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The document ceased to be valid since April 21, 2022 according to article 42 of the Law of the Republic of Uzbekistan of April 20, 2022 No. ZRU-765

LAW OF THE REPUBLIC OF UZBEKISTAN

of September 20, 2006 No. ZRU-53

About microcredit institutions

Accepted by Legislative house on June 28, 2006

Approved by the Senate on August 25, 2006

(as amended on 12-10-2021)
Article 1. Purpose of this Law

The purpose of this Law is relations management in the field of creation and activities of microcredit institutions.

Article 2. Legislation on microcredit institutions

The legislation on microcredit institutions consists of this Law and other acts of the legislation.

If the international treaty of the Republic of Uzbekistan establishes other rules, than those which are stipulated by the legislation the Republic of Uzbekistan about microcredit institutions then are applied rules of the international treaty.

Article 3. Microcredit institution

Microcredit institution is the legal entity performing activities for rendering services in the sphere of provision of the microcredit, microloan, microleasing and rendering other microfinancial services according to this Law.

The microcredit institution has the right to open in accordance with the established procedure bank accounts for the territories of the Republic of Uzbekistan.

The microcredit institution has no right to be engaged directly in the productive, insurance, trade and intermediary and other activity which is not provided by this Law.

Article 4. Creation of microcredit institutions

Microcredit institutions can be created by legal and (or) physical persons in any form of business according to the legislation.

Microcredit institutions cannot be created by state bodies, political parties, labor unions the religious organizations, other microcredit institutions and pawnshops.

Article 5. Constituent documents of microcredit institution

The microcredit institution acts on the basis of the constituent documents.

Constituent documents of microcredit institution in addition to the data established by the legislation for certain forms of business of legal entities shall contain the following data:

about activities for provision of the microcredits, microloans, microleasing and rendering other microfinancial services;

about structure and powers of governing bodies;

about sources of forming of means for provision of the microcredits, microloans, microleasing and rendering other microfinancial services;

about procedure for carrying out audit of microcredit institution.

Article 6. Authorized capital of microcredit institution

The authorized capital of microcredit institution is created of money, and also other property which is not exceeding twenty percent from the size of authorized capital of this organization.

When forming authorized capital of microcredit institution use of the means received on credit, on the security and other raised funds are not allowed.

The minimum size of authorized capital of microcredit institution shall be created only from money about day of the address for receipt of the license.

Article 7. Trade name and seal of microcredit institution

The trade name of microcredit institution shall contain the phrase "microcredit institution" and not resemble trade name of other microcredit institutions.

The legal entity who is not meeting the requirements of this Law having no right to use in the name the phrase "microcredit institution".

The microcredit institution shall have the seal containing its full trade name in official language and specifying to the place of its stay. In seal the trade name in other language can be at the same time specified.

The microcredit institution has the right to have stamps, forms with the name and own emblem.

Article 8. State registration of microcredit institutions

Microcredit institutions are subject to state registration according to the legislation.

Article 9. Licensing of activities of microcredit institution

The microcredit institution performs activities for rendering microfinancial services after receipt of the license.

The decision on issue or motivated refusal in licensing of microcredit institution is accepted within thirty calendar days from the date of the address with the statement for licensing and provisions of the documents necessary for receipt of the license.

Article 10. The documents provided for receipt of the license

For receipt of the license the microcredit institution shall provide the following documents in the Central bank of the Republic of Uzbekistan or its territorial administrations:

statement for licensing;

information about structure of governing bodies of microcredit institution;

the document of bank confirming forming of authorized capital of microcredit institution.

Article 11. Refusal in licensing

Central Bank of the Republic of Uzbekistan can refuse licensing of microcredit institution in cases of discrepancy of the submitted documents to the requirements established by the legislation and availability in them the doubtful or distorted data.

The decision on refusal in licensing of microcredit institution goes to the applicant in writing with indication of causes of failure and term during which the applicant, having removed the specified causes, can submit documents for de novo review. At the same time the term specified in the decision on refusal in licensing shall be proportional to time necessary for remedial action.

De novo review of the documents submitted for licensing of microcredit institution is performed in time, not exceeding fifteen days from the date of receipt of the statement with all necessary documents. The application submitted after the term specified in the decision on refusal in licensing of microcredit institution is considered again given.

In case of de novo review of the statement for licensing of microcredit institution the refusal in licensing on the new bases which are earlier not specified in the notification on refusal is not allowed.

The decision on refusal in licensing of microcredit institution can be appealed in court in the procedure established by the legislation.

Article 12. Suspension or cancellation of the license, and also its renewal and cancellation

The decision on suspension of action of the license is made in cases:

violations by microcredit institution of requirements of the legislation on microcredit institutions, including licensed requirements and conditions;

failures to carry out by microcredit institution of the decisions obliging to eliminate the violations revealed in its activities.

The decision on cancellation of the license is made in cases:

approaches of insolvency of microcredit institution;

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