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LAW OF THE REPUBLIC OF MOLDOVA

of July 22, 2016 No. 184

About agreements on financial provision

(as amended on 03-11-2022)

The parliament adopts this organic law.

Chapter I. General provisions

Article 1. Regulation subject

This law regulates the legal regime applicable to agreements on financial provision and financial provisions, provision and execution of financial provisions, right to use of financial provisions, recognition of contracts on financial provision with cession of property and regulations on liquidating netting, inapplicability of certain provisions in the field of insolvency and the right applicable to the questions connected with financial provisions.

Article 2. Scope of application

(1) This law is applied to agreements on financial provision provided that they meet in total the following requirements:

a) are concluded between persons specified in Article 3;

b) can be confirmed with record, registration electronically or on any other strong carrier.

(2) This law is applied to the financial provisions meeting in total the following requirements:

a) subject of financial provisions are money, financial instruments or monetary claims;

b) provision of financial provisions can be confirmed with record.

(This law does not regulate 3):

a) the rights which this or that person can have concerning the assets provided to them as financial provision;

b) the rights which arise differently, than based on agreements on financial provision and differently, than on the basis of application of legislative provisions about excitement or continuation of liquidation procedure or measures for restructuring.

(4) Operation of this law does not extend to financial provisions which subject are the shares issued by the supplier of providing, the shares belonging to it in the affiliated companies or in societies, which exclusive purpose – to become the owner of the means of production which are essential to implementation of activities of the supplier of providing or to become the owner of real estate.

(5) Ceased to be valid.

(6) This law does not affect situations of the Law on credit agreements with consumers No. 202 of July 12, 2013.

(7) Provisions of the Law on pledge No. 449-XV of July 30, 2001 are applied to the agreements on financial provision regulated by this law if they do not contradict provisions of this law.

Article 3. Subjects of this law

The receiver and the supplier of financial provision shall belong, everyone separately, to one of the following categories:

1) body of the public power (except for the subjects who obtained the state guarantees provided that they do not belong to the categories provided by the Items 2)-4) of this Article), including:

a) bodies public the authorities of the republic Moldova, responsible or participating in debt management of the public sector; and

b) bodies public the authorities of the republic Moldova, authorized to operate of customer account;

2) National Bank of Moldova, Central Bank of other state, European Central Bank, International settlements bank, multilateral development bank, International Monetary Fund and European Investment Bank;

3) the subject which is subject to prudential supervision namely:

a) the bank, as such is determined in the Law on activities of banks No. 202/2017;

b) investment society, as such is determined in the Law on the capital market No. 171 of July 11, 2012;

c) payment society, as such is determined in the Law on payment services and electronic money No. 114 of May 18, 2012;

d) the insurer (overcautious person), as such are determined in the Insurance law No. 407-XVI of December 21, 2006;

4) the central partner, the calculating agent or Clearing House, as such are determined in the Law on finality of calculations in payment systems and settlement systems by financial instruments No. 183 of July 22, 2016, including the similar legal entities acting in the markets of futures, options and derivatives to whom provisions of the specified law, and legal entities who act on behalf and at the expense of one or more persons who include the bondholder or the owner of other debt requirements or any of the subjects determined in this Article do not extend.

Article 4. Concepts

For the purposes of this law the following concepts are used:

1) multilateral development bank – bank of the international and regional development, as that: The International Bank for Reconstruction and Development, the International Finance Corporation, Inter-American Development Bank, Asian Development Bank, the African development bank (African Development Bank), Development bank of the Council of Europe (Council of Europe Development Bank), Nordic Investment Bank (Nordic Investment Bank), the Caribbean Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the European investment fund (European Investment Fund), Multilateral agency on investment guarantees (Multilateral Investment Guarantee Agency), System of international financing of programs of immunization (International Finance Facility for Immunisation), Islamic development bank (Islamic Development Bank);

2) the basis for execution of financial provision – the non-execution of the secured financial liability or any other circumstance approved between the parties as similar to non-execution in case of which approach, in accordance with the terms of the agreement on financial provision or by law, the receiver of providing is competent to perform or reserve financial provision or to use regulations on liquidating netting;

3) regulations on liquidating netting – provision of the agreement on financial provision or the agreement which part is the agreement on financial provision, or for lack of similar provision, any precept of law owing to which in case of approach of the basis for execution of financial provision irrespective of whether it is performed by means of netting, mutual offsettings or otherwise, following provisions are implemented:

a) obligations of the parties become subject to immediate execution and are expressed to pay the sum of money representing them settlement current value to obligations or stop and replaced with the obligation to pay such amount; and/or

b) calculation of reciprocal debt of each party based on these obligations is made, and the party which has heavy debt shall pay to other party the exact amount equal to difference of these debts;

4) the agreement on financial provision – the contract with transfer or without cession of property which subject is the guarantee of execution of secured financial liabilities irrespective of whether they are settled by the framework agreement or general provisions and conditions;

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