Document from CIS Legislation database © 2003-2021 SojuzPravoInform LLC

LAW OF THE KYRGYZ REPUBLIC

of December 16, 2016 No. 207

About enforcement of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity"

(as amended of the Law of the Kyrgyz Republic of 10.12.2018 No. 100)

Accepted by Jogorku Kenesh of the Kyrgyz Republic on November 30, 2016

Article 1.

Enact the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" from the date of entry into force of this Law.

Article 2.

1. Provisions of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" extend to the bank legal relationship which arose after its introduction in action if other is not provided by this Law.

2. On the bank legal relationship which arose before enforcement of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" the last is applied to those rights and obligations which will arise after its introduction in action.

Article 3.

1. Procedures of establishment of banks, licensing, approval of officials, receipts of permissions of National Bank of the Kyrgyz Republic (further - National Bank) and the appeals of its decisions begun before enforcement of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" come to the end according to the procedure established by the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity".

2. From the date of enforcement of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" conservation regime in banks will be transformed to the mode of Temporary administration, and the conservative of bank acquires the status of the Temporary administrator.

3. The procedure of involuntary liquidation (bankruptcy) of banks begun by court before enforcement of the Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity" comes to the end judicially. The procedure of special administration will be transformed to liquidation procedure, and the special administrator acquires the status of the liquidator, at the same time court resolutions, decisions of National Bank on such transformation / change of the status are not required. The court and the liquidator are guided by the provisions of the law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity".

4. Item 5 of article 84 of the Law "About National Bank, Banks and Banking Activity" for the operating banks becomes effective since July 1, 2018.

Establish the following terms of forming of the minimum authorized capital for the operating banks (including branches of nonresident banks):

till July 1, 2016 - 400 million som;

till July 1, 2017 - 500 million som;

till July 1, 2018 - 600 million som.

Before forming of the minimum authorized capital to 600 million som according to paragraphs the second or fifth this part dividend payout to shareholders (participants) of commercial banks is not allowed.

The minimum size of the authorized capital for newly created banks is established in the amount of at least 600 million som.

Article 4.

To perform increase in the authorized capital of National Bank up to 2 (two) billion som at the expense of required reserves of National Bank.

Article 5.

1. Introduce the following amendments in the Civil code of the Kyrgyz Republic (Sheets of Jogorku Kenesh of the Kyrgyz Republic, 1996, No. 6, Art. 80; 1998, No. 6, Art. 226):

1) in Item 3 of Article 35 the word " law" shall be replaced with words "bank legislation of the Kyrgyz Republic";

2) in Article 38 words "bank savings book to bearer" shall be excluded;

3) in Article 49:

a) in part 1 words "and percent" shall be replaced with words ", percent or other payment";

b) in part 2 words "can be bearer's or" shall be replaced with the word "are";

4) in the paragraph four of item 1 of Article 99 the second sentence shall be excluded;

5) in Article 726:

a) add the name of the Article after the word "Percent" with the words "or other payment";

b) in Item 1:

first sentence after the words "from the borrower of percent" shall be added with the words "or other payment";

second sentence shall be excluded;

c) in Item 2:

exclude the words "on the amount which is not exceeding the fiftyfold size of settlement indicator";

item after the word "interest-free" add with the words "without payment for loan amount";

d) add Item 3 after the words "percent are subject to payment" with the words "or other payment on loan is performed";

e) declare item 4 invalid;

6) paragraphs two and three of item 2 of article 727 after the word "provided" add with the words "for a fee, including";

7) §2 of Chapter 34 to state in the following edition:

"§2. Credit

Article 734. Loan agreement

According to the loan agreement the creditor (the bank or non-bank financial credit institution (further - bank) shall provide money (credit) to the borrower in the amount of and on the conditions provided by the loan agreement, and the borrower shall return the received sum of money and pay percent on it.

Article 735. Loan agreement form

The loan agreement shall be signed in writing. Non-compliance with written form attracts invalidity of the loan agreement. Such loan agreement is considered insignificant.

Article 736. Determination of day of loan granting

Day of loan granting day in which the credit amount is credited into the account of the borrower, other account on specifying of the borrower is considered or it is issued to the borrower by cash.

Article 736-1. Refusal of provision or receipt of the credit

1. The creditor has the right to refuse from the borrower provided by the loan agreement of the credit fully or partially in the presence of the circumstances obviously testimonial of the fact that the amount provided to the borrower will not be returned in time.

2. In case of violation by the borrower of the obligation provided by the loan agreement on target use of the credit the creditor has the right to refuse also further crediting of the borrower according to the loan agreement, and also to take the measures provided in Item 3 of Article 736-2 of this Code.

3. The borrower has the right to refuse on a grant basis receipt of the credit during the period after the conclusion of the loan agreement and until receipt of money by the client or implementation of payment in payment for property on leasing.

Article 736-2. Target use of the credit

1. If other is not provided by the loan agreement, the borrower uses the means received according to the loan agreement at discretion.

2. If the loan agreement is signed with condition of use by the borrower of the received funds for particular purposes (purpose-oriented loan), the borrower shall provide possibility of implementation by the creditor of control of target use of credit amount.

3. In case of failure to carry out by the borrower of condition of the loan agreement about target use of credit amount, and also in case of violation of obligations, stipulated in Item 2 these Articles, the creditor has the right to demand from the borrower of early return of the remained outstanding amount on the credit if other is not provided by the loan agreement.

Article 736-3. Percent and payment for use of the credit

1. The creditor to the conclusion of the loan agreement shall provide access of each borrower to information on the size of percent and payment for use of the credit (commission fee) if the obligation of its payment is provided by the loan agreement. Information on percent and commission fees shall be open, available and be provided by bank to potential borrowers according to the legislation of the Kyrgyz Republic.

2. The creditor in case of the conclusion of the loan agreement with each specific borrower independently determines the size, frequency of charge and payment due dates of percent and commission fee if the obligation of its payment is provided by the loan agreement.

The payment procedure of interests on credit and the main credit amount are provided in the loan agreement by agreement of the parties.

Interest payment for use of the credit in day of loan granting is not allowed.

Responsibility of the borrower for untimely introduction of percent and payment for use of the credit can be provided in the loan agreement if the obligation of its payment is provided by the loan agreement.

Article 736-4. The borrower's obligation on return of credit amount

1. The borrower shall return to the creditor the received credit amount in terms and according to the procedure, provided by the loan agreement.

2. The borrower has the right to make early repayment of the credit irrespective of type of loan, the term of use and the amount on condition of the prior notice of it in thirty calendar days at any time.

3. If other is not provided by the loan agreement, the credit amount is considered to her creditor returned in date of transmission or transfers of the corresponding money on the bank account of the creditor.

Article 736-5. Ensuring obligation fulfillment of the borrower

1. Obligation fulfillment of the borrower according to the loan agreement can be provided with pledge, the guarantee, guarantee and different ways, stipulated by the legislation the Kyrgyz Republic.

The National Bank establishes the minimum requirements to providing on the credits of banks.

2. In case of failure to carry out by the borrower of the obligations provided by the loan agreement on ensuring return of credit amount, and also during the losing of providing or deterioration in its conditions on circumstances for which the creditor is not responsible the creditor has the right to demand from the borrower of early return of the remained outstanding amount on the credit if other is not provided by the loan agreement.";

8) Add the code with Chapter 34-1 of the following content:

"Chapter 34-1. Financing according to the Islamic principles of financing

§1. Agreement of mudarab

Article 738-1. General terms

1. Under the agreement of mudarab one party (investor) provides to other party (to mudarib - physical person or legal entity - the receiver of money) money for the subsequent investment on the purposes caused by the parties or at the discretion of mudarib for the purpose of generation of profit which is in proportion distributed between the parties in accordance with the terms of the agreement of mudarab.

2. The agreement of mudarab can be applied as for the purpose of attraction of money (to attract deposits), and for the purpose of placement of the funds raised under the agreement of mudarab.

3. The agreement of mudarab shall be signed in writing.

4. The bank having the corresponding license / certificate can be the agreement party of mudarab. At the same time for it compulsory provisions and requirements can be provided by regulatory legal acts of the Kyrgyz Republic.

5. Compulsory provisions and requirements to the agreement of mudarab can be provided by regulatory legal acts of the Kyrgyz Republic.

Article 738-2. Agreement types of mudarab

1. The agreement of mudarab can be signed in the following types:

1) the agreement of limited (special) mudarab under the terms of which the investor establishes asset types or objects for investment mudariby. At the same time on each asset / investment object the separate agreement between mudariby and the investor is signed;

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.