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The document ceased to be valid since April 21, 2022 according to article 42 of the Law of the Republic of Uzbekistan of April 20, 2022 No. ZRU-765

LAW OF THE REPUBLIC OF UZBEKISTAN

of December 17, 2012 No. ZRU-339

About private bank and financial institutions and guarantees of their activities

(as amended on 18-02-2019)

Accepted by Legislative house on November 8, 2012

Approved by the Senate on December 5, 2012

Chapter 1. General provisions

Article 1. Purpose and main objectives of this Law

The purpose of this Law is relations management in the field of private bank and other private financial institutions (further - private bank and financial institutions) and guarantees of their activities.

The main objectives of this Law are ensuring protection of the rights and legitimate interests of private bank and financial institutions, creation of conditions for attraction to the bank and financial sphere of private equity, expansion of the competition and improvement of quality of customer service in the market of banking and other financial services.

Article 2. Legislation on private bank and financial institutions and guarantees of their activities

The legislation on private bank and financial institutions and guarantees of their activities consists of this Law and other acts of the legislation.

If the international treaty of the Republic of Uzbekistan establishes other rules, than those which are stipulated by the legislation the Republic of Uzbekistan about private bank and financial institutions and guarantees of their activities then are applied rules of the international treaty.

Article 3. Private bank and financial institutions

Private bank and financial institutions - banks and other credit institutions, insurance companies, and also other legal entities providing exclusively financial services in authorized fund (authorized capital) of which the share of physical persons - founders (participants) shall constitute at least fifty percent.

Private bank and financial institutions are subjects of entrepreneurship.

Cannot be founders (participants) of private bank and financial institutions:

legal entities, in authorized fund (authorized capital) of which there is share of the state;

state bodies, and also political parties, labor unions, public funds and religious organizations.

Officials of state bodies cannot hold paid position in private bank and financial institutions.

Article 4. Property basis of activities of private bank and financial institutions

Activities of private bank and financial institutions can be performed on the basis of their own property and (or) the attracted property according to the procedure, established by the legislation.

The property, including property rights, on basis and by means of which private bank and financial institutions perform the activities can be subject to purchase and sale, pledge, lease and other transactions connected with establishment, change and (or) the termination of the rights and obligations, according to the procedure, stipulated by the legislation.

Article 5. Organization of activities of private bank and financial institutions

The organization of activities of private bank and financial institutions is performed according to the legislation.

Specially authorized state bodies on regulation and supervision of activities of private bank and financial institutions are state bodies to which functions of regulation and the supervision of organization activity providing banking, insurance, leasing or other financial services according to the legislation are assigned.

Specially authorized state bodies in cases, stipulated by the legislation, in the corresponding field of activity can establish qualification requirements to heads of private bank and financial institutions, and also establish economic standard rates and the extreme sizes, obligatory for execution by private bank and financial institutions, of the performed investments at the expense of the raised funds.

The procedure for regulation and supervision of activities of private bank and financial institutions is determined by the legislation.

Article 6. Taxation of activities of private bank and financial institutions

The taxation of activities of private bank and financial institutions is performed according to the tax legislation, and for them privileges and preferences on taxes and other obligatory payments can be provided.

Chapter 2. Rights and obligations of private bank and financial institutions

Article 7. Rights of private bank and financial institutions

Private bank and financial institutions have the right:

to independently perform the activities and to render banking and financial services;

choose the development strategy and programs of participation in the market of banking and financial services;

gain income (profit) on the activities in the unrestricted size and dispose of it at discretion according to constituent documents;

perform in accordance with the established procedure foreign economic activity.

Private bank and financial institutions can have also other rights according to the legislation.

Article 8. Obligations of private bank and financial institutions

Private bank and financial institutions shall:

fulfill the obligations following from the agreements signed by them;

pay taxes and other obligatory payments;

establish the amount of compensation of persons working according to the employment contract (contract), not below the size established by the legislation according to the first grade of the Single scale of charges in compensation timely to make calculations with them, and also insure the civil responsibility as the employer;

observe requirements of the legislation and regulating documents in the field of labor protection and safe engineering;

observe requirements of the legislation on the competition and about consumer protection;

to timely inform the relevant state bodies on change of the location (postal address) and other details according to the legislation;

observe requirements of conducting financial accounting and the reporting according to the legislation;

in accordance with the established procedure and terms to represent the reporting on the activities to the relevant state bodies.

Private bank and financial institutions can perform also other duties according to the legislation.

Article 9. Merging of private bank and financial institutions

Private bank and financial institutions for the purpose of coordination of activities, protection of the rights and legitimate interests can unite in associations (unions) and other associations according to the legislation.

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