LAW OF THE REPUBLIC OF KAZAKHSTAN

of May 6, 2017 No. 62-VI ZRK

About collection activities

This Law governs the public relations connected with implementation of collection activities, establishes features of creation, activities of the collection agencies, and also determines features of state regulation of the collection agencies, control of their activities.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) debt on the agreement of bank loan or the agreement on provision of the microcredit (further - debt) - obligations of the debtor to the creditor on payment of principal debt, remuneration, the commissions, penalties (penalty, penalty fee) under the agreement of bank loan or the agreement on provision of the microcredit;

2) the debtor - the physical person or legal entity which allowed non-execution or improper execution of agreement obligations of bank loan or to the agreement on provision of the microcredit;

3) accounting registration - inclusion of the legal entity having intention to perform collection activities, in the register of the collection agencies;

4) the collection agency - the legal entity, being the commercial organization, included in the register of the collection agencies;

5) the register of the collection agencies - the single list of the collection agencies of authorized body in the field of collection activities;

6) collection activities - the activities of the collection agency directed to pre-judicial collection and settlement of the debt, and also to information collection connected with debt;

7) authorized body in the field of collection activities (further - authorized body) - state body on regulation, control and supervision of the financial market and the financial organizations;

8) the creditor - bank of the second level, branch of nonresident bank of the Republic of Kazakhstan, the organization performing separate types of banking activities, or the organization which is performing microfinancial activities, having right to claim against the debtor on debt;

9) service company - the affiliated organization for management of stressful assets, the collection agency having within the trust management agreement rights (requirements), powers on trust management of the rights (requirements) for the agreement of bank loan, the agreement on provision of the microcredit including in the relation:

changes of terms of the contract of bank loan, agreement on provision of the microcredit;

representations in court of interests of person with which the trust management agreement of the rights (requirements) is signed;

acceptance from the debtor of money and (or) other property;

other powers provided by this Law, other laws of the Republic of Kazakhstan and (or) the trust management agreement of the rights (requirements).

Article 2. Legislation of the Republic of Kazakhstan on collection activities

1. The legislation of the Republic of Kazakhstan on collection activities is based on the Constitution of the Republic of Kazakhstan, consists of the Civil code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. Operation of the laws of the Republic of Kazakhstan "About economic partnerships" and "About partnerships with the limited and accessorial liability" extends to the collection agencies in the part which is not settled by this Law.

3. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

Article 2-1. The main the purpose, tasks and the principles of state regulation in the field of collection activities

1. Main objective of state regulation in the field of collection activities is establishment of the legal basis of activities of the collection agencies.

2. The main objectives of state regulation in the field of collection activities are:

1) establishment of standards of activities of the collection agencies;

2) establishment of order of interaction of the collection agencies with the debtor and (or) his representative, and (or) the third party connected by obligations within the agreement of bank loan or the agreement on provision of the microcredit;

3) ensuring proper level of protection of the rights and legitimate interests of debtors and (or) their representatives, and (or) the third parties connected by obligations within the agreement of bank loan or the agreement on provision of the microcredit.

3. The basic principles of state regulation in the field of collection activities are:

1) transparency of activities of the collection agencies;

2) increase in standards, methods of regulation and control of activities of the collection agencies;

3) responsibility of the collection agencies.

Chapter 2. Creation and activities of the collection agency

Article 3. Collection agency

1. The collection agency is created in form of business of economic partnership.

2. The name of the collection agency shall contain the words "collection agency" without fail. Reducing the name of the collection agency is not allowed.

The name of the collection agency shall not contain the word "national" or "republican", or "central" in the complete or reduced type in any language.

The legal entity who is not included in the register of the collection agencies, having no right to perform collection activities, to characterize itself as engaged in collection activities, and also to use in the name the words "collection agency", words, derivative of them, assuming that it performs collection activities.

2-1. The collection agency shall not be affiliated to other collection agency according to article 12-1 of the Law of the Republic of Kazakhstan "About partnerships with the limited and accessorial liability".

3. Any person independently or together with another (others) person (persons) cannot (can not) own and use directly or indirectly, and (or) to dispose of ten or more percent of shares in the authorized capital of the collection agency or to have control if it:

1) did not open information on itself and physical persons who directly or indirectly own and (or) use, and (or) dispose of more than twenty five percent of shares in the authorized capital or placed (less exclusive and redeemed by society) shares of person specified in paragraph one of this Item, and it is equal about the physical persons exercising control over the specified person, to authorized body;

2) is the physical person having the outstanding or not removed criminal record;

3) is legal entity, the founder (the shareholder, the participant) or the leading employee of which was the first head or the founder (participant) of the collection agency during the period no more than in one year prior to adoption by authorized body of the decision on exception of the register of the collection agencies of this collection agency on the bases provided in subitems 1), 4), 5), 6), 7), 9) and 10) of part one of Item 1 of article 9 of this Law earlier;

4) has registration, the residence or the location in offshore zones which list is established by authorized body.

4. Founders of the collection agency shall pay completely the minimum size of the authorized capital of the created collection agency by the time of its state registration (re-registration).

The minimum size of the authorized capital of the collection agency is established by regulatory legal act of authorized body.

The authorized capital of the collection agency is created only by money in national currency of the Republic of Kazakhstan.

5. The collection agency shall pay compulsory contributions to office of the bank ombudsman in case of acquisition of rights (requirement) for the agreement of bank loan signed by bank, the organization performing separate types of banking activities with physical person.

The collection agency shall pay compulsory contributions to office of the microfinancial ombudsman in case of acquisition of rights (requirement) for the agreement on provision of the microcredit signed by the organization performing microfinancial activities with physical person.

Notes.

1. Indirect possession and (or) use, and (or) the order of shares in the authorized capital or placed (less exclusive and redeemed by society) shares of the legal entity for the purpose of this Law is understood as opportunity to determine decisions of the legal entity, persons or persons who jointly are the persons owning and (or) using, and (or) disposing of ten or more percent of shares in the authorized capital of the legal entity through ownership (vote) of shares (shares in the authorized capital) other legal entities.

2. Control over the legal entity (control) for the purpose of this Law is understood as opportunity to determine the decisions made by the legal entity.

Article 4. Bases of implementation of collection activities

1. Collection activities are performed based on the agreement which subject is rendering services to the creditor in pre-judicial collection and settlement of debt, and also on information collection, connected with debt (further - the agreement on debt collection).

The conclusion of the contract on debt collection with the creditors who are affiliates of the collection agency according to Item 2 of article 12-1 of the Law of the Republic of Kazakhstan "About partnerships with the limited and accessorial liability" is forbidden to the collection agency.

The collection agency is forbidden to sign the agreement (agreement) on conditions of execution of the executive document with the private legal executive who is the affiliate of the collection agency according to Item 2 of article 12-1 of the Law of the Republic of Kazakhstan "About partnerships with the limited and accessorial liability".

The collection agency is forbidden to address for making of notarial actions the notary who is the affiliate of the collection agency according to Item 2 of article 12-1 of the Law of the Republic of Kazakhstan "About partnerships with the limited and accessorial liability".

2. Collection activities are performed in case of debt and availability in the agreement of bank loan or the contract on provision of the microcredit of the right of the creditor for involvement of the collection agency in case of assumption by the borrower of delay of obligation fulfillment under the agreement of bank loan or the agreement on provision of the microcredit.

3. The contract on debt collection between the collection agency and the creditor consists in writing and shall contain, including the following conditions:

1) rights and obligations of the Parties;

2) responsibility of the parties;

3) data of the debtor - physical person, allowing to identify his personality;

4) the name, the location, business and identification number concerning the legal entity;

5) debt size;

6) structure of debt (amount of principal debt, remuneration, commissions, penalties (penalty, penalty fee);

7) in the presence of data on the guarantor or the guarantor under the agreement of bank loan or the agreement on provision of the microcredit;

8) in the presence of data on pledge subject if the pledge right under the agreement of bank loan or the agreement on provision of the microcredit is subject to registration;

9) amount of remuneration under the agreement;

10) duration of the agreement;

11) procedure and times for notification (informing) the collection agency by the creditor on the payments made earlier by the debtor and (or) about change of outstanding amounts;

12) procedure for provision of information by the collection agency on course of execution of the agreement on debt collection;

13) procedure and terms of agreement cancelation about debt collection in the case provided by the paragraph the fourth parts one of Item 5 of article 9 of this Law, and also procedure and terms of return of documents;

14) procedure and conditions of early termination of collection activities concerning the debtor.

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