THE RESOLUTION OF BOARD OF THE AGENCY OF THE REPUBLIC OF KAZAKHSTAN ON REGULATION AND SUPERVISION OF THE FINANCIAL MARKET AND FINANCIAL INSTITUTIONS

of March 25, 2006 No. 77

About approval of Rules of liquidation and job requirement of liquidation commission of compulsorily liquidated insurance (reinsurance) organization

For the purpose of enhancement of the regulatory legal acts regulating activities of the insurance (reinsurance) organizations, Board of the Agency of the Republic of Kazakhstan for regulation and supervision of the financial market and financial institutions (further - the Agency) DECIDES:

1. Approve the enclosed Rules of liquidation and job requirement of liquidation commission of compulsorily liquidated insurance (reinsurance) organization.

2. Recognize invalid:

1) the resolution of Board of National Bank of the Republic of Kazakhstan of October 28, 2001 No. 420 "About approval of Rules of involuntary liquidation of the insurance (reinsurance) organizations in the Republic of Kazakhstan" (registered in the Register of state registration of regulatory legal acts at No. 1769);

2) the resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and financial institutions of January 19, 2004 No. 8 "About modification and amendments in the resolution of Board of National Bank of the Republic of Kazakhstan of October 28, 2001 No. 420 "About approval of Rules about activities of temporary administration, the special managing director and involuntary liquidation of the insurance (reinsurance) organizations in the Republic of Kazakhstan", registered in the Ministry of Justice of the Republic of Kazakhstan at No. 1769" (registered in the Register of state registration of regulatory legal acts at No. 2710, published in the Yuridicheskaya Gazeta newspaper on September 16, 2005 170-171).

3. This resolution becomes effective after fourteen days from the date of its state registration in the Ministry of Justice of the Republic of Kazakhstan.

4. To department of liquidation of financial institutions (Mukasheva A. M.):

1) together with Legal department (Baysynov M. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in ten-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan to bring this resolution to the attention of the interested divisions of the Agency, insurance liquidation commissions (reinsurance) organizations.

5. To department of the international relations and public relations (Pernebayev T. Sh.) take measures to the publication of this resolution in mass media of the Republic of Kazakhstan.

6. To impose control of execution of this resolution on the vice-chairman of the Agency Uzbekov G. N.

It is approved National Bank of the Republic of Kazakhstan Chairman

It is approved Committee of information and archives of the Ministry of Culture and information of the Republic of Kazakhstan Chairman

Approved by the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and supervision of the financial market and financial institutions of March 25, 2006 No. 77

Rules of liquidation and job requirement of liquidation commission of compulsorily liquidated insurance (reinsurance) organization

The preamble is excluded according to the Resolution of Board of the Agency of the Republic of Kazakhstan on regulation and development of the financial market of 20.12.2020 No. 124

Chapter 1. General provisions

1. These rules of liquidation and job requirement of liquidation commission of compulsorily liquidated insurance (reinsurance) organization (further - Rules) are developed according to the Civil code of the Republic of Kazakhstan, the laws of the Republic of Kazakhstan "About insurance activity" (further - the Law on insurance activity), "About joint-stock companies", "About state regulation, control and supervision of the financial market and financial institutions".

2. For the purpose of application of Rules the following concepts are used:

1) minimum price - the price below which lot is not on sale;

2) the starting price - the price with which the biddings on each lot begin, the established not lower than the cost of lot (property), determined by the appraiser according to the Law of the Republic of Kazakhstan "About estimative activities in the Republic of Kazakhstan" (further - the Law on estimative activities);

3) contingencies - costs for urgent needs unplanned by liquidation commission which size does not exceed 100 (hundred) monthly settlement indicators;

4) creditor committee - the body created from among creditors of the liquidated insurance (reinsurance) organization for the purpose of ensuring interests of creditors and decision making with their participation;

5) category of creditors - group of creditors whose requirements have homogeneous character and the stipulated in Article 72 Laws on insurance activity are satisfied within certain queue;

6) the register of requirements of creditors - the document approved by authorized body on regulation, control and supervision of the financial market and financial institutions (further - authorized body) according to Item 2 of article 70 of the Law on insurance activity, reflecting the requirements of creditors recognized by liquidation commission, requirements of the organization guaranteeing implementation of insurance payments to insurers (insured, to beneficiaries) in case of liquidation of insurance companies (further - Fund) on the performed warranty payments, expenses connected with payment of the insurance portfolio of compulsorily liquidated insurance (reinsurance) organization transferred to other insurance (reinsurance) organization according to the procedure and on conditions the stipulated in Article 54-1 Law on insurance activity and Rules of transfer of the insurance portfolio and features of transfer of the insurance portfolio from the date of the introduction in legal force of the judgment about involuntary liquidation of the insurance (reinsurance) organization, and also in case of preservation or deprivation of insurance license (reinsurance) organization, approved by the resolution of Board of National Bank of the Republic of Kazakhstan of October 29, 2018 No. 262, registered in the Register of state registration of regulatory legal acts at No. 17885;

7) values - currency values, banknotes and coins of the Republic of Kazakhstan, securities and forms of the strict reporting, precious metals, products from them, and also the coins made of precious metals, which left the address and valuable objects;

8) lot - the property offered for auction divided into units, indivisible for realization;

9) the periodic printing edition - the newspaper, the magazine, the almanac, the bulletin, the appendices to them having the permanent name, the current issue and issued at least once in three months;

10) the creditor of the insurance (reinsurance) organization - person having the property requirements arising from civil and other obligations to the liquidated insurance (reinsurance) organization;

11) sales price - the final price of lot established as a result of the biddings, and in case of realization of property without tendering - the final price of property established by creditor committee or the chairman of liquidation commission according to Rules;

12) object of realization - the property of the liquidated insurance (reinsurance) organization put up for sale as separate (independent) unit or consolidated from several units in one lot, other property;

13) the seller - liquidation commission of the liquidated insurance (reinsurance) organization;

14) the buyer - the winning bidder who signed the purchase and sale agreement with the seller;

15) the winning bidder - the participant who offered top price for lot at the biddings;

16) the bidder - the physical person or legal entity which submitted the application for participation in the biddings in the procedure established by the organizer of the biddings and registered by the organizer of the biddings as the participant;

17) the organizer of the biddings - liquidation commission of the liquidated insurance (reinsurance) organization either the physical or legal entity who signed with liquidation commission the service provision agreement on tendering and uninterested in results of the biddings;

18) the English method of the biddings - method of the biddings in case of which the starting price of lot raises with in advance announced step to the moment when there is one of participants who offered maximum price for lot;

19) the Dutch method of the biddings - method of the biddings in case of which the starting price of lot goes down with in advance announced step to the moment when one of participants agrees to purchase lot at the announced price;

20) liquidation commission - the body appointed (exempted) by authorized body in case of adoption by court of the decision on involuntary liquidation of the insurance (reinsurance) organization, performing under direct management of the chairman of liquidation commission of power on property management and cases of the insurance (reinsurance) organization during liquidation procedure for the purpose of completion of cases of the insurance (reinsurance) organization and ensuring settlings with her creditors;

21) expenses of liquidation commission - the costs connected with consumption of goods, works and services in the course of involuntary liquidation of the insurance (reinsurance) organization (further - liquidating expenses);

22) liquidating, competitive weight - the assets of the liquidated insurance (reinsurance) organization intended for completion of cases of the insurance (reinsurance) organization and ensuring settlings with her creditors;

23) inappropriate expenditure of liquidating weight - implementation of the costs which are not provided by the estimate of liquidating expenses approved with authorized body or approved by creditor committee;

24) the approved estimate of liquidating expenses - the estimate for the corresponding period of time approved by the chairman of liquidation commission in coordination with authorized body or creditor committee;

25) the estimate of liquidating expenses - the document reflecting the predicted costs of liquidation commission for a certain period of time, approved by creditor committee (in the absence of creditor committee - the chairman of liquidation commission in coordination with authorized body);

26) liquidating production - the procedure of the termination of insurance activity (reinsurance) organization as legal entity, performed for the purpose of completion of cases of the insurance (reinsurance) organization, and ensuring settlings with her creditors;

27) the liquidated insurance (reinsurance) organization - the insurance (reinsurance) organization which is in process of involuntary liquidation in connection with the become effective judgment;

28) property of the liquidated insurance (reinsurance) organization - set of the property benefits and rights having cost assessment and included in liquidating, competitive weight;

29) temporary administration (the temporary administrator) - the body appointed by authorized body to the period from the date of deprivation of the insurance (reinsurance) organization of the license before appointment of liquidation commission as authorized body for ensuring safety of property of the insurance (reinsurance) organization and implementation of actions for ensuring management of the insurance (reinsurance) organization;

30) head office - office at which the chairman of liquidation commission performs the organizational and administrative and other functions provided by Rules.

3. In case of recognition of the insurance (reinsurance) organization by the bankrupt its liquidation is performed according to Rules and the legislation of the Republic of Kazakhstan.

Chapter 2. Procedure for carrying out involuntary liquidation of the insurance (reinsurance) organization

4. The beginning of liquidating production of the insurance (reinsurance) organization is date of the introduction in legal force of the judgment about involuntary liquidation of the insurance (reinsurance) organization.

5. From the effective date the judgments about involuntary liquidation of the insurance (reinsurance) organization:

1) there come the effects provided by subitems 1), 2), 3), 4), 5) of Item 2 of article 69 of the Law on insurance activity;

2) the actions provided by Items 3-1 and 3-3 of article 69 of the Law on insurance activity are performed;

3) the actions performed from name or at the expense of the liquidated insurance (reinsurance) organization have legal force only if they are made by the chairman of insurance liquidation commission (reinsurance) organization, or person to whom the chairman of liquidation commission issues the power of attorney which is drawn up in the procedure established by the legislation of the Republic of Kazakhstan on making of these actions;

4) terms of all debt obligations of the liquidated insurance (reinsurance) organization are considered expired, except as specified, provided by the Law on insurance activity;

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