LAW OF THE AZERBAIJAN REPUBLIC

On May 2, 2000 No. 876-IQ

About credit unions

This Law establishes economic, legal and organizational basis of creation and activities of credit unions in the Azerbaijan Republic.

Chapter I. General provisions

Article 1. Concept of credit union

1. The credit union is the non-bank credit institution created by the physical persons and (or) legal entities which are the small business entities which are voluntarily uniting on the basis of community of interests for mutual lending by concentration of the free money.

2. Mutual lending is the short-term and long-term loan issued at the expense of the funds raised in credit union for payment of economic and social needs of his members.

3. The credit union has own property, can acquire on its own behalf the property and non-property rights, to be claimant and the defendant in court.

4. Provisions of this Law extend also to credit cooperatives, except as specified establishments of other rule the Law of the Azerbaijan Republic "About agricultural cooperation".

Article 2. Legislation on credit unions

2.1. The legislation on credit unions consists of the Constitution of the Azerbaijan Republic, this Law, the Civil code of the Azerbaijan Republic, the Law of the Azerbaijan Republic "About non-bank credit institutions" and other legal acts of the Azerbaijan Republic.

2.2. The relations in the field of credit unions in the Alyatsky free economic zone are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

Article 3. Basic principles of activities of credit union

1. Treat the basic principles of activities of credit union:

1.1. Consolidation of members on the basis of community of interests and mutual trust;

1.2. Voluntariness of membership;

1.3. Publicity of activities;

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