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LAW OF UKRAINE

of October 3, 2019 No. 157-IX

About lease of the state-owned and municipal property

This Law regulates:

the legal, economic and organizational relations connected with transfer to lease of the property which is in the state-owned and municipal property, the property belonging to the Autonomous Republic of Crimea and also transfer of the right to operation of such property;

the property relations between lessors and lessees of rather economic use of the property which is in the state-owned and municipal property, the property belonging to the Autonomous Republic of Crimea.

Operation of this Law does not extend to the relations of concession of the state-owned and municipal property.

Article 1. Determinations of terms

1. In this Law the terms below are used in such value:

1) the administrator of electronic trading system - the legal entity determined by the Cabinet of Ministers of Ukraine by the offer of the central executive body which provides forming also realizes state policy in the sphere of realization of property (property rights, other assets) or the rights to them on the competitive beginnings in the form of auctions, including electronic auctions, and exercises control of its realization. The administrator of electronic trading system is responsible for ensuring functioning of electronic trading system;

2) auction - method of transfer to lease of the state-owned and municipal property to person who offered the greatest rent which is carried out electronically;

3) the guarantee fee - cash amount in the amount of, determined by the Procedure for cession of property in lease approved by the Cabinet of Ministers of Ukraine which is brought by the potential lessee of object of lease for ensuring accomplishment of its obligation on participation in auction in the form of money into the account of the operator of an electronic trading platform or in the form of the irrevocable bank guarantee in the cases provided by the Procedure for cession of property in lease approved by the Cabinet of Ministers of Ukraine;

4) the electronic trading system (ETS) - two-level information and telecommunication system which includes the central database and electronic platforms which interact with the central database via the interface of programming of appendices of such central database. ETS provides possibility of creation, placement, the publication and exchange of information and the documents in electronic form necessary for holding the auction electronically;

5) electronic platform - the hardware and software which functions on the Internet is connected to the central database and provides to the lessor, potential lessees, participants opportunity to use the ETS services with automatic exchange of information concerning process of holding electronic auctions;

6) single property complex of the state or municipal company, its structural division (single property complex) - all types of property intended for activities of the company, its structural division, the building, construction, the equipment, stock, raw materials, products, rights to claim, debts, and also the right to trademark or other designations and the rights including the rights to the parcels of land;

7) the commission on consideration of claims and preparation of offers (further - the Commission) - permanent collegiate organ which is created for the purpose of consideration of claims and offers concerning the organization and holding auctions, including electronic auctions (open tenderings (auctions), decision making by results of consideration of such claims and offers by the central executive body which provides forming and realizes state policy in the sphere of realization of property (property rights, other assets) or the rights to them on the competitive beginnings in the form of auctions, including electronic auctions, and exercises control of its realization;

8) non-profit organizations - not entrepreneurial societies, public associations, the charitable, creative unions;

9) the operator of an electronic trading platform - the legal entity who has the right to use electronic platform and acts according to the agreement signed with the ETS administrator;

10) lease - the corporeal right to property according to which the lessor transfers or shall transfer to the lessee property to use for a fee for certain term;

11) the lessee - physical person or legal entity which based on the lease agreement takes property in use for a fee for certain term;

12) the lessor - the legal entity who based on the lease agreement gives property to use for a fee for certain term;

13) List of the first type - The list of objects on which the decision on transfer to lease at auction is made;

14) List of the second type - The list of objects on which the decision on transfer to lease without holding the auction is made;

15) Lists - List of the first type and the second type;

16) the potential lessee - the physical person or legal entity which showed willingness to accept property in lease according to the procedure, provided by this Law;

17) the registration fee - cash amount in the amount of 0,1 of the minimum wage operating as of January 1 of the current year which is brought by the potential lessee into the corresponding account of the operator of an electronic trading platform for registration of a statement on participation in auction. The registration fee does not return to the potential lessee, except the cases determined by the Cabinet of Ministers of Ukraine;

18) the starting rent - the payment for use of property calculated according to this Law which is specified in the announcement of cession of property in lease;

19) authorized body of management - body which sphere of management the asset holder treats;

20) the central database - set technical and software as a part of interfaces of programming of appendices, modules of the auctions, auxiliary program services and databases providing possibility of holding procedure of electronic auction also guarantee equal information access to participants of electronic auction. The current used version of program code of all components of the central database is open and public.

The term "control" is used in this Law in the value given in the Law of Ukraine "About joint-stock companies", the term "final beneficial owner (controller)" - in the value given in the Law of Ukraine "About prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction", the term "connected persons" - in the value given in the Tax code of Ukraine.

Other terms are used in the values given in the laws of Ukraine.

Article 2. The legal basis of use of state-owned property, property which belongs to the Autonomous Republic of Crimea or is in municipal property, the purpose and the principles of lease

1. The legislation of Ukraine on lease of the state-owned and municipal property, property belonging to the Autonomous Republic of Crimea consists of this Law, other legal acts.

2. Transfer to lease of the property which is in municipal property is performed by local government bodies according to requirements of this Law.

3. Provisions of this Law extend also to agreements of storage, except agreements of public storage if the storage location of property of the third party is individually certain real estate of the state-owned or municipal property.

4. Main objective of lease is acceleration of economic growth, attraction of foreign and internal investments, strengthening of financial capability of the companies of the state-owned or municipal property.

5. Lease is performed on the basis of the following principles:

legality;

openness and transparency;

equalities and competitivenesses;

state regulation and control;

accounting of features of objects of the state and municipal patterns of ownership;

protection of the economic competition;

creating favorable conditions for investment attraction;

complete, timely, reliable informing on objects of lease and procedure for their transfer to lease;

providing competitive lease term and other agreement types.

6. Industry features of lease of the state-owned and municipal property can be established only by the laws.

The relations of lease of personal and real estate, objects of property complex of National academy of Sciences of Ukraine and national industry academies of Sciences are regulated by this Law taking into account the features provided by the Law of Ukraine "About features of legal regime of activities of National academy of Sciences of Ukraine, national industry academies of Sciences and the status of their property complex".

The relations of lease of the personal and real estate assigned to military units, institutions, organizations and the organizations of the Armed Forces of Ukraine and others, the military forming formed according to the laws of Ukraine and also specially authorized central executive body concerning the organization of special communication and information security, the regional bodies and territorial subdivisions, organizations of Public service of special communication and information security of Ukraine subordinated to it which keep its account in special procedure are regulated by this Law taking into account the features provided by the Law of Ukraine "About economic activity in the Armed Forces of Ukraine".

The relations of lease of the personal and real estate belonging to higher educational institutions and/or scientific institutions which are founders of the scientific park are regulated by this Law taking into account the features provided by the Law of Ukraine "About scientific parks".

The relations of lease of objects in the spheres of heat supply, water supply and drainage system which are in municipal property are regulated by this Law taking into account the features provided by the Law of Ukraine "About features of transfer to lease or concession of objects in the spheres of heat supply, water supply and drainage system which are in municipal property".

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