Document from CIS Legislation database © 2003-2019 SojuzPravoInform LLC

LAW OF THE AZERBAIJAN REPUBLIC

of December 29, 2006 No. 226-IIIQ

About deposit insurance

(The last edition from 30-06-2017)

This law determines rules of creation and action of system of collective compulsory deposit insurance of physical persons, and also payments of compensations for deposits in the banks performing activities in the Azerbaijan Republic.

Section I. General provisions

Article 1. Purposes of creation of deposit insurance system

The purposes of creation of deposit insurance system are prevention of risk of loss of the money accepted on storage at physical persons in case of loss by banks and local branches of foreign banks of the solvency, ensuring stability and development of financial and bank system.

Article 2. Basic concepts

2.1. The concepts used in this law express the following values:

2.1.1. Contribution - the money accepted by bank in national and foreign currency, including the added percent which it shall pay back based on the relevant legislation or the agreement;

2.1.2. The protected contribution - the contribution compensated to the protected investor by Fund of deposit insurance (further - Fund) in case of loss occurrence. The following deposits do not belong to protected:

2.1.2.1. it is excluded according to the Law of the Azerbaijan Republic of 19.01.2016 No. 100-VQD

2.1.2.2. the deposits attracted with the branches opened by bank outside the territory of the Azerbaijan Republic;

2.1.2.3. the deposits as a result of suspicious transactions in connection with legalization of money or other property received in the criminal way and financing of terrorism established in the procedure corresponding to the legislation;

2.1.2.4. deposits which emergence as a result of crime execution is established by the judgment;

2.1.2.5. deposits which it is seized;

2.1.2.6. deposits which were accepted with the annual interest rate exceeding the limit set according to article 8.1.20 of this Law by day of attraction;

2.1.2.7. money on the bank accounts opened by physical persons in connection with business activity;

2.1.2.8. the money of physical persons which is on confidential management of bank;

2.1.2.9. it is excluded according to the Law of the Azerbaijan Republic of 19.01.2016 No. 100-VQD

2.1.2.10. it is excluded according to the Law of the Azerbaijan Republic of 19.01.2016 No. 100-VQD

2.1.3. Insured contribution part of the protected contribution of the protected investor on which the Fund pays compensation.

2.1.4. The investor person, owning contribution in bank, and also the right to dispose of contribution based on the legislation and/or the agreement.

2.1.5. The protected investor - the physical person owning contribution in bank, except for the following persons:

2.1.5.1. members of the Supervisory board of bank, Auditing committee, board and their close relatives (the husband/wife, their parents and children including adopted sisters and brothers);

2.1.5.2. persons owning 10 and more percent of the bank shares granting voting power and their close relatives (the husband/wife, their parents and children including adopted sisters and brothers);

2.1.5.3. the external auditors performing audit of bank within the previous calendar year from the moment of the first publication of the announcement of payment of compensations.

2.1.5-1. Supervision body behind the financial markets - the structure created by relevant organ of the executive authority for the purpose of implementation of regulation and control in the financial markets.

2.1.6. Bank-uchastnik-bank or local branch of foreign bank having obligations on payment of insurance premiums in Fund according to the procedure, established by this Law.

2.1.7. The joint savings account - the bank account which is in ownership of two or more persons and of which dispose based on the signature of one or several of them.

2.1.8. Insurance premium - the membership, calendar and additional contributions paid to Fund by participating bank according to the procedure, established by this Law.

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