Unofficial translation. (c) Soyuzpravoinform LLC
of June 30, 1996 No. ZR-68
About banks and banking activity
Accepted by National Assembly of the Republic of Armenia on June 30, 1996
This Law determines procedure and conditions of registration, licensing of the banks created and operating in the territory of the Republic of Armenia, their branches, representations, and also branches, representations, operational offices (Items) of foreign banks, procedure and conditions of regulation and the termination of their activities, control of banking activity.
1. The bank system of the Republic of Armenia includes the Central bank of the Republic of Armenia (further - the Central bank), the banks operating in the territory of the Republic of Armenia (including subsidiary banks), their branches, representations, operational offices (Items), and also branches operating in the territory of the Republic of Armenia and representative offices of foreign banks.
2. Activities of banks in the territory of the Republic of Armenia are regulated by this Law, the laws of the Republic of Armenia "About the Central bank of the Republic of Armenia", "About bankruptcy of banks, the investment societies managing investment societies, credit institutions and the insurance companies", "About bank secrecy", other laws, and in the cases and limits provided by them - regulations of the Central bank. Additional requirements to activities of bank as member of financial group, are established by the Law of the Republic of Armenia "About the Central bank of the Republic of Armenia".
3. Features of the all-Armenian bank are established by the Law of the Republic of Armenia "About the all-Armenian bank".
The main objective of this Law is ensuring development, reliability and normal functioning of bank system and creation of equal conditions of the free economic competition for activities of banks.
1. Bank - the legal entity having the right to perform banking activity based on the license granted in the procedure established by this Law.
2. Banking activity acceptance of deposits or the address with the offer to accept deposits and their placement from name and with risk accepting contribution by loan granting, deposits, deposits and (or) implementation of investments is considered.
Without the license for banking activity granted by the Central bank (further the license) implementation of banking activity in the territory of the Republic of Armenia is forbidden.
The sum of money provided to person which conditions of provision conform to the requirements established for bank deposit agreement provided by the Civil code of the Republic of Armenia and which is not provided in the consent of the investor to accept risk of its use or is considered bank deposit it is not provided as compensation for employment or property acquisition, property rights, for works or rendering services or as instrument for ensuring of the obligation.
1. "Bank" or its derivatives only persons having the license, their branches, representations can use the word in the names unless right to use of the above-stated word is stipulated by the law or the international treaty or if "bank" follows from sense of use of the word that it is not about bank activities.
2. Banks have no right to use in the name such disorienting words which can form the basis for the distorted idea of financial position or legal status of bank.
3. "Bank" or its derivatives in advertizing, the public offer is also forbidden to use the word or to promote advertizing otherwise by persons which do not have the license for banking activity if "bank" or its derivatives follows from sense of use of the word that it is about banking activity.
Banks for the purpose of systematization of the activities, representation and protection of the interests, exchange of information and the joint solution of other tasks of banks can create the banking associations and associations which are not pursuing the profit earning aims and to enter them.
Banking associations and associations cannot perform banking activity. Banking associations and associations in ten-day time from the moment of their registration by competent state body notify on it the Central bank.
1. In the aspect of this Law and other laws regulating banking activity and also the legislation regulating activities of financial groups legal entities are considered affiliated if:
a) this legal entity with the right of vote owns 20 and more percent of voting shares (share, shares; further - the share) other person or has opportunity to predetermine solutions of other face owing to the participation or according to the agreement signed between these persons;
b) the participant (shareholder) and (or) participants (shareholders) or members of their families who are owning more than 20 percent of voting shares of one of them, or having opportunity in other not prohibited by the law to form to predetermine its decisions have the right directly or indirectly to own (including on the basis of purchase and sale, trust management, agreements of joint activities, the guarantee or other transactions) more than 20 percent of voting shares of other person, or have opportunity in other not prohibited by the law to form to predetermine solutions of the last;
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