On Development Bank of Kazakhstan

The Law of the Republic of Kazakhstan dated 25 April, 2001 No. 178

Unofficial translation

Chapter1. General provisions

Article 1. Development Bank of Kazakhstan and its status

      Development Bank of Kazakhstan (hereinafter – Development Bank) is a joint-stock company, the controlling block of stock of which belongs to the national administrating holding. Development Bank is the national institution of development.
      Footnote. Article 1 is in the wording of the Law of the Republic of Kazakhstan dated 07.07.2006 No. 178 (shall be enforced from the date of its official publication); as amended by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 2. Legal regulation of activity of the Development Bank

      1. The legislation on the Development Bank of Kazakhstan is based on the Constitution of the Republic of Kazakhstan, consists of this Law and other regulatory legal acts.
      2. Legislation of the Republic of Kazakhstan, regulating the activity of joint-stock companies, bank activity and the other licensable types of activity shall be applied to the Development Bank in a part not regulated by this Law and the Law of the Republic of Kazakhstan “On National Welfare Fund”.
      3. Investment priorities of the Development Bank, quantitative limitations on involvement of borrowed funds, limits, direction, possible conditions, order and terms of crediting, disposing of its own capital, co-financing, provision of warrants, performance of functions of attorney (agent) shall be established in the Memorandum on credit policy of the Development Bank (hereinafter – Memorandum), approved by the national administrating holding.
      Footnote. Article 2 as amended by the Laws of the Republic of Kazakhstan dated 11.06.2003 No. 434; dated 06.07.2004 No. 571 (shall be enforced from 01.01.2004); dated 23.12.2005 No. 108 (shall be enforced from the date of its official publication); dated 07.07.2006 No. 178 (shall be enforced from the date of its official publication); dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 3. Purposes and objectives of the Development Bank

      1. Purposes of the activity of the Development Bank shall be the perfection and increase of effectiveness of the state investment activity, development of producing infrastructure and processing industry, supporting in attracting of external and internal investments in the economy of the country.
      2. Objectives of the Development Bank shall be:
      1) financing of projects providing the investments and directed to creation of new, extension and renewal of existing productions, as well as to assets acquisition, blocks of shares (shares of participation), property complexes (hereinafter investment projects) by carrying out of actions prescribed by Article 7 of this Law (including purpose credit for banks, credit lines), on medium-term (on five years and more term) and long-term (on from ten to twenty years term) base, as well as transitional financing in purpose of provision of preparing and realization of investing projects (hereinafter – transitional financing);
      2) financing of the export operations with purpose of stimulation of export of works and services being performed by residents of the Republic of Kazakhstan, as well as export of products released in the territory of the Republic of Kazakhstan (hereinafter – export operations) by carrying out the operations provided by Article 7 of this Law (including purpose credits for banks, credit lines);
      3) provision of subordinated loan with a right for its conversion in stocks or shares of participation in capital of a borrower (hereinafter - mezzanines financing), project financing, financing of the current activity of borrowers within realization of projects being financed by the Development Bank;
      4) stimulation of crediting of economy of the Republic of Kazakhstan by issuance of warrant obligations on loans provided by the other credit institutions, as well as by co-financing, granting of credits for second-tier banks and banks – non-residents of the Republic of Kazakhstan (hereinafter - interbank crediting), organizations-leasing companies, as well as organizations carrying out particular types of banking transactions;
      5) perfection of mechanisms of financing of investing projects being realized by the Government of the Republic of Kazakhstan;
      6) the other objectives in accordance with the Laws of the Republic of Kazakhstan.
      Footnote. Article 3 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 4. Functions of the Development Bank

      1. Functions of the Development Bank are:
      1) selection and financing including the co-financing, of investment projects and export operation except for republican and local investment projects in accordance with the Memorandum;
      2) performance of functions of an attorney (agent) on serving of republican and local budget investing projects being financed on the returned base as well as projects being financed on account of loans secured by the state warrants and guarantees of the state;
      3) performance of bank expert examination of projects which are suggested to be financed on the returned base as the republican and local budget investing projects as well as projects suggested to financing on account of loans warranted by the state;
      4) monitoring of financial status of borrowers of the Development Bank and realization of republican and local investing projects served by the Development Bank as well as projects financed on account of loans secured by the state warrants and guarantees of the state;
      5) taking measures on ensuring performance of obligations by borrowers of the Development Bank;
      6) procurement, serving and repayment of non-state loans including the loans warranted by the state;
      7) performance of functions of an attorney (agent) on return of funds allocated from the republican budget due to performance of obligations on the state warrants, guarantees of the state and performance of the other debt obligations of legal entities by the Government of the Republic of Kazakhstan.
      2. Function provided by subparagraph 2) of paragraph 1 of this Article shall relate to exceptional competence of the Development Bank with the exception of cases of carrying out the budget crediting through the organizations specially established by the Government of the Republic of Kazakhstan.
      Footnote. Article 4 is in the wording of the Law of the Republic of Kazakhstan dated 11.06.2003 No. 434; as amended by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 5. Powers of the Development Bank

      The Development Bank shall have the right to:
      1) determine its credit policy in accordance with the Memorandum;
      2) determine a practicability of financing on returned base of investment project, export and leasing transactions according to results of the bank expert examination and analysis of creditworthiness of a borrower;
      3) attract experts and consultants for carrying out of bank expert examination;
      4) attract the borrowed funds as well as those from the republican and local budgets within limits determined in the Memorandum;
      4-1) allocate liquid funds including borrowed funds on internal and external markets of financial instruments within limits and in manner determined in the Memorandum;
      5) carry out the selection of investment projects with the exception of republican and local investing projects and crediting them including co-financing with account for limitations established in the Memorandum;
      6) issue own warrants, total volume of which shall be set in the Memorandum;
      7) act as the organizer and participant of borrowing with participation of native and foreign banks and the other financial institutions;
      8) act as the agent of legal entities included in the group of national administrative holding, on their financing.
      Footnote. Article 5 as amended by the Laws of the Republic of Kazakhstan dated 11.06.2003 No. 434; dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 6. Relationships of state bodies of the Republic of Kazakhstan with Development Bank

      1. The National Bank of the Republic of Kazakhstan within powers established by the legislation of the Republic of Kazakhstan shall carry out the control for performance of the legislation of the Republic of Kazakhstan by the Development Bank regulating the activity of financial organizations with the exception of regulatory legal acts on issues of prudential regulation of banks, bank conglomerates and reserve requirements, approval of administrative employees, classification of assets, conditional obligations and creation of provision (reserves) against them, requirements imposed for the order of formation of the system of risk management and internal control.
      2. Interference of the state bodies and their civil servants in the activity of the Development Bank in any form shall be prohibited with the exception of cases provided by the legislative acts of the Republic of Kazakhstan.
      Footnote. Article 6 is in the wording of the Law of the Republic of Kazakhstan dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 2. Activity of the Development Bank

Article 7. Operations of the Development Bank

      The Development Bank for performance of its functions shall carry out following banking and other operations in national and foreign currency without license:
      1) borrowing operations: provision of credits in monetary form on conditions of payment, time-bound and refundability for legal entities – residents or non-residents (upon condition of realization of investment projects and export operations directed to development of economy of country in accordance with the Memorandum);
      2) issuance of bank warrants providing the performance in the monetary form, for legal entities – residents or non-residents on debentures being issued within transactions of securitization;
      3) issuance of bank guarantees and other obligations for legal entities-residents or non-residents providing the performance in the monetary form;
      4) opening (setting) and acceptance letter of credit and performance of obligations on it;
      5) opening and maintenance of correspondent accounts of banks and organizations carrying out the particular types of bank operations;
      6) opening and maintenance of bank accounts of borrowers of the Development Bank including for enlistment of loans of the Development Bank, other loans and funds including the finances of the republican and local budgets for the purposes of making payments and transfers of money, money reservation for performance of obligations owed to the Development Bank provided by agreements concluded by the Development Bank within the served investment projects and operations;
      7) opening and maintenance of special accounts of conditional deposit, reserve accounts and the other accounts linked with the serving of republican and local budget investing projects being financed on the returned base as well as projects being financed on account of loans on a security of the state and the guarantees of the state in accordance with the agreements on agent serving (commission) and agreements on representation of interests of debentures holders;
      8) deposit taking, opening and maintenance of bank accounts for enlistment of funds in purpose of provision of obligations of legal entities-residents and (or) non-residents owed to the Development Bank;
      9) deposit taking, opening and maintenance of bank accounts of legal entities as well as banks in purpose of provision of liquidity of the Development Bank;
      10) carrying out of calculations by the order of legal entities-residents and (or) non-residents including borrowers of the Development Bank, banks-correspondents, organizations carrying out the particular types of bank operations on their bank accounts provided by subparagraphs 5)-9) of this Article;
      11) transfer operations: performance of commissions of legal entities-residents and (or) non-residents on payments and money transfers;
      12) acceptance of payment documents (with the exception of bills) for collection;
      13) dealing activity in accordance with the legislation of the Republic of Kazakhstan;
      14) lease activity;
      15) issue of equity securities;
      16) renting of own property;
      17) exchange transactions with foreign currency with the exception of operations with foreign currency in cash;
      18) activity of a financial consultant and underwriter on securities market in purpose conforming to the Memorandum;
      19) provision of mezzanine financing.
      Footnote. Article 7 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 8. Performance of bank expert examination by the Development Bank

      1. The Development Bank shall carry out bank expert examination of projects mentioned in subparagraph 3) of paragraph 1 of Article 4 of this Law.
      2. Conclusion of the Development Bank on results of expert examination of the investing project shall contain the implications on effectiveness of the project, creditworthiness and paying capacity of a borrower, provision of repayment of a loan, on form and conditions of financing as well as on practicability of financing the project on returned base.
      3. Consideration of investing project supposed to financing on returned base on account of funds of the state budget or loan warranted by the state shall be carried out in manner established by the legislation of the Republic of Kazakhstan in existence of favorable conclusion of the Development Bank on results of bank expert examination.
      4. Performance of expert examination of investing projects by the Development Bank shall be carried out on a contractual basis with account for limits determined in the Memorandum.
      Footnote. Article 8, as amended by the Law of the Republic of Kazakhstan dated 11 June, 2003 No. 434.

Article 9. Involvement and use of loans from the republican and local budgets by the Development Bank

      1. Procurement of loans from the republican and local budgets by the Development Bank shall be carried out exclusively on the basis of payment, urgency and refundability.
      2. Order and conditions of provision, use and repayment of loans received by the Development Bank from the republican and local budgets shall be determined by the legislation of the Republic of Kazakhstan.
      3. Loans involved from the republican and local budgets shall be used for crediting of projects by the Development Bank, selection of which shall be performed by it independently in accordance with the Memorandum.
      Footnote. Article 9 is in the wording of the Law of the Republic of Kazakhstan dated 11 June, 2003 No. 434.

Article 10. Performance of functions of attorney (agent) by the Development Bank

      1. The Development Bank shall perform functions of attorney (agent) on investing projects mentioned in subparagraph 2) of paragraph 1 of Article 4 of this Law in accordance with the agreements concluded by them.
      2. Financing of investing projects on which the Development Bank is an attorney (agent) on accounts of facilities of the republican and local budgets shall be carried out in accordance with budget legislation of the Republic of Kazakhstan and concluded agreements.
      3. On completion or early termination of realization of investing project, the Development Bank shall return remaining balance into the relevant budgets.
      4. The Development Bank shall perform the functions of attorney (agent) on loans provided by the state warrants or guarantees of the state attracted for financing of projects in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 10 is in the wording of the Law of the Republic of Kazakhstan dated 11.06.2003 No. 434; as amended by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 11. Monitoring of realization of investing projects served by the Development Bank

      1. The Development Bank in respect of investing projects served by it as attorney (agent) may carry out the monitoring as follows on a contractual basis:
      1) financing schedule of realization of projects;
      2) financing status of borrowers;
      3) factual performance of volumes of works, rendered services on realized projects.
      2. The Development Bank shall perform analyses of realization and financing of investing projects annually on a contractual basis served by it as attorney (agent) with conformance evaluation of the results to project technical and economic indices and shall represent the relevant conclusion in the authorized body on the state planning.
      Footnote. Article 11 is in the wording of the Law of the Republic of Kazakhstan dated 11.06.2003 No. 434; as amended by the Laws of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3); dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010).

Article 12. Provision of loans by the Development Bank

      1. Financing by the Development Bank shall be performed on conditions, in manner and terms determined by the Memorandum.
      Amount of a rate of remuneration on provided credits shall be calculated with account for average price of borrowing and operational expenses by the Development Bank.
      Competence of bodies of the Development Bank on taking decisions on financing shall be determined in the Memorandum and the charter of the Development Bank.
      2. Risks on realization of investing projects and operations being financed by the Development Bank as well as credit instruments being provided by the Development Bank shall be covered in accordance with requirements of the Memorandum as well as provided by the pledge, warrant and other ways of ensuring performance of obligations provided by the legislation of the Republic of Kazakhstan including the pledge of property being subject to receipt in future, property being beyond the boundaries of the Republic of Kazakhstan, rights of demand on the relevant property (property rights), insurance and any other on conditions and in manner determined by the board of directors of the Development Bank.
      Requirement of this paragraph in part of provision of ensuring the performance of obligations shall not apply to cases of providing loans by the Development Bank for organizations, the absolute share of participation in charter capitals (all stocks) of which is owned by the Development Bank, mezzanine financing, interbank crediting.
      3. Conditions and order of crediting and provision of ensuring the performance of the obligations of legal entities being included in the group of the national administrating holding and realizing the investing projects, the list of which is approved by the general shareholders meeting, shall be determined in accordance with the Memorandum.
      Upon determination of conditions of crediting and provision of ensuring the performance of obligations of legal entities being included in the group of the national holding, the prohibition on provision of conditions of exemption for persons linked with the bank by the special relations, and order of carrying out the transactions with the stated persons, established by the bank legislation of the Republic of Kazakhstan shall not be applied.
      4. Decision on carrying out of leasing activities by the Development Bank, on crediting of organizations in the charter capitals of which the Development Bank takes participation, issuance of warrants and guarantees on their obligations shall be approved by the board of directors of the Development Bank in accordance with the Memorandum.
      Footnote. Article 12 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (the order of enforcement see Article 3).

Article 13. Attracting of loans by the Development Bank

      1. The Development Bank shall carry out the borrowing with provision of repayment of loan by own assets or under the state warrants of the Republic of Kazakhstan.
      1-1. Debt securities issued by the Development Bank are the agents debentures from the moment of obtaining of status by it of financial agency in accordance with the legislation of the Republic of Kazakhstan on securities market.
      2. (Is excluded – dated 7 July, 2006 No. 178 (shall be enforced from the date of its official publication).
      3. The Development bank shall have a right to entrust all or part of activity linked with arrangement, redemption of securities and other bonds of obligations of the Development Bank and payment of reward on them to agents in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 11 June, 2003 No. 434; dated 20 December, 2004 No. 13 (shall be enforced from 1 January, 2005).

Article 14. Participation of the Development Bank in the charter capitals of legal entities

      1. In accordance with the Memorandum and the legislation of the Republic of Kazakhstan, the Development Bank shall participate in the charter capitals of legal entities in cases of:
      1) levy of execution on share of participation or stocks of the legal entities earlier formed by the Development Bank in gage with purpose of their further realization;
      2) participation of legal entities in the charter capital being created by the professional participants of the securities market (stock exchange, central depositary);
      3) participation of organization-leaseholders and other legal entities in the charter capitals under decision of the general shareholder meeting;
      4) participation of legal entities in the charter capitals within the financing of investing projects as well as in the charter capitals of borrowers upon the mezzanine financing.
      2. The Development Bank shall have the right to determine independently a necessity of existence of independent directors in the bodies of administration of organizations with absolute participation of the Development Bank in the charter capital.
      Footnote. Article 14 is in the wording of the Law of the Republic of Kazakhstan dated 11.06.2003 No. 434; as amended by the Laws of the Republic of Kazakhstan dated 23.12.2005 No. 108 (shall be enforced from the date of its official publication); dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 15. Limitation of the activity of the Development Bank

      The Development Bank shall be prohibited to:
      1) issue credits to individuals, credit cooperatives, administrating investment portfolio with a right of attracting willful retirement investments, investing funds, insurance organizations as well as bank warrants, guarantees and the other obligations providing the performance in monetary form, on their obligations;
      2) attract deposits of individuals and open bank accounts for individuals;
      3) provide loans without provision of their repayment with the exception of cases provided by this Law;
      4) carry out the cash serving of individuals;
      5) carry out additional external and internal borrowing upon existence of overdue (more than one year) obligations on earlier attracted loans.
      Footnote. Article 15 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3); as amended by the Law of the Republic of Kazakhstan dated 21.06.20013 No. 106-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 3. Capital of the Development Bank

      Footnote. Title of Chapter 3 as amended by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Article 16. Charter capital of the Development Bank

      1. Charter capital of the Development Bank shall consist of no less than two hundred and fifty billion tenge.
      2. For purpose of provision of financial stability of the Development Bank, the Government of the Republic of Kazakhstan shall determine the characteristics of financial stability (rates) of the Development Bank, their threshold values and the method of calculation.
      Upon expected change of characteristics of the financial stability (rates) in part of deterioration and achievement of threshold values as minimum on one of the characteristics (rates), as well as in other cases established by the legislation of the Republic of Kazakhstan, the charter capital of the Development Bank in accordance with procedures established by the budget legislation of the Republic of Kazakhstan may be increased.
      3. The charter capital of the Development Bank shall be used in purposes of:
      1) crediting in accordance with the Memorandum and with account for limits established by subparagraph 1) of Article 15 of this Law. Maximum correlation of the loan portfolio to assets shall be established by the Memorandum;
      2) investing on internal and external markets of the financial instruments in accordance with the Memorandum as well as for assets acquisition (shares of participation) in accordance with paragraph 1 of Article 14 of this Law.
      Footnote, Article 16 is in the wording of the Law of the Republic of Kazakhstan dated 19.03.2014 No. 179-V (shall be enforced from the date of its first official publication).

Article 17. Formation of provisions (reserves) by the Development Bank

      Footnote. Article 17 is excluded by the Law of the Republic of Kazakhstan dated 28.12.2011 No.524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 18. Dividend policy

      Dividend policy of the Development Bank shall be determined by the shareholder meeting.
      Footnote. Article 18 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Chapter 4. Record, reporting and independent audit of the Development Bank

Article 19. Record policy of the Development Bank

      1. The record policy of the Development Bank shall be approved by the board of directors of the Development Bank.
      2. Maintenance of business accounting and preparation of the financial reporting shall be carried out by the Development Bank in accordance with the legislation of the Republic of Kazakhstan on business accounting and the international standards of the financial reporting.
      Footnote. Article 19 as amended by the Laws of the Republic of Kazakhstan dated 06.07.2004 No. 571 (shall be enforced from 01.01.2004); dated 13.02.2009 No. 135-IV (order of enforcement see Article 3); dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 20. Reporting

      The Development Bank shall represent the reporting:
      1) on expenses of money of the republican budget – to the authorized body on performance of the budget on a monthly basis;
      2) on expenses of money of the local budgets – to the local executive bodies of oblasts (city of republican significance, the capital) on a monthly basis;
      3) on installation of borrowed funds allocated for the Development Bank from the republican budget, to the authorized body on the state planning from the local budgets – to the relevant local executive bodies of oblasts (city of republican significance, the capital) on a monthly basis;
      4) is excluded by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).
      Footnote. Article 20 as amended by the Laws of the Republic of Kazakhstan dated 11.06.2003 No. 434; dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); dated 13.02.2009 No. 135-IV (order of enforcement see Article 3); dated 24.11.2011 No. 495-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 21. Audit of the Development Bank

      1. The audit (external audit) of activity of the Development Bank shall be carried out by the audit organization elected in the manner determined by the general shareholder meeting on an annually basis.
      2. Is excluded by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).
      3. Annual financial reporting of the Development Bank shall be considered and approved by the general shareholder meeting on accomplishment of the audit.
      Footnote. Article 21 as amended by the Laws of the Republic of Kazakhstan dated 11.06.2003 No. 434; dated 05.015.2006 No. 139 (order of enforcement see Article 3 of the Law of the Republic of Kazakhstan No. 139); dated 13.02.2009 No. 135-IV (order of enforcement see Article 3).

Chapter 5. Management of the Development Bank

Article 22. Shareholders of the Development Bank

      (Is excluded – dated 7 July, 2006 No. 178 (shall be enforced from the date of its official publication).

Article 23. Bodies of the Development Bank

      1. The bodies of the Development bank are:
      1) the supreme body – the general shareholder meeting;
      2) the body of administration – the board of directors;
      3) the executive body - head office;
      4) other bodies in accordance with the legislation of the Republic of Kazakhstan and the charter of the Development Bank.
      2. Functions, powers and order of activity of the bodies of the Development Bank shall be determined by this Law, the other regulatory legal acts of the Republic of Kazakhstan and the charter of the Development Bank.
      Footnote. Article 23 as amended by the Laws of the Republic of Kazakhstan dated 06.07.2004 No. 571) shall be enforced from 01.01.2004); dated 13.02.2009 No. 135-IV (order of enforcement se Article 3).

Article 24. Board of directors

      1. Members of the board of directors including the chairman of the board of directors shall be elected without coordination with the National Bank of the Republic of Kazakhstan.
      2. Order of election and powers of the board of directors shall be determined in accordance with the legislation of the Republic of Kazakhstan and the charter of the Development Bank.
      Footnote. Article 24 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3); as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 25. Head office

      1. The head office is a collegiate body and shall carry out the administration of current activity of the Development Bank.
      The chairman and members of the head office shall be elected without coordination with the National Bank of the Republic of Kazakhstan.
      The head office shall be headed by the chairman of the head office.
      The head office shall have a right to make decisions on any questions of activity that are not related to the competence of other bodies and civil servants of the Development Bank by the Laws of the Republic of Kazakhstan and the charter of the Development Bank.
      2. Order of election of the head office shall be determined in accordance with the legislation of the Republic of Kazakhstan and the charter of the Development Bank.
      Footnote. Article 25 is in the wording of the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (order of enforcement see Article 3); as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 6. Additional provisions

Article 26. (Is excluded – by the Law of the Republic of Kazakhstan dated 13 December, 2004 No. 11 (shall be enforced from 1 January, 2005).

Article 27. Responsibility of the Development Bank and order of conflicts resolution

      1. The Development Bank shall bear responsibility for non-performance of its obligations on the grounds and in manner provided by the legislation of the Republic of Kazakhstan.
      2. All conflicts arising between the Development Bank, local executive bodies of oblasts (city of republican significance, the capital), state bodies, legal entities on performance of this Law shall be solved in accordance with the legislation of the Republic of Kazakhstan.
      3. Persons being guilty in the breach of this Law shall bear responsibility in accordance with the legislative acts of the Republic of Kazakhstan,
      Footnote. Article 27 as amended by the Law of the Republic of Kazakhstan dated 20 December, 2004 No. 13 (shall be enforced from 1 January, 2005).

Article 28. Restricted measures of influence

      In cases of detecting the violations of requirements of the legislation of the Republic of Kazakhstan by the National Bank of the Republic of Kazakhstan on issues, the regulation of which is included in its competence, the National Bank of the Republic of Kazakhstan shall apply the one of the following restricted measures of influence with regard to the Development Bank:
      1) issue the written prescription on elimination of detected defaults in the established terms being compulsory for performance;
      2) require the letter-obligation;
      3) conclude written agreement with the Development Bank.
      The Development Bank shall be obliged to inform the National Bank of the Republic of Kazakhstan on performance of written prescription, letter-obligation or the written agreement in terms established in there.
      Footnote. Chapter 6 is supplemented by Article 27 in accordance with the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      The President
      of the Republic of Kazakhstan