On compulsory insurance of deposits, placed in second-tier banks of the Republic of Kazakhstan

The Law of the Republic of Kazakhstan dated 7 July, 2006 No. 169

Unofficial translation

      The Law is aimed at protection of the rights of depositors - individuals and defines the legal basis for functioning of the system of compulsory insurance of deposits, placed in second-tier banks of the Republic of Kazakhstan, except interest free demand deposits and investment deposits, placed in Islamic banks, the order of creation and activities of the organization, performing compulsory deposit insurance, participation of second-tier banks in the system of compulsory deposit insurance, as well as other aspects of the relationship of the participants of the system.

      Footnote. Preamble, as amended by the Law of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Art. 2).

Chapter 1. GENERAL PROVISIONS

Article 1. The basic definitions, used in the Law

      The following basic definitions are used in the Law:
      1) agent bank - a bank that is a member of the compulsory insurance of deposits and performing a procedure for the payment of guaranteed compensation to depositors on the basis of an agreement, concluded with the organization, carried out the compulsory deposit insurance;
      2) bank – a second-tier bank;
      3) system of compulsory insurance of deposits - a complex of organizational and legal measures, stipulated by the Law, aimed at protection of the rights and legal interests of depositors of the banks-participants;
      4) contributions - payments of the banks-participants of the organization, performing the compulsory insurance of deposits, paid in accordance with the requirements of the Law;
      5) a guaranteed deposit - the deposit that is the subject of the compulsory deposit insurance in accordance with the Law;
      6) guaranteed compensation - the amount of money, payable to the depositor by the organization, performing the compulsory deposit insurance on the insured deposits in accordance with the Law;
      7) bank-participant - a bank that is a participant of the system of compulsory deposit insurance, the liabilities of which in return of deposits are guaranteed in accordance with the Law;
      8) certificate of a bank-participant - a document, issued by the organization, performing the compulsory deposit insurance, to the bank - participant and certifying its participation in the system of compulsory deposit insurance;
      9) contract of adhesion – a contract of adhesion of the bank to the system of compulsory deposit insurance, the terms of which are determined by the organization, performing the compulsory deposit insurance, and shall be the standard for all banks, joining in the system;
      10) Authorized body - the National Bank of the Republic of Kazakhstan.
      Footnote. Article 1, 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 2. Legislation of the Republic of Kazakhstan on compulsory insurance of deposits

      1. Legislation of the Republic of Kazakhstan on compulsory insurance of deposits is based on the Constitution of the Republic of Kazakhstan and consists of the Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. If the international treaty, ratified by the Republic of Kazakhstan established the other rules than those provided by this Law, the rules of international treaty shall be applied.

Article 3. Purposes and principles of the system of compulsory insurance of deposits

      1. The purpose of the system of compulsory insurance of deposits is to ensure the stability of the financial system, including the maintenance of confidence in the banking system through the payment of guaranteed compensation to depositors in case of a forced liquidation of the bank-participant.
      2. The basic principles of the system of compulsory insurance of deposits are:
      1) mandatory participation of banks, engaged in accepting deposits, opening and maintaining of bank accounts of individuals, in the system of compulsory insurance of deposits;
      2) provision of the transparency of the system of compulsory insurance of deposits;
      3) reduction of risks, associated with the functioning of the system of compulsory insurance of deposits;
      4) cumulative nature of the formation of a special reserve, intended for the payment of the guaranteed compensation.

Chapter 2. LEGAL STATUS OF ORGANIZATIONS, ENGAGED IN COMPULSORY INSURANCE OF DEPOSITS AND ITS ACTIVITIES

Article 4. Creation of organization, engaged in compulsory insurance of deposits

      1. The organization, engaged in compulsory insurance of deposits, is a nonprofit organization, created in the organizational and legal form of a joint stock company and operating on the basis of this Law and other regulatory legal acts of the Republic of Kazakhstan and the Charter.
      2. Founder - the sole shareholder of the organization, engaged in compulsory insurance of deposits, shall be the authorized body.
      Footnote. Article 4, 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 5. The main tasks and functions of the organization, engaged in compulsory insurance of deposits

      1. The main tasks of the organization, engaged in compulsory insurance of deposits shall be:
      1) the participation in ensuring the stability of the financial system;
      2) the protection of the rights and legal interests of the depositors of guaranteed deposits, in case of the forced liquidation of a bank-participant.
      2. The organization, engaged in compulsory insurance of deposits shall carry out the following functions to perform the main tasks:
      1) to pay the guarantee compensation in accordance with the requirements of the Law;
      2) to maintain a register of banks-participants in the system of compulsory insurance of deposits;
      3) to invest its own assets;
      4) to form a special reserve, intended for payment of the guarantee compensation;
      5) to select on a competitive basis the agent bank;
      6) to participate in the temporary administration, appointed to the period of conservation of a bank-participant;
      7) to participate in the composition of the temporary administration, appointed to the period of deprivation of the bank-participant license for performance of all banking operations;
      8) to participate in the composition of the liquidation commission of forcibly liquidated bank-participant, until repayment of the debt by the liquidation commission to the organization, engaged in compulsory insurance of deposits, on the amount of guaranteed compensation paid (shall be paid) by it;
      9) to participate in the composition of the creditors committee of forcibly liquidated bank-participant, until repayment of the debt by the liquidation commission to the organization, engaged in compulsory insurance of deposits, on the amount of guaranteed compensation, paid (shall be paid) by it;
      Footnote. Article 5, as amended by the Law of the Republic of Kazakhstan dated 12 January, 2007 No. 222 (shall be enforced upon expiry of six months from the date of its official publication).

Article 6. Guarantees of the organizations, engaged in compulsory insurance of deposits

      1. The organization, engaged in compulsory insurance of deposits assumes the obligation to pay the guaranteed compensation to depositors of a bank-participant from the date of the entry into force of the court decision on its compulsory liquidation.
      2. Obligations of the organization, engaged in compulsory insurance of deposits for the payment of guarantee compensation to depositors shall be ceased upon expiry of one year from the date of entry of the data in the National Register of business identification numbers on the forced liquidation of the bank-participant, but not earlier than five years from the date of entry into force of the court decision on compulsory liquidation of the bank-participant.
      Footnote. Article 6, as amended by the Law of the Republic of Kazakhstan dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 7. Rights and obligations of the organization, engaged in compulsory insurance of deposits

      1. The organization, engaged in compulsory insurance of deposits shall have the right to:
      1) require the payment of contributions by banks-participants;
      2) request from the banks-participants the data on accepted deposits, that do not contain the information, constituting bank or other secrets, protected by the Law;
      3) is excluded 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);
      4) receive from the authorized body the information, necessary to ensure functioning of the system of compulsory insurance of deposits, including the information on the financial status of the banks-participants, in accordance with Article 9 of the Law;
      5) provide loans to the bank-participant in the case, provided for in Article 16 of the Law;
      6) place money on deposit at the bank-participant in accordance with the requirements of the legislation of the Republic of Kazakhstan;
      7) borrow in the case, provided for in Article 23 of the Law;
      8) require the timely submission by the liquidation commission of the bank-participant of a depositors list on the guaranteed deposits, as well as the calculation of the guaranteed compensation for the guaranteed deposits;
      9) apply to the authorized body on the application of measures and sanctions to the bank-participant in case of its violation of the requirements of the legislation of the Republic of Kazakhstan on compulsory insurance of deposits.
      2. The organization, engaged in compulsory insurance of deposits shall:
      1) determine the conditions of the contract of adhesion;
      2) monitor the completeness and timeliness of payment of contributions by the banks-participants;
      3) pay the guaranteed compensation to depositors of the forcibly liquidated bank-participant in the manner, provided in the Law;
      4) use solely for business purposes the all information on the banks-participants and their depositors, become known to it in the performance of its functions;
      5) notify the authorized body of any violations of the legislation of the Republic of Kazakhstan on compulsory insurance of deposits by the banks-participants;
      6) provide depositors with the information, provided for in Article 21 of the Law;
      7) maintain the separate accounting of assets of the special reserve and own assets.
      Footnote. Article 7, as amended by the Laws 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); dated 05.12.2013 No. 152-V (shall be enforced from 01.01.2014).

Article 8. Basis for interaction of the National Bank of the Republic of Kazakhstan and the organization, engaged in compulsory insurance of deposits

      Footnote. Article 8 is excluded 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 9. Basis for interaction of the authorized body and the organization, engaged in compulsory insurance of deposits

      1. The authorized body and the organization, engaged in compulsory insurance of deposits, shall coordinate their activities, agree on received documents and inform each other about the activities on the compulsory insurance of deposits.
      2. For the purpose of proper and timely execution of its functions the organization, engaged in compulsory insurance of deposits, receives from the authorized body the information, necessary to ensure functioning of the system of compulsory insurance of deposits, the procedure for the provision of which is determined by agreement between the authorized body and the organization, engaged in compulsory insurance of deposits.
      3. In the case, provided for in the Law, the organization, engaged in compulsory insurance of deposits, shall have the right to obtain loans from the authorized body.
      4. The authorized body determines the amount, the order and periods for submission of the financial statements of the organization, engaged in compulsory insurance of deposits, as well as the procedure for investing its assets.
      Footnote. Article 9, 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 10. The entry of banks in the system of compulsory insurance of deposits

      1 To enter the system of compulsory deposit insurance, the bank shall, no later than the day following the day of receipt of the license of the authorized body to accept deposits, opening and maintaining of bank accounts of individuals, present to the organization, engaged in compulsory insurance of deposits, a notarized copy of such license.
      2. Bank, entering into the system of compulsory deposit insurance, on the day of obtaining the license of the authorized body on acceptance of deposits, opening and maintaining of bank accounts of individuals, shall accede to the contract of adhesion by submitting the organization, engaged in compulsory deposit insurance, applications, drawn up in the form, prescribed by the regulatory legal acts of the authorized body.
      In case of failure to present by the bank, entering into the system of compulsory deposit insurance, an application for accession to the contract of adhesion, the organization, engaged in compulsory deposit insurance shall, within two working days, inform about this fact the authorized body.
      3. The authorized body shall consider the application of sanctions to the bank that does not submit an application for accession to the contract of adhesion, in accordance with the requirements of the legislation of the Republic of Kazakhstan.
      4. The organization, engaged in compulsory deposit insurance, within two working days of the receipt of the bank application for its accession to the contract of adhesion, shall issue a certificate of a bank-participant.
      Certificate of a bank-participant shall be issued on the day of publication of information in the register of banks-participants in the system of compulsory deposit insurance.
      5. Bank becomes a participant of the compulsory deposit insurance from the day of entry the information in the register of banks-participants in the system of compulsory deposit insurance.
      6. The organization, engaged in compulsory deposit insurance, maintains records of the issued and annulled certificates of bank-participants by entering the relevant information in the register of banks-participants in the system of compulsory deposit insurance.
      7. Register of banks-participants in the system of compulsory deposit insurance shall be quarterly published by the organization, engaged in compulsory deposit insurance, in periodicals that are distributed throughout the territory of the Republic of Kazakhstan in State and Russian languages.

Article 11. Contract of adhesion

      1. Accession of the bank to the contract of adhesion is a mandatory condition for its participation in the system of compulsory deposit insurance.
      2. Contract of adhesion shall contain:
      1) full name of the organization, engaged in compulsory deposit insurance, information on the place of its location and bank details;
      2) an indication of the subject of the contract;
      3) the rights and obligations of the parties;
      4) the procedure for the payment of contributions;
      5) the order of providing the information by the bank-participant, necessary for the organization, engaged in compulsory deposit insurance, to perform its duties and functions;
      6) the procedure for calculation by the banks-participants of their obligations under the guaranteed deposits and amounts, recoverable from them by the organization, engaged in compulsory deposit insurance in case of the forced liquidation of the bank-participant;
      7) conditions for termination of the contract;
      8) conditions on the responsibility of the parties for breach of the contract, including the right of the organization, engaged in compulsory deposit insurance, without further notice to withdraw from the bank accounts of the bank-participant of amounts, not paid in full or in part contributions, as well as forfeit for non-performance by the bank-participant of the obligations under the contract.
      3. Contract of adhesion shall take effect from the moment of entry the information in the register of banks-participants in the system of compulsory deposit insurance, and shall be ceased in case of exclusion of the bank-participant from the system of compulsory deposit insurance.

Article 12. Types and order for payment of contributions of the banks-participants

      1. Bank-participant shall, in accordance with the Law and the contract of adhesion, pay the organization, engaged in compulsory deposit insurance, the following contributions:
      1) mandatory calendar contributions - quarterly payments of the banks-participants;
      2) additional contributions - one-time payments of the banks-participants, paid in case of insufficiency of the special reserve of the organization, engaged in compulsory deposit insurance, for the payment of guaranteed compensation;
      3) extraordinary contributions - payments of the banks-participants for the full repayment of the loan, received by the organization, engaged in compulsory deposit insurance, in the manner prescribed in Article 23 of the Law, and calculated compensation.
      Returns of extraordinary contributions shall not suspend the obligation of the banks-participants to make compulsory calendar contributions.
      2. The amount and order of payment of contributions by the bank-participant shall be determined by the governing body of the organization, engaged in compulsory deposit insurance.
      The amount of mandatory calendar contribution of the bank-participant shall not exceed 0.5 per cent of the amount of the guaranteed deposits of the bank-participant as of the first day of the month, following the reporting quarter.
      Amount of additional contribution of the bank-participant shall not exceed the double amount of mandatory calendar contribution, payable by the said bank-participant to the organization, engaged in compulsory deposit insurance for the previous quarter.
      Annual amount of extraordinary contributions of the bank-participant shall not exceed the annual amount of mandatory calendar contributions, payable on a quarterly basis by the said bank-participant to the organization, engaged in compulsory deposit insurance.
      3. From the date of deprivation of the bank-participant license to carry out banking operations, the all obligations of the bank-participant in the payment of contributions shall be suspended before the entry into force of the court decision on compulsory liquidation of the bank.
      4. The contributions, paid by the banks-participants in accordance with the contract of adhesion, shall be non-refundable.
      Footnote. Article 12, as amended by the Law of the Republic of Kazakhstan dated 12 January, 2007 No. 222 (shall be enforced upon expiry of six months from the date of its official publication).

Article 13. Rights and obligations of the bank-participant

      1. The bank-participant shall have the right to:
      1) receive from the organization, engaged in compulsory deposit insurance, the information on the rates of contribution and terms of payment, as well as other information on the issues of compulsory deposit insurance that do not contain the information constituting bank or other secrets protected by the law;
      2) participate in the competition for the selection of an agent bank;
      3) spread in mass media the information about its participation in the system of compulsory deposit insurance.
      2. The bank-participant shall:
      1) promptly and in full, pay contributions in accordance with the Law;
      2) inform customers about its participation in the system of compulsory deposit insurance with indication of the number and date of issue of the certificate of the bank-participant, as well as the conditions of payment of the guaranteed compensation;
      3) notify the organization, engaged in compulsory deposit insurance, on the occurrence of a situation that entails the impossibility of complete and timely fulfillment of obligations to repay the guaranteed deposits, within five calendar days from the date of occurrence of such a situation;
      4) provide the organization, engaged in compulsory deposit insurance, the information confirming the correctness of the calculations on their paid contributions;
      5) provide on request of the organization, engaged in compulsory deposit insurance, other information on the accepted deposits that do not contain the information, constituting bank or other secrets, protected by the law.
      3. The liquidation commission of the bank-participant shall, within seven working days from the date of entry into force of the court decision on the forced liquidation of the bank-participant, provide the organization, engaged in compulsory deposit insurance, the list of depositors in guaranteed deposits, as well as the calculation of the guaranteed compensation on the guaranteed deposits, compiled on the date of entry into force of the court decision.

Article 14. Consequences of changing the name of the bank-participant

      1. The bank-participant notifies in writing the organization, engaged in compulsory deposit insurance, on changing its name within five working days from the date of receipt of the certificate on the state re-registration.
      2. In case of changing the name of the bank-participant, the organization, engaged in compulsory deposit insurance, within ten working days of receipt from the bank-participant of supporting documents, shall replace the certificate of the bank-participant with corresponding changes in the register of banks-participants in the system of compulsory deposit insurance. In this case, the previously issued such a bank certificate of the bank-participant shall be canceled.
      Footnote. Article 14, as amended by the Law of the Republic of Kazakhstan dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 15. Exclusion of the bank-participant from the system of compulsory deposit insurance

      1. The grounds for exclusion of the bank-participant from the system of compulsory deposit insurance shall be:
      1) revocation of the license of the bank-participant by the authorized body for acceptance of deposits, opening and maintaining of bank accounts of individuals;
      2) termination of activity of the bank-participant through reorganization or liquidation;
      3) voluntary return by the bank-participant to the authorized body the license for acceptance of deposits, opening and maintaining of bank accounts of individuals.
      2. The bank-participant shall be excluded from the system of compulsory deposit insurance:
      1) in the revocation of the license of the bank-participant by the authorized body for acceptance of deposits, opening and maintaining of bank accounts of individuals - from the date of entry into force of the decision of the authorized body on the revocation of the license;
      2) in the forced reorganization or liquidation of the bank-participant - from the date of entry into force of the court decision on the forced reorganization or liquidation of the bank-participant;
      3) in the voluntary reorganization or liquidation of the bank-participant - from the date of permission of the authorized body for voluntary reorganization or liquidation of the bank-participant;
      4) in the voluntary return by the bank-participant to the authorized body the license for acceptance of deposits, opening and maintaining of bank accounts of individuals - from the date of entry into force of the decision of the authorized body on the termination of the license in connection with its voluntary return.
      3. Exclusion of the bank-participant from the system of compulsory deposit insurance shall be carried out by entering in the register of banks-participants in the system of compulsory deposit insurance the records on the cancellation of the certificate of the bank-participant.
      4. Exclusion of the bank-participant from the system of compulsory deposit insurance shall not stop the obligations of the organization, engaged in compulsory deposit insurance, on the guaranteed deposits, placed at the bank-participant to the day of its exclusion.
      With the exclusion of the bank-participant from the system of compulsory deposit insurance on the grounds of revocation of the license by the authorized body for acceptance of deposits, opening and maintaining of bank accounts of individuals, as well as the voluntary reorganization of the bank, excluded from the system, within three months from the date of exclusion, it shall return the deposits of individuals through their direct payments or by transferring them to another bank-participant, taking into account the requirements of the legislation of the Republic of Kazakhstan.
      With the exclusion of the bank-participant from the system of compulsory deposit insurance on the grounds, specified in subparagraphs 2) (except in case of forced liquidation of the bank-participant) and 4) of paragraph 2 of this Article, the bank, excluded from the system, is obliged to return the deposits in accordance with the requirements of the legislation of the Republic of Kazakhstan.
      Footnote. Article 15, as amended by the Laws of the Republic of Kazakhstan dated 12.01.2007 No. 222 (shall be enforced upon expiry of six months from the date of its official publication); dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2).

Article 16. Features of simultaneous transfer of the part of obligations under the guaranteed deposits and assets of the forcibly liquidated bank

      Footnote. Title of Article 16, as amended by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2).

      1. In order to protect the depositors’ interests the simultaneous transfer of assets and obligations of the bank in part or in full amount before the individuals and (or) legal entities to other bank(s) is performed, and the order of which is determined by the banking legislation of the Republic of Kazakhstan.
      2. In the course of the operation, referred to in paragraph 1 of this Article, the temporary administration of the bank (temporary administrator of the bank) at the stage of conservation, by the temporary administration (temporary administrator) of the bank prior to the entry into force of the court decision on the forced liquidation of the bank, the organization, engaged in compulsory deposit insurance, shall have the right to grant loans or make deposits in the bank (s) - the participant(s), accepted obligations on the guaranteed deposits, the features and procedures for granting or their placement are determined by regulatory legal acts of the authorized body.
      3. If the amount of obligations on the guaranteed deposits, transferred in accordance with paragraph 1 of this Article exceeds the amount of the bank’s assets, the organization, engaged in compulsory deposit insurance, shall have the right to fill the difference arisen due to the special reserve funds.
      4. The amount of funds, transferred by the organization, engaged in compulsory deposit insurance, in accordance with paragraphs 2 and 3 of this Article shall not exceed the amount, payable as the guaranteed compensation, determined in accordance with Article 18 of the Law.
      Footnote. Article 16, as amended by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2); dated 28.12.2011 No. 524-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 5. OBJECTS OF THE COMPULSORY DEPOSITS INSURANCE. THE AMOUNT AND ORDER OF PAYMENT OF THE GUARANTEED COMPENSATION

Article 17. Objects of compulsory deposit insurance

      Objects of compulsory deposit insurance are the obligations of the bank-participant to return in case of its forced liquidation of the deposits of individuals in tenge and foreign currency without charging them fees, located in bank accounts, and certified by the contracts of bank account and (or) bank deposit, and (or) supplementary documents.

Article 18. Guaranteed compensation

      Note of the RCLI!
      Shall be enforced from 01.01.2012.

      In case of forced liquidation of the bank-participant, the organization, engaged in compulsory deposit insurance, shall pay depositors for guaranteed deposits a guaranteed compensation in the amount of the balance of the deposit without accrued on the deposit fee, but not more than five million tenge.
      Footnote. Article 18, as amended by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see Art. 2); dated 28.12.2011 No. 524-IV (shall be enforced from 01.01.2012).

Article 19. Rights of depositors for guarantee compensation

      1. Depositor shall have the right to receive guarantee compensation under the guaranteed deposits in the amount and in the manner prescribed by the Law.
      Note of the RCLI!
      Paragraph 2 shall be enforced from 01.01.2012
      2. In case of the opening of a depositor in the bank-participant of several guaranteed deposits of different types and currencies, the organization, engaged in compulsory deposit insurance shall pay them compensation in the total guarantee amount, not exceeding five million tenge.
      3. In the opening by a depositor of deposits in several banks-participants, the organization, engaged in compulsory deposit insurance, shall pay a guaranteed compensation separately for each bank-participant.
      4. Payment of the guaranteed compensation for guaranteed deposits shall be in the national currency of the Republic of Kazakhstan. For the calculation of the guaranteed compensation on deposits in foreign currency, the market exchange rate on the date of entry into force of the court decision on compulsory liquidation of the bank-participant shall be used.
      Footnote. Article 19, as amended by the Law of the Republic of Kazakhstan dated 23.10.2008 No. 72-IV (the order of enforcement see. Art. 2); dated 28.12.2011 No. 524-IV (shall be enforced from 01.01.2012).

Article 20. Agent bank

      1. Payment of guaranteed compensation shall be made by ??the organization, engaged in compulsory deposit insurance through an agent bank (agent banks), selected on a competitive basis among the banks-participants.
      The order of competition for the selection of an agent bank and the requirements for the agent bank shall be established by the regulatory legal act of the authorized body.
      2. In case if none of the banks-participants do not meet the requirements for the agent bank the organization, engaged in compulsory deposit insurance shall pay guaranteed compensation through the National postal operator.

Article 21. The order for payment of guaranteed compensation

      1. The organization, engaged in compulsory deposit insurance, within fourteen working days from the date of entry into force of the court decision on forced liquidation of the bank-participant shall inform through publication in periodicals, distributed throughout the territory of the Republic of Kazakhstan, on the state and Russian languages ??on forced liquidation of the bank-participant and the early payment of the guaranteed compensation, indicating the name of the agent bank (or the National postal operator in case of failure to select an agent bank), making payments of the guaranteed compensation, period and location (s) of payment or deferment of payment of the guaranteed compensation in the case, provided for in Article 23 of the Law.
      In case of delayed payment of the guaranteed compensation, the organization, engaged in compulsory deposit insurance, additionally inform depositors about the beginning, the period, location (s) and conditions of payment by the publication in periodicals that are distributed throughout the territory of the Republic of Kazakhstan, on the state and Russian languages.
      Depositor is entitled to receive this information directly from the organization, engaged in compulsory deposit insurance.
      2. Depositor of the forcibly liquidated bank-participant within six months from the date of the announcement of the beginning the payment of the guaranteed compensation may apply to the agent bank with a written application on the payment of his (her) guaranteed compensation, which shall be accompanied by copies of the contract of the bank account and (or) bank deposit, and (or) supplementary documents and their copies. Payment of the guaranteed compensation shall be made by the agent bank only upon submission by the depositor of the document, proving his (her) identity.
      3. Upon confirmation of claims of the depositor to the forcibly liquidated bank-participant, the agent bank shall pay the guaranteed compensation no later than five working days after receipt of the documents to the agent bank.
      4. Upon expiry of six months, the depositor shall be entitled to apply for the guaranteed compensation to the organization, engaged in compulsory deposit insurance.
      5. If the forcibly liquidated bank-participant acted in relation to the depositor as a lender or guarantor, the amount of the guaranteed compensation shall be determined based on the amount of the difference, that is formed as a result of offsetting the amount of the guaranteed deposits and the amount of counter-claims of the bank-participant.

Article 22. Special reserve of the organization, engaged in compulsory deposit insurance

      1. For activities to protect the interests of depositors of the bank-participant, provided for in the Law, the organization, engaged in compulsory deposit insurance, shall form a special reserve within and through:
      1) the expenses of the organization, engaged in compulsory deposit insurance, within seventy percent of the size of its share capital;
      2) the contributions of the banks-participants;
      3) the forfeit, applied to the banks-participants for non-performance or improper performance of the obligations under the contract of adhesion;
      4) the money, received in satisfaction by the forcibly liquidated bank-participant of the requirements of the organization, engaged in compulsory deposit insurance, on the amounts, paid for the guaranteed compensation;
      5) income from the placement of assets of the special reserve of the organization, engaged in compulsory deposit insurance;
      6) income from placement of own assets of the organization, engaged in compulsory deposit insurance, reduced to the amount of costs and fees in the manner, prescribed by the Charter.
      2. The target size of the special reserve of the organization, engaged in compulsory deposit insurance, shall not be less than five percent of the amount of the guaranteed deposits in banks-participants.
      3. Special reserve of the organization, engaged in compulsory deposit insurance, can be used only for the payment of the guaranteed compensation.
      Footnote. Article 22, as amended by the Law of the Republic of Kazakhstan dated 05.12.2013 No. 152-V (shall be enforced from 01.01.2014).

Article 23 Borrowing of the organization, engaged in compulsory deposit insurance

      In case of insufficiency of funds in the special reserve of the organization, engaged in compulsory deposit insurance, for payment to depositors of the guaranteed compensation and the inability to cover the shortfall through additional contributions from banks-participants, the organization, engaged in compulsory deposit insurance, shall be entitled to obtain loans for the remaining amount of money from the authorized body.
      Beginning of payment to depositors of the guaranteed compensation shall be deferred by agreement with the authorized body for the time, necessary to borrow, but not more than forty-five calendar days from the date of entry into force of the court decision on compulsory liquidation of the bank-participant.
      Footnote. Article 23, 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 7. FINAL PROVISIONS

Article 24. Settlement of Disputes

      Disputes, arising out of the relationship for compulsory deposit insurance shall be discussed in accordance with the legislation of the Republic of Kazakhstan.

Article 25. Procedure for the entry into force of the Law

      1. The Law enters into force from 1 January, 2007 and apply to relations, arising from the contracts of bank account and (or) bank deposit, concluded ??by the banks with individuals prior to its enactment.
      2. Banks that at the time of the enactment of this Law are participants of compulsory deposit insurance, within three months from the date of the enactment of this Law are obliged to conclude with the organization, engaged in compulsory deposit insurance, the contract of adhesion in accordance with the procedure, established by this Law.
      3. The contracts on the order of making mandatory calendar, additional and extraordinary contributions, the maximum interest rate on deposits of individuals and presenting information about the deposit policy of the bank, concluded by the organization, engaged in compulsory deposit insurance, with the banks-participants prior to the enactment of this Law, shall apply until the conclusion by the bank-participant of the contract of adhesion in the manner, established by this Law.

      The President
      of the Republic of Kazakhstan