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RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of October 22, 2014 No. 199

About approval of Rules of carrying out transactions with documentary credits banks of the Republic of Kazakhstan

(as amended on 22-11-2021)

According to the Law of the Republic of Kazakhstan of March 30, 1995 "About National Bank of the Republic of Kazakhstan", for the purpose of enhancement of procedure for carrying out transactions by banks with documentary credits, the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of carrying out transactions with documentary credits by banks of the Republic of Kazakhstan.

2. Recognize invalid some resolutions of Board of National Bank of the Republic of Kazakhstan according to appendix to this resolution.

3. This resolution becomes effective after ten calendar days after day of its first official publication.

Chairman of National Bank

K. Kelimbetov

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of October 22, 2014 No. 199

Rules of carrying out transactions with documentary credits banks of the Republic of Kazakhstan

These rules of carrying out transactions with documentary credits by banks of the Republic of Kazakhstan (further - Rules) parts two of article 15 of the Law of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan", the subitem 14) of Item 2 of article 30 of the Law of the Republic of Kazakhstan "About banks and banking activity in the Republic of Kazakhstan", the Unified customs and rules according to the documentary credit accepted by International Chamber of Commerce are developed according to the subitem 25) (International Chamber of Commerce, UCP Publication No. 600), and determine procedure for carrying out transactions with documentary credits by banks of the Republic of Kazakhstan (further - banks).

Chapter 1. General provisions

1. The documentary credit (further - the letter of credit) - the form of documentary calculations providing the irrevocable obligation of bank assumed by it according to the statement and according to instructions of the client or at own discretion to make payment to the specified beneficiary or on its specifying, or the acceptance and payment of bills of exchange (bills of exchange) exposed by the beneficiary or negotsiation against the documents provided by the letter of credit to fixed term if all conditions of the letter of credit are complied.

The letter of credit represents the transaction isolated from the purchase and sale agreement or other agreement on which it can be based.

2. In Rules the following concepts are used:

1) the advising bank - the bank authorized by emitting bank on transfer to the beneficiary of the letter of credit and/or changes to it without obligations from its party;

2) prikazodatel of the letter of credit (further - prikazodatel) - person representing in the bank (emitting bank) serving it the statement on opening of the letter of credit;

3) the beneficiary - legal entity or physical person for benefit of which the letter of credit opens;

4) negotsiation - purchase by the performing bank of the bills of exchange (bill of exchange) exposed on bank other, than the performing bank and (or) documents by advancing or representation of consent to advance money to the beneficiary in banking day (or before its approach) to which compensation shall be provided to the performing bank;

The performing bank - the bank authorized by emitting bank to accept 5), to check documents and to perform the letter of credit subject to its terms and conditions, or any bank if the letter of credit provides execution in any bank;

6) the paid letter of credit - the letter of credit when which opening the prikazodatel makes available to emitting bank the amount of money (covering) equal to the amount of the letter of credit, on effective period of the letter of credit with condition of possible use of this money for payments for the letter of credit;

7) the confirmed letter of credit - the obligation of confirmatory bank in addition to the obligation of emitting bank to perform according to the letter of credit accomplishment of the payment obligation or negotsiation properly of the drawn-up representation;

8) confirmatory bank - the bank assuming liability in addition to the obligation of emitting bank on execution of the letter of credit subject to its terms and conditions;

9) the transferabelny letter of credit - the letter of credit in which it is specified that it is translated and providing possibility of its execution fully or partially on specifying of the first beneficiary for benefit of one or several second beneficiaries (translated);

10) emitting bank - the bank opening the letter of credit according to the statement of prikazodatel of the letter of credit and incurring the obligation on execution of the letter of credit subject to its terms and conditions.

3. The relations which are not settled by Rules are regulated by the unified customs and rules according to the documentary credit accepted by International Chamber of Commerce (International Chamber of Commerce, UCP Publication No. 600), the agreements (in the presence) signed between the parties, conditions of statements on opening of the letter of credit and the business customs applicable in banking practice.

Chapter 2. Procedure for opening of the letter of credit

4. Opening of the letter of credit by bank is performed in the presence at it the license of authorized body on regulation, control and supervision of the financial market and the financial organizations on carrying out banking and other activities for opening (exposure) and confirmation of the letter of credit and obligation fulfillment on it.

5. For opening of the letter of credit (except for opening of the letter of credit by National Bank) the prikazodatel represents in the bank (emitting bank) serving it the documents provided by internal documents of bank (emitting bank) and also the statement for opening of the letter of credit.

5-1. For opening of the letter of credit by National Bank the prikazodatel submits in National Bank the application on its opening in any form with application of a copy of the agreement providing use of form of calculation using the documentary credit.

6. The statement on opening of the letter of credit contains:

1) name and location of prikazodatel;

2) name and location of the beneficiary, its bank details;

3) the name of the advising bank;

4) type of the letter of credit;

5) amount of the letter of credit;

6) method of execution of the letter of credit;

7) specifying of bank in which the letter of credit is subject to execution or the fact that it is subject to execution in any bank;

8) description of goods or services;

9) the list of documents or condition against which execution of the letter of credit shall be made;

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