the Kyrgyz Republic does not answer for obligations guarantee funds, except as specified, when the parties voluntarily assume such obligations.
Guarantee funds do not answer for obligations National Bank. The National Bank does not answer for obligations guarantee funds.
1. Guarantee funds can be created by physical persons and legal entities in case of observance of requirements of this Law.
Cannot be participants of guarantee funds:
1) the physical persons and legal entities living and/or registered in the territory of offshore zones or having as members of the affiliates registered in offshore zones which list is established by National Bank.
Affiliates are recognized:
considerable members of the legal entity;
legal entities in whom the same legal entity is considerable participant;
2) physical persons and legal entities concerning which there are international sanctions accepted by the UN Security Council and also the physical persons and legal entities registered in the states concerning which there are international sanctions accepted by the UN Security Council, forbidding legal relationship with specified persons and obligatory for the Kyrgyz Republic;
3) physical persons and legal entities which in accordance with the established procedure did not provide data on the activities, financial condition, the list of participants and any other data and documents allowing them to identify and study authentically members of the legal entity, including beneficial owners, or provided such data which do not allow to identify and study authentically members of the legal entity, including beneficial owners and also if they did not confirm the faultless goodwill according to the legislation of the Kyrgyz Republic on National Bank, banks and banking activity;
4) physical persons and legal entities which in the procedure established by National Bank did not confirm legality of source of origin of the money allocated for share acquisition of guarantee fund or equity participation of guarantee fund;
5) physical persons and legal entities concerning which there are prohibitions or restrictions according to the legislation of the Kyrgyz Republic or the legislation of foreign state.
2. For activities implementation guarantee funds shall undergo the procedure of accounting registration in National Bank. The procedure for passing of accounting registration, the basis for refusal in accounting registration of guarantee funds are established by regulatory legal acts of National Bank.
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
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