RESOLUTION OF ADMINISTRATIVE BOARD OF NATIONAL BANK OF THE REPUBLIC OF MOLDOVA

of June 2, 2000 No. 143

About approval of Regulations on connection or absorption of banks of the Republic of Moldova

Based on the Art. 4, 5, 11 and 44 Laws on National Bank of Moldova and the Art. 1, 7, 13, 16 and 27 Laws on financial institutions, and also for the purpose of establishment of the mechanism of connection and absorption of banks of the Republic of Moldova Administrative board of National Bank of Moldova

solved:

1. Approve Regulations on connection and absorption of banks of the Republic of Moldova it (is applied).

2. To department of monetary management and researches (Mr. V. Negrutsa), to Department of currency transactions and external relations (Mr. V. Muntyanu) and to Department of the credits and market transactions (Mrs. N. Savin) to bring in functional obligations studying of the document packages provided to National Bank according to the above-named regulations for system risk assessment.

3. To department of the credits and market transactions to exercise supervision of process of connection (absorption) of banks from the point of view of compliance with law about personal estate.

4. Control over the implementation of this decision to assign to Department of regulation and banking supervision (Mr. R. Mustyatse).

5. This decision becomes effective from the date of publication in Monitorul Oficial al Republicii Moldova.

Approved by the Resolution of Administrative board of National Bank of the Republic of Moldova of June 2, 2000 , No. 143

Regulations on connection or absorption of banks of the Republic of Moldova

I. Reasons, purpose and application

1. These regulations are developed according to the powers of National Bank of Moldova provided by Articles 4, of 5, 11 and 44 Laws on National Bank of Moldova and Articles 1, of 7, of 13, 16 and 27 Laws on financial institutions.

2. The purpose of these regulations is ensuring successful functioning of the financial sector of the Republic of Moldova founded on the strong and competitive system directed to the market relations and prevention of any risk dependent on system.

3. Any connection or absorption of banks is performed with the written permission of National Bank.

4. These regulations establish rules and procedures which shall be used by the commercial banks involved in process of connection or absorption of banks.

5. Provisions of these Regulations are applied also in case of sale of considerable part of assets of bank.

II. Determinations

6. In these regulations the following determinations are established:

6.1. Connection is process of reorganization from which the termination of existence of two or more banks results (banks successors) and the new bank (successive bank) is created.

In case of connection of banks all property rights and obligations of each connected bank pass, according to the transfer act and the consolidated balance, to bank successor.

The non-inclusion in the consolidated balance and in the transfer act of any contractual commitments, issued obligations and guarantees, etc. of the connected bank does not exempt bank successor from their accomplishment after connection registration.

6.2. Absorption is process of reorganization from which the termination of existence of one or more banks (the absorbed banks) and the complete transition of their rights and obligations to one bank (absorbing bank) which becomes successor of the rights and obligations of the absorbed bank (banks) results.

In case of absorption all property rights and obligations of the absorbed bank pass to the absorbing bank, according to the transfer act and the consolidated balance.

The non-inclusion in the consolidated balance and in the transfer act of any contractual commitments, issued obligations and guarantees, etc. of the absorbed bank does not exempt bank successor from their accomplishment after connection registration.

6.3. Sale of considerable part of assets of bank which cost constitutes more than 10 percent from asset cost of bank according to balance for the last accounting period, is performed with the written permission of National Bank.

Sale of considerable part of assets of bank, component from 10 to 50 percent from asset cost of bank, is performed based on the solution of council of the bank.

Sale of considerable part of assets of bank, component over 50 percent from asset cost of bank, is performed based on the decision of general meeting of shareholders of bank.

III. Regulation of connection or absorption

7. The National Bank approves connection or absorption of commercial banks only if it does not result in the increased risk in financial system, and will promote development of the strong and competitive financial sector.

8. The banks which are in process of reorganization continue to perfrom calculations by means of the corresponding accounts and to fulfill the obligations before registration according to these regulations.

9. In case of connection the National Bank grants to bank successor the license for implementation of financial activities.

10. After absorption the bank successor will perform the activities based on the available license.

11. The bank successor has the right to open branches, representations and additional offices, based on the yielding bank (banks) according to Regulations about branches, representations and additional offices of banks, except for the II Chapters of the regulations specified in this Item.

12. In case of connection or consolidation all rights of the connected or absorbed bank to carrying out financial activities and technical procedures with respect thereto pass to bank successor (except for corrective documents proceeding from provisions of the third paragraph of this Item and cases of adoption of other decision).

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