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LAW OF THE REPUBLIC OF ARMENIA

of December 26, 2008 No. ZR-30

About Vsearmyansky bank

Accepted by National Assembly of the Republic of Armenia on January 17, 2009

Chapter 1. General provisions

Article 1. Subject of regulation of this Law

This law regulates procedure and conditions of creation and activities of Vsearmyansky bank, the principles of activities, procedure for forming and activities of governing bodies, procedure of regulation and control of Vsearmyansky bank, and also other relations connected with activities of Vsearmyansky bank.

Article 2. Status of Vsearmyansky bank

1. Vsearmyansky bank - the open joint stock company based on this Law.

2. Activities of Vsearmyansky bank are regulated by the laws of the Republic of Armenia regulating activities of banks and other legal acts adopted on their basis if this law does not provide other.

3. If international treaties of the Republic of Armenia establish other regulations, than those which are provided by this Law then are applied regulations of international treaties.

Article 3. General capital, founders and members of Vsearmyansky bank

1. The size of the general capital of Vsearmyansky bank shall be at least the size of the general capital established for again created bank in the territory of the Republic of Armenia.

2. One of founders of Vsearmyansky bank is the Central bank of the Republic of Armenia (further - the Central bank) or the Republic of Armenia. the rights and obligations of the Central bank and the Republic of Armenia as founders of Vsearmyansky bank are determined by the legislation of the Republic of Armenia. other subjects of the civil law can also be founders or members of Vsearmyansky bank.

Article 4. Principles of activities of Vsearmyansky bank

1. Vsearmyansky bank - the joint-stock company acting on the basis of private and state cooperation.

2. The Vsearmyansky bank performs activities on the basis of the principle not to compete with the banks operating in the territory of the Republic of Armenia, in the territory of the Republic of Armenia.

Article 5. Use of the idiom "Vsearmyansky bank" and words "Vsearmyansky"

1. The phrase "Vsearmyansky Bank" in the name can be used only the organization founded on the basis of this Law, its branches and representations. At the same time other banks operating in the territory of the Republic of Armenia cannot use the word "Vsearmyansky" or its translations and derivatives in the name.

Chapter 2. Activities of vsearmyansky bank

Article 6. Purpose and transactions of Vsearmyansky bank

1. The purpose of Vsearmyansky bank - to promote forming of the strong, competitive and based on knowledge potential of armyanstvo and to direct it to increase in competitiveness of all armyanstvo in the world market.

2. The Vsearmyansky bank performs the activities within the strategy of authorized body.

3. Vsearmyansky bank:

1) can place bonds and depositary certificates to nonresidents on the basis of public offer, and to residents - only on the basis of the non-public offer. At the same time the size of the funds raised from each resident by bonds and/or deposit certificates shall be more than 100 million dram of the Republic of Armenia;

2) does not operate accounts and does not grant short-term loans (in sense of this Law the loans granted for the term of no more than 3 calendar years are considered as short-term loans);

3) grants long-term loans on development and/or investments for increase in competitiveness of private sector of the Republic of Armenia and stimulation of export.

Article 7. Authorized body and program of activities, and report of Vsearmyansky bank

1. The authorized body is created by the decision of the Government of the Republic of Armenia. The procedure for forming and activities of authorized body, and also task establishes the Government of the Republic of Armenia.

2. The Vsearmyansky bank when scheduling activities is guided by the strategy of authorized body.

3. The Vsearmyansky bank annually constitutes and till November 1 of this year represents to authorized body the annual program of investing activities of Vsearmyansky bank approved by council of Vsearmyansky bank the next year which shall correspond to the strategy of authorized body. The term established by this part does not extend to the program of investing activities of Vsearmyansky bank for the first year of its activities. The questions connected with submission of the program of investing activities for the first year of activities of Vsearmyansky bank are regulated by transitional provisions of this Law.

4. The Vsearmyansky bank till April 1 of the next year submits in authorized body the annual statement about accomplishment of the program provided by part 3 of this Article which the authorized body considers and if necessary represents offers to Vsearmyansky bank, and these offers are reflected in plans of activities of Vsearmyansky bank for the next year and reports on them.

Article 8. Financial accounting, financial reporting and external audit

1. The Vsearmyansky bank keeps financial accounting and represents the financial reporting according to the International Financial Reporting Standards and the guidelines of international standards established by the Law of the Republic of Armenia "About financial accounting".

2. Every year for the purpose of check of financial and economic activities of Vsearmyansky bank the Vsearmyansky bank shall involve the impartial auditor person having the right to implementation of auditor services according to the procedure, established by the laws and other legal acts" further - external audit), having signed with it the relevant agreement. External audit of Vsearmyansky bank is chosen general meeting according to the procedure, established by the Central bank.

Chapter 3. Management and managers of vsearmyansky bank

Article 9. Governing bodies of Vsearmyansky bank

1. Governing bodies of Vsearmyansky bank are:

1) General meeting of members of Vsearmyansky bank (further - General meeting);

2) Council of Vsearmyansky bank (further - Council);

3) the Chief executive officer or the chairman of the board of Vsearmyansky bank, in the case provided by the charter of Vsearmyansky bank, directorate or board of Vsearmyansky bank.

2. The procedure for forming and activities of governing bodies of Vsearmyansky bank, circle of powers and requirements imposed to these bodies are established by the law of the Republic of Armenia "About banks and banking activity" and the Charter of Vsearmyansky bank if this law does not provide other.

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