National Bank of the Kyrgyz Republic

Creation date: 2013-06-07

Bishkek

May 7, 2008 # 78

LAW OF THE KYRGYZ REPUBLIC

“On protection of bank deposits”

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139,

March 3, 2010 #42)

Chapter 1. General Provisions

Chapter 2. Scope of the deposit protection system

Chapter 3. Compensation of deposits

Chapter 4. Functions and powers of the Deposit Protection Agency

Chapter 5. Management of the Deposit Protection Agency

Chapter 6. Participation in the Deposit Protection Fund

Chapter 7. Funding of the Deposit Protection Fund

Chapter 8. Statements, audit and publication

Chapter 9. Entry into force of this Law

This Law is part of the banking legislation of the Kyrgyz Republic, and aims to establish a creation of legal norms of the system activities of obligatory protection of deposits of individuals in banks of the Kyrgyz Republic. The deposit protection system is designed to protect bank depositors in the event of guarantee by providing compensation in the amount and in the manner provided in this Law, and to promote the stability of the financial system as a whole. This Law defines the legal basis for the formation, administration and financing of the deposit protection system, establish and implement the activities of the independent Agency on the Protection of Deposits of the Kyrgyz Republic.

Chapter 1

General Provisions

Article 1. Relations regulated by this Law

1. This Law regulates the relations on establishment and operation of a system of mandatory protection of deposits (hereinafter - the deposits) of individuals in banks of the Kyrgyz Republic (hereinafter - the deposit protection system), the formation and use of the Deposit Protection Fund, the payment of compensation on deposits upon the occurrence of guaranty events, and the relationship between the Deposit Protection Agency, commercial banks, the National Bank, public authorities and other matters arising in this area.

2. This Law does not apply to other ways to protect deposits of individuals to ensure their return.

3. Force of this Law applies to banks. The provisions of this Law do not apply to other financial institutions that provide the acceptance of deposits in accordance with the legislation of the Kyrgyz Republic.

4. Relations arising in connection with the establishment and functioning of the deposit protection system regulated by this Law and adopted in accordance with the normative legal acts of the Kyrgyz Republic.

Article 2. Definitions, used in the Law

For the purposes of this Law, the following definitions:

Bank - a bank resident of the Kyrgyz Republic, as well as a branch of a foreign bank established in accordance with the legislation of the Kyrgyz Republic and subject to licensing (licensed) by the National Bank to conduct banking operations.

Participating bank - a bank that participates in the deposit protection system.

Agent Bank - a bank used by the Deposit Protection Agency for payment of compensation to depositors in accordance with the requirements of this Law.

Compensation on the deposit - amount payable to the depositor in accordance with this Law in the event of guarantee.

Deposit - is the amount of money received by the bank, having a relevant license of the National Bank, from the depositor, on the terms of return (regardless of whether these conditions require full or partial return or return of a larger amount).

Deposit base - amount of funds placed in the bank on deposit accounts of legal entities and individuals in the form of deposits.

Depositor - an individual who has made a deposit in the bank.

Contributions - funds sent for the formation of the Deposit Protection Fund in the manner and form prescribed by this Law, in the form of subscription, original, calendar and extraordinary contributions.

Protection of deposits (deposit protection system) - a circle of legal relations regulated by this Law.

Subscription – funds sent by the newly created banks to entry the deposit protection system in accordance with this Law.

Original contributions - funds sent by the current banks after the entry into force of this Law, for the formation of the Deposit Protection Fund in the amount, form and terms defined by this Law.

Calendar contributions - funds on a quarterly basis by the participating banks in the Deposit Protection Fund in accordance with this Law.

Extraordinary contributions - funds sent by the participating banks to the Deposit Protection Fund, in addition to the calendar contributions in the event of insufficient funds to meet the obligations in accordance with the requirements of this Law.

Newly established bank - a bank, established in accordance with the current legislation of the Kyrgyz Republic after the entry into force of this Law in accordance with part 1 of article 43 of this Law.

Efficient bank - a bank having a license of the National Bank to conduct banking operations on the date of entry into force of this Law (hereinafter - the Bank).

Guaranteed Deposit - funds placed on a deposit account of a depositor in a participating bank and compensable in the event of guarantee in accordance with the requirements of this Law.

Guarantee event - circumstances under which the deposit should be compensated in accordance with the Agreement of bank deposit has not been paid by the participating bank due to the effective final decision of a court on involuntary liquidation or bankruptcy of the bank, as well as in the case of voluntary liquidation procedure, initiated in accordance with the legislation of the Kyrgyz Republic, has passed into the procedure of compulsory liquidation on the grounds stipulated by the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks”, according to the effective final decision of the court.

Insiders, affiliates, common interests - according to the definitions set out in the Law of the Kyrgyz Republic “On Banks and Banking in the Kyrgyz Republic” and normative legal acts of the National Bank.

National Bank of the Kyrgyz Republic - the National (Central) Bank of the Kyrgyz Republic (hereinafter - the National Bank).

Deposit Protection Fund - a fund created by contributions specified in this Law and administered by the Deposit Protection Agency under the conditions and in the manner prescribed in this Law.

Close relatives - relatives according to the first and second stages of legal heirs in accordance with the civil law.

Overdue credits and guarantees - credits or guarantees and similar obligations in accordance with the normative legal acts of the National Bank, the execution of which is overdue for 5 days or more.

Article 3. Establishment, the main task and activity of the Deposit Protection Agency

1. Deposit Protection Agency (hereinafter - the Agency) - a legal entity with independent legal form - Deposit Protection Agency established by the Government in accordance with this Law. The Agency is an independent, non-profit organization that does not seek a profit, endowed with the powers, rights and duties established in this Law. The independence of the Agency for the purposes of this Law means independence in decision-making and budgeting of the Agency.

See:

Order of the President of the Kyrgyz Republic of July 3, 2008 РП # 149 (On the establishment of the Deposit Protection Agency of the Kyrgyz Republic);

Decree of the Government of the Kyrgyz Republic of September 21, 2011 #567 “On approval of the Regulations on the Deposit Protection Agency of the Kyrgyz Republic”

2. The legal status of the Agency is determined by this Law.

3. The main task of the Agency is to provide the deposit protection system activity in the Kyrgyz Republic. To perform this task, the Agency manages the assets of the Deposit Protection Fund, pays depositors the amount of deposits and interest thereon in the event of guarantee in accordance with this Law.

4. The Agency has the right to establish representative offices and appoint their representatives in the regions of the Kyrgyz Republic.

5. The Kyrgyz Republic is not liable for the obligations of the Agency, except as otherwise provided in this Law.

6. The National Bank is not liable for the obligations of the Agency.

7. The Agency is not liable for the obligations of the Kyrgyz Republic and the National Bank.

8. State bodies and local governments have no right to interfere in the activities of the Agency.

Chapter 2

Scope of the deposit protection system

Article 4. Deposits to be protected in accordance with this the Law

1. In the event of guarantee in accordance with this Law shall be paid to each depositor compensation is not more than KGS 100 thousand in total, including interest on deposits.

2. The amount payable to the depositor in accordance with part 1 of this article shall be reduced by the amount of overdue credits granted to the depositor, and overdue guarantees provided by the bank at the request of the depositor.

3. Interest accrued on deposits, but not paid and not capitalized, calculated on the date of guarantee event. Such interest shall accrue at the rate specified in the Agreement of bank deposit, but cannot be higher than the rate of the National Bank on the date of guarantee event.

4. In determining the amount due to compensation to any depositor in accordance with this Law, the Agency determines the total amount available in the bank deposits of the depositor.

5. In the event of a guarantee event against several participating banks, in which the depositor has a deposit, it is entitled to receive compensation in each bank separately. In the case of restructuring of banks in the form of a merger or consolidation deposits are considered guaranteed separately for each of reorganized bank within 6 months from the date of its reorganization.

6. Amount of deposits made in foreign currency, the depositor is paid in national currency at the exchange rate set by the National Bank on the day of the guarantee event. In the absence of quotations (discount rate) of the National Bank on a currency average rate for a given currency is determined through cross-rate at the date of the guarantee event.

7. In case if on the basis of the agreement a deposit is made in the name of several individuals (joint deposit), each of these individuals is a depositor to the proportion in which it set out in the agreement (contract) to open the account, and in the absence of contractual terms or the relevant rules in the legislation of the Kyrgyz Republic - in equal shares.

8. In case a voluntary liquidation (self-destruction) in compulsory liquidation for any reason a compensation is not made, if the amount paid in the process of voluntary liquidation exceeds the amount specified in part 1 of this article.

9. Obligations of a liquidated bank to the depositor reduced by the amount of payments made by the Agency in accordance with this Law.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 5. Deposits are not eligible for protection

The following deposits of individuals are not eligible for compensation in accordance with the requirements of this Law:

1) Deposits of insiders and affiliates of the bank and deposits of their close relatives, placed in the bank on preferential terms;

2) Deposits of individuals who for the past 3 years were foreign consultants or external auditors of the bank;

3) Deposits of individuals placed on behalf of a (power of attorney) legal entity;

4) Deposits in respect of which there is a decision of a court or investigating authorities in connection with the financing of terrorism or money laundering;

5) Funds of individuals engaged in individual entrepreneurial activity without formation of a legal entity placed in bank accounts opened in connection with such activities;

6) Deposits in branches of a resident bank outside the Kyrgyz Republic.

Chapter 3

Compensation of deposits

Article 6. Interaction of the Agency and the Bank in the event of guarantee

1. Within 15 calendar days after the guarantee event a special administrator shall submit to the Agency information on deposits of individuals covered by this Law, in the form established by the Agency in consultation with the National Bank.

Special Administrator is responsible for the established by the legislation of the late submission of information for the Agency about the deposits.

2. The Agency must at least 2 times a month to notify in writing a special administrator of the liquidated bank paid the compensation amounts. Form of the notice set by the Agency in consultation with the National Bank.

3. Branch of a foreign bank within one working day must notify the National Bank and the Agency for a guarantee period (or similar event, as defined by the legislation of a foreign country), initiated by the court or competent authority of the country of registration of the foreign bank in relation to this bank or any of its foreign affiliates in accordance with the legislation of the country of registration of the foreign bank.

Article 7. Procedure for making compensation payments

1. The Agency shall pay compensation to depositors in accordance with this Law by any one of the following options:

1) transfer the amounts of compensation payments to the agent bank(s);

2) other acceptable methods through the use of cash or non-cash forms of payment for effective compensation of deposits in accordance with the purposes of this Law.

2. The payment of compensation is due to commence in the period no later than 60 calendar days after the guarantee event.

If there are circumstances that prevent the timely payment of compensation and with the approval of the Board of Directors of the Agency a payment of compensation may be extended up to 60 calendar days.

3. In the event of litigation arising from the guarantee event, the compensation cannot be paid for as long as it will use all legal options and will make a final decision of the court that is not subject to further appeal. Commence of calculation of 60 days begins after the issuance of this final decision is not subject to further appeal.

4. Compensation payments on the deposit (s) shall be suspended by the Agency in respect of the owner initiated a criminal case on the fact of money “laundering” and / or in connection with the financing of terrorism, prior to the termination of the criminal case or the final decision of the court.

5. Not later than 30 days from the date of the guarantee event the Agency is obliged to publish in the press organ in the state and official languages of the place of legal office and the location of the agent bank a date, time, form and procedure of compensation payments. This information should also be published in the state and official languages in the republican newspaper and posted at the entrance to the central (head) office of the agent bank and the bankrupt bank, including their branches, savings banks and ATMs.

6. For the implementation of compensatory payments to depositors in accordance with part 1 of this article, the Agency selects one or more of the agent banks, which must meet the following requirements:

1) the bank should be participating bank of the deposit protection system;

2) must have a capital adequacy ratio and the level of equity capital to meet the requirements of the National Bank ;

3) in the last 6 months prior to the date of the guarantee event it shall not be applied by the National Bank of preventive measures and sanctions provided for in paragraphs 3-7 of part 2 of article 32 of the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”, and paragraphs 3-7 of part 2 of article 45 - 1 of the Law of the Kyrgyz Republic “On Banks and Banking in the Kyrgyz Republic”;

4) have a branch network, comparable to the geographical structure of deposits, for compensation payments.

7. For funds transferred by the Agency to the agent bank, accrual of interest and repayment are not made. A depositor has the right to enter into an agreement of bank deposit with the agent bank under the conditions stipulated by the legislation of the Kyrgyz Republic.

8. The National Bank may adopt normative legal acts establishing additional requirements for the selection of the agent bank.

9. An agent bank shall provide the Agency with weekly reports on the amounts of compensation paid in the form prescribed by the Government and agreed with the National Bank.

10. Order of selection of the agent bank and issuing requirements in accordance with parts 5, 6 and 8 of this article is approved by the Government and implemented by the Board of Directors of the Agency. Payment of compensation to depositors is carried out in accordance with the terms of an agreement between the Agency and the agent bank, subject to approval from the National Bank.

11. An agent bank shall issue to a depositor a statement of the compensation due to it at the time of payment of the compensation. The statement form is established by the Government.

12. Expiration of one year after the date of commencement of compensation payments the agent bank shall, within 3 working days to return the Agency unclaimed and unpaid depositors' funds. These funds are placed in a separate account of the Agency with the National Bank.

13. Further payment of unclaimed and unpaid compensation funds and the provision of information about them carried out by the Agency in the manner prescribed by part 1 of this article.

14. The Agency does not charge interest on deposits in respect of which came a guarantee event.

15. In case of delay in the commencement of the compensation payments determined in accordance with paragraph 2 of this Article, the Agency shall pay a depositor a fine in the amount of the annual discount rate of the National Bank for each day of delay from the amount payable.

16. If a dispute arises about the size (amounts) of compensation payments the Agency considers the appeal of a depositor within 30 days. In the case of non-permission of the dispute a depositor has the right to challenge decision of the Agency in the court. In this case, the agent bank shall inform a depositor on the treatment of the Agency with the provision of the necessary documents.

Article 8. Transfer of debt

1. The Agency acts as a creditor to a bank in respect of which commenced the procedure of forced liquidation or bankruptcy, in accordance with the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks”.

2. On the date of the guarantee event will automatically transfers to the Agency the right to claim a depositor to the bank within the guarantee amount, in relation to which a guarantee event, regardless of the time of payment and the amount actually paid by the Agency to the depositor, except if the depositor expresses its disagreement with its transfer of the claim to the Agency. If the depositor has expressed disagreement with the transfer to the Agency of its claim to the bank within the guarantee amount, then it loses the right to compensation in accordance with this Law.

3. In the process of distributing the assets of the bank demands for compensation payments that have transferred to the Agency, are the requirements of creditors of the third stage according to the priority of payments established by the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks”.

4. A depositor does not lose the right to satisfaction of its claims against the bank in excess of amounts reimbursable under this Law set out in the Bank Deposit Agreement. These requirements are met in accordance with the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks” in view of paragraph 3 of this article.

Chapter 4

Functions and powers of the

Deposit Protection Agency

Article 9. Functions of the Deposit Protection Agency

The Deposit Protection Agency performs the following functions:

1) maintains a register of participating banks;

2) keeps a record of requirements of depositors, amounts to be paid, and amounts of compensation paid on deposits;

3) pays to depositors, subject to this Law, an amount determined by this Law;

4) calculates an amount of deposits and collects deposits to the Deposit Protection Fund;

5) carries out necessary actions to ensure the timely and full payment of deposits;

6) establishes and imposes fines and penalties for a late payment of deposits;

7) manages the assets of the Deposit Protection Fund in the manner and within the limits established by this Law;

8) performs other functions, powers and privileges necessary for the efficient operation of the mandatory deposit protection system provided by the position of its activities, approved by the Government of the Kyrgyz Republic.

Article 10. Powers of the Deposit Protection Agency

1. The Agency develops normative acts necessary to implement the provisions of this Law which are approved by the Government.

2. The Agency may enter into agreements and contracts necessary for the implementation of its activities.

3. If necessary, the Agency engages public authorities and independent experts to carry out the tasks set out in this Law.

4. The Agency has a right to:

1) apply to the National Bank with a proposal on the use of appropriate sanctions for banks under the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” and “On Banks and Banking in the Kyrgyz Republic”;

2) apply to the National Bank for the information necessary to implement the tasks defined in this Law;

3) require banks to post information about the deposit protection system and the bank's participation in the deposit protection system in the provision of banking services to depositors in the form and manner specified in this Law;

4) participate in meetings and committees of creditors in banks, in respect of which the procedure has been initiated of compulsory liquidation and bankruptcy in accordance with the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks”.

5. The Agency shall not engage in activities that go beyond the limits of its objectives, functions and powers referred to in articles 3, 9 and 10 of this Law, to establish or be a party to legal entities, as well as to acquire real and personal property, except property pertaining to the functioning of the Agency.

Article 11. Prohibition of crediting and rendering of financial

and non-financial assistance

The Agency is not entitled to crediting, rendering any form of financial and non-financial assistance to the Government, other state bodies, legal entities and social organizations, and individuals.

Chapter 5

Management of the Deposit Protection Agency

Article 12. Governing bodies of the Agency

Governing bodies of the Agency shall be the Board of Directors and the Executive Director of the Agency.

Article 13. The Board of Directors of the Agency

1. The Board of Directors of the Agency (hereinafter - the Board of Directors) is the supreme governing body of the Agency, which consists of 7 members:

1) 3 representatives of the Government, including a representative of the Ministry of Economic Development and Trade, and 2 - the Ministry of Finance (not below the level of a member of the Board), appointed by the Prime Minister;

See:

Order of the Prime Minister of the Kyrgyz Republic of July 18, 2008 #277 (Appointment of members of the Board of Directors of the Deposit Protection Agency representatives of the Government of the Kyrgyz Republic)

2) 3 representatives of the National Bank (not below the level of a member of the Board of the National Bank) appointed by the Board of the National Bank;

3) independent expert in the field of banking, appointed by a joint decision of the Government and the National Bank.

See:

Order of the Prime Minister of July 18, 2008 #278 (On A.K.Abdraev)

2. Members of the Board of Directors shall act on a non-repayable basis.

3. Employment conditions, remuneration system, duties and rights, system of reward and disciplinary sanctions, for employees of the Agency, and invitees are determined by the Board of Directors in accordance with the legislation of the Kyrgyz Republic

4. Members of the Board of Directors are appointed for a term of 5 years.

5. Members of the Board of Directors may be appointed to serve a maximum of two consecutive terms.

6. Chairman of the Board of Directors and Deputy Chairman of the Board of Directors are elected by the members of the Board of Directors by a simple majority for a term of 2 years.

7. Deputy Chairman of the Board of Directors shall act as Chairman of the Board of Directors in the event of a vacancy or temporary absence of the Chairman of the Board of Directors.

8. The exclusive competence of the Board of Directors of the Agency is:

1) approval, upon the provision by the Executive Director of the Agency amounts of calendar and extraordinary deposits intended for the Deposit Protection Fund;

2) development of normative acts necessary to implement the provisions of this Law, and submit them for approval to the Government;

3) approval of the organizational structure of the Agency;

4) implementation of the management of the internal audit service of the Agency;

5) on the proposal of the Executive Director of the Agency's decision on the payment of compensation to depositors in the event of guarantee;

6) on the proposal of the Executive Director of the Agency's determination of investment policies, limitations on counterparts of the Agency;

7) approval of the Agency's budget and report on its implementation;

8) approval of the annual report of the Agency;

9) annual hearing the report of the Executive Director of the Agency;

10) exercise such other powers as provided in this Law.

Article 14. The Executive Director of the Agency

1. The Executive Director of the Agency and its deputy are appointed by the President on the proposal of the Board of Directors of the Agency. The Executive Director and its deputy may be re-appointed to the title.

See:

Decree of the President of the Kyrgyz Republic of July 22, 2008 УП #259 “On J.T.Kasymov”;

Order of the President of the Kyrgyz Republic of September 11, 2008 РП # 215 “On G.J.Batyrkanova”

2. The Executive Director of the Agency:

1) makes decisions on all matters of the Agency, except for the matters within the competence of the Board of Directors of the Agency;

2) is responsible for the daily operations of the Agency;

3) is responsible for the recruitment of qualified staff and involved experts;

4) is responsible for the use of funds of the Deposit Protection Fund, as well as the implementation and results of ongoing investment activities of the Agency;

5) acts on behalf of the Agency and represents the interests of the Agency in all judicial, government and other institutions and organizations, regardless of their legal form, as well as in relations with individual entrepreneurs and citizens.

Article 15. Meetings of the Board of Directors

1. The Board of Directors shall meet as often as necessary but no less than once per quarter. The quorum at a meeting of the Board of Directors consists of five members. Decisions are made by a simple majority vote of the members of the Board of Directors. In case of equal votes, the Chairman of the Board of Directors shall be decisive.

2. Extraordinary meetings of the Board of Directors may be convened at the initiative of the Chairman of the Board of Directors or 4 members.

3. Members of the Board of Directors may not delegate its powers.

4. At each meeting the Secretary of the Board of Directors keeps up the Minutes signed by the presiding member of the Board of Directors and the Secretary. The Minutes should include a summary of the issues discussed and all members of the Board of Directors.

5. Decision of the Board of Directors shall be in the form of resolutions, signed by the Chairman. For each issue is voting statement, signed by each member present at the meeting of the Board of Directors and is a part of the Minutes of the Board of Directors.

6. Decisions and Minutes of the Board of Directors are kept constantly.

Article 16. Vacancies in the Board of Directors

1. Any vacancy in the Board of Directors is filled in the same manner as the original appointment in accordance with articles 13 and 18 of this Law.

2. In the event of a vacancy, may be appointed a new member of the Board of Directors.

3. Any vacancy shall be filled within 30 days.

Article 17. Resignation and dismissal

Members of the Board of Directors dismissed by the persons appointed them, except in the following cases:

1) at the end of the term;

2) at the personal statement;

3) in the commission of a criminal offense, established by a valid court sentence;

4) impossibility to fulfill its duties confirmed by the state medical commission;

5) loss of citizenship of the Kyrgyz Republic;

6) at default (abuse) the requirements provided for in articles 18 and 19 of this Law;

7) non-performance of power of a member of the Board of Directors for 6 consecutive months without a valid reason;

8) exemption from work in the body, of which it is a representative;

9) violation of its duties and performing the acts prejudicial to the Agency, or violation of this Law and the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”, “On Banks and Banking in the Kyrgyz Republic”, on the recommendation of the majority of members of the Board of Directors of the person, them appointing.

Article 18. Qualification requirements for members of the Board of Directors of the Agency

1. Members of the Board of Directors shall:

- have a higher education;

- have experience of at least 3 years in the banking, economic and financial management;

- have experience in management positions in the banking and / or financial systems, or in positions related to economic (financial) activities;

- have citizenship of the Kyrgyz Republic.

2. Members of the Board of Directors cannot simultaneously hold positions or otherwise perform their duties in participating banks of the deposit protection system and their affiliates.

3. Members of the Board of Directors may not have the stock (shares) of commercial banks and bank-affiliated entities. If the appointment of a member of the Board of Directors owns (controls), the bank's shares, it shall, within 30 days to transfer ownership rights on these shares in the management of an independent trustee either their transfer or sale.

4. A person is not entitled to be a member of the Board of Directors:

1) if imposed against it by a court conviction, which prohibits it from working in the financial and credit system;

2) if in respect of it conviction for crimes in the sphere of economy, finance and banking, as well as for malfeasance;

3) if it was the chairman of the Board of Directors, a member of the Board of Directors, the Chairman of the Board, a member of the Board, the Chairman of the Audit Committee, the chief accountant, the head of the internal audit service of a financial institution subjected to forced liquidation procedure, and there is evidence suggesting that its actions (inaction) significantly influenced the occurrence of a situation of forced liquidation;

4) if it has a criminal record expunged or outstanding in due course as the legislation of the Kyrgyz Republic and other state;

5) if it is a close relative of a member of the Board of Directors of the Agency and / or significant participant and member of the Board, member of the Board of Directors of a participating bank.

5. The management and employees of the Agency, including the former, which in accordance with this Law have or had access to the information, bear criminal or other responsibility under the legislation of the Kyrgyz Republic for the unlawful disclosure or use it for personal purposes.

6. Failure to comply with the provisions of this article, be considered a violation of duties and member of the Board of Directors shall be dismissed within 30 days of the violation has been established in accordance with paragraph 9 of article 17 of this Law, or immediately - in the case of violation of parts 2 and 4 of this article.

Article 19. Conflict of interests

1. Prior to the appointment as alternate members of the Board of Directors and other officers of the Agency must provide written information about their commerce, entrepreneurial and other tangible personal interest and their close relatives, to the establishment of the Agency – the body which appoints them, in the form developed by the National Bank.

2. Each year, members of the Board of Directors and other officers of the Agency shall provide the Agency with written information about their commerce, entrepreneurial and other tangible personal interest and their close relatives, in the form prescribed by the Agency.

3. Members of the Board of Directors shall not presented and shall not be entitled to participate in the discussion and voting on matters in which they or their close relatives, and persons associated with them, have a personal interest (directly or indirectly).

4. Members of the Board of Directors are required to contribute to the disclosure of the facts that give rise to conflicts of interest.

5. Failure to comply with the provisions of this article, be considered a violation of the duties and is the basis for consideration of the dismissal in the Agency in accordance with paragraph 9 of article 17 of this Law.

Chapter 6

Participation in the Deposit Protection Fund

Article 20. Participation in the Deposit Protection System

1. Participation in the deposit protection system is mandatory for all resident banks, all branches of foreign banks in the Kyrgyz Republic, in accordance with the requirements of this Law.

2. A participating bank of the deposit protection system shall comply with all mandatory standards and requirements established by the legislation of the Kyrgyz Republic and the normative legal acts of the National Bank, in which:

а) has a satisfactory financial condition, provides information on the activities of previous years and the bank's development strategy for the future;

b) has adequate capital and other requirements to the capital of the bank;

c) reserves to cover potential losses and damages must be adequate asset quality;

d) bank in accordance with the laws of the Kyrgyz Republic, as well as meet the established qualification requirements;

e) has the required level of income;

f) maintains an appropriate level of liquidity of the bank;

g) has an adequate system of internal control and internal audit;

h) accounting and reporting must conform to established standards of accounting and financial reporting.

3. The National Bank may establish additional criteria for participating banks of the deposit protection system.

4. (Null and void in accordance with the Law of the Kyrgyz Republic of April 29, 2009 #139)

5. The newly established banks must apply to the National Bank to participate in the deposit protection system simultaneously with the filing of documents for obtaining a banking license. The newly established banks will be automatically accepted into the deposit protection system in complying with the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”, “On Banks and Banking”, established by the National Bank and the requirements for obtaining a license to conduct banking activities.

After obtaining a license from the National Bank to conduct banking activities and the bank transfers the subscription to the Deposit Protection Fund the National Bank sends a notice to the Agency confirming that the issuance of the banking license with a copy of the bank statement to participate in the deposit protection system. Notification of the National Bank is the basis for making bank in the register of participating banks in the deposit protection system. The Bank becomes a party to the deposit protection system from the day of its registration by the Agency in due course.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 21. Registering and maintaining a register of participating banks in the Deposit Protection System

1. The Agency shall maintain a register of participating banks in the deposit protection system. Order of the register of participating banks is established by the Agency.

2. Registration of the bank in the deposit protection system is fulfilled by the Agency making it into the registry of participating banks.

3. Not later than 2 working days after the bank's register of participating banks in the deposit protection system an information is sent by the Agency to the bank, which shall publish it in a national newspaper in the state and official languages within 5 working days after receipt.

4. The fee for the bank registration and deregistration in the deposit protection system will not be charged.

5. The bank is deregistered by the Agency in the deposit protection system by its exclusion from the register of participating banks in accordance with Article 25 of this Law within 5 working days after the completion of the Agency's procedures for payment of compensation on deposits, defined by this Law.

6. The Agency is required no later than 2 working days to send the information to the participating bank to expel it from the register, which in turn is obliged to publish it in a national newspaper within 2 working days of receipt of this information in the state and official languages, and make this information at the entrance to the central (head) office of the bank, its branches, savings banks and ATMs.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 22. Duties of a participating bank of the deposit protection system

1. Participating banks of the deposit protection system are required:

1) on time and in full to pay deposits as specified in this Law;

2) to post information about the deposit protection system, and the participation in it of the bank in the prescribed form by the Agency in all divisions of the bank and other places where the bank accepts deposits, and provide this information to the client on demand, free of charge;

3) to keep records of the bank's liabilities to depositors in the form prescribed by the National Bank;

4) to pay fines and penalties as defined in this Law;

5) to perform other duties as prescribed by this Law.

Article 23. (Null and void in accordance with the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 24. (Null and void in accordance with the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 25. Consequences of non-compliance of banks included in the

deposit protection system with requirements of participation in the deposit protection system

1. Banks, which are included in the deposit protection system, must comply with the requirements of this Law and other regulations governing the banking.

2. If a participating bank in the deposit protection system does not pay the contribution in the deposit protection system or pay it out of time, or not fully, it is excluded from the deposit protection system.

3. If a participating bank of the deposit protection system;

а) does not keep records in accordance with the requirements of this Law;

b) provides false information to third parties, including advertising, of the activities and the bank's participation in the deposit protection system;

c) violates the requirements of this Law and other normative legal acts;

The National Bank may apply any or more of the following measures:

1) to impose a fine of up to one percent of the paid charter capital of a participating bank;

2) to apply the measures provided for by the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” and “On Banks and Banking in the Kyrgyz Republic”;

3) to prohibit the bank to accept deposits;

4) to revoke a license to conduct banking, which automatically entails the termination of membership in the deposit protection system.

4. In the event of termination of membership in the deposit protection system the bank may not accept deposits.

5. In case of violations referred to in subparagraphs “a”, “b” and “c” of Part 3 of this Article, the National Bank may direct instruction to the bank to take measures in a timely manner. With their non-compliance with the National Bank applies the measures referred to in paragraphs 1-4 of Part 3 of this article.

6. A bank deposit agreement with individuals executed by the bank before the date of the decision by the National Bank, in accordance with paragraphs 3 and 4 of Part 3 of this Article shall not be subject to cancellation, except for cases when initiated by the owner of the deposit with the requirement to terminate the agreement or as provided by the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks”. Such an agreement cannot be extended.

7. Additional funds, which came in the deposit from the date of application of the National Bank of the measures specified in paragraphs 3 and 4 of part 3 of this article, except for interest accrued in accordance with the terms of the bank deposit agreement is not credited to the account and shall be returned to the persons who have given instruction on remittance of funds to the deposit.

8. Banks, for which, in accordance with this article imposed a ban on attraction of deposits are required no later than the working day following the day of the introduction of the ban, place the information on the termination of the right to attract funds for deposits at the entrance to the central (head) office of the bank, in operating rooms, branches, savings banks and all facilities available to clients of the bank, in which the maintenance of depositors.

9. In case of failure by the bank obligations established in this article, the National Bank applies the measures and sanctions provided for by the laws of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic” and “On Banks and Banking in the Kyrgyz Republic”.

10. Deposits accepted prior to the termination of membership in the deposit protection system to be covered under this Law before the expiry of the period specified in the bank deposit agreement. Term of the agreement cannot be extended. Any funds directed to deposit after the termination of membership in the deposit protection system should be returned to the person who directed them.

11. For the acceptance of deposits after the issuance of the ban on their admission, suspension and / or termination of membership in the deposit protection system, the Board of Directors and the Board shall be liable in accordance with the legislation of the Kyrgyz Republic.

12. The bank has no right to demand the return contributions made to the deposit protection system. The Bank is required to continue making contributions on deposits, subject to compensation in accordance with this Law, until the guarantee event.

13. The Agency and the Bank, whose membership in the deposit protection system is terminated or suspended, or in respect of which the ban on the acceptance of deposits shall:

1) place the following information in the state and official languages at the entrance to the central (head) office of the bank and the operating rooms, branches, savings banks and all other facilities available to clients of the bank:

а) the date of suspension of membership in the deposit protection system;

b) that all deposits accepted prior to the date of the ban on deposits, termination or suspension of membership in the deposit protection system should be protected in accordance with this Law;

2) publish the information referred to in paragraph 1 of part 13 of this article, in the state and official languages in the national newspaper within 2 working days after the date of the ban on deposits, termination and / or suspension of membership in the deposit protection system.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Chapter 7

Funding for the Deposit Protection Fund

Article 26. Contributions to the Deposit Protection Fund

1. Participating banks of the deposit protection system must pay mandatory contributions to the Deposit Protection Fund at the rate and in the terms defined by the Agency in consultation with the National Bank.

2. The Deposit Protection Fund is formed to the level of the target set in part 2 of article 43 of this Law by making contributions by the Government and the banks operating in the following ratio:

1) Government - 76 per cent;

2) Efficient banks - 24 percent.

3. Subsequent contributions to support the activities of the Deposit Protection Fund are operated under the conditions specified in Articles 27-31 of this Law.

4. The Government of the Kyrgyz Republic shall contribute a lump sum to the Deposit Protection Fund in the amount of 100 percent of the target of the Deposit Protection Fund established by part 2 of article 43 of this Law, including the part of the target of the Deposit Protection Fund, which should make the banks in accordance with paragraph 2 of part 2 of this article.

In this case, the Government of the Kyrgyz Republic, represented by the Ministry of Finance of the Kyrgyz Republic concludes with the participating banks of the deposit protection system, entered into the system, the agreement of commitment to the Government of the Kyrgyz Republic.

4-1. To maturity the share of commercial banks in the Deposit Protection Fund contributed by the Government of the Kyrgyz Republic in accordance with paragraph 4 of this article, banks makes contributions to the Deposit Protection Fund, established pursuant to paragraph 2 of Part 2 of this article. These contributions of the banks are sent by the Agency within 3 working days after being accepted to the Deposit Protection Fund, the republican budget to the full repayment of the amount paid by the Government of the Kyrgyz Republic in accordance with paragraph 4 of this article.

In the event of guarantee against the participating bank until the date of full repayment of the amount paid by the Government of the Kyrgyz Republic, the Agency, on the basis of data provided by the participating bank of information on the total deposit base of the participating bank on the date of guarantee event, calculates the amount to be paid by the participating bank to the Deposit Protection Fund, in accordance with paragraph 2 of part 2 of this article.

In the process of the distribution of assets in case of guarantee event in respect of the participating bank, signed an agreement with the Government of the Kyrgyz Republic, the amount of the liability of a participating bank to the Government of the Kyrgyz Republic, calculated by the Agency in accordance with the second paragraph of this part, to be repaid in the fifth line of creditors in accordance with the priority of payment established by the Law of the Kyrgyz Republic “On conservation, liquidation and bankruptcy of banks”.

5. The amounts of the bank made to the Deposit Protection Fund shall be returnable in case of a voluntary liquidation procedure of the bank in accordance with the legislation of the Kyrgyz Republic, if the bank has no debt on deposits of individuals to be protected under this Law, except for deposits provided for in Article 5 of this Law.

6. Contributions as specified and paid in accordance with this Law, are the property of the Deposit Protection Fund and are non-returnable, except as provided in this Law, and directed exclusively for the payment of compensations to the depositors in the event of guarantee in accordance with this Law.

In the case of exclusion of a participating bank of the deposit protection system made them fees are non-returnable.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 27. Contributions of the newly established banks (subscription)

1. The newly established banks must pay a subscription of one percent of the charter capital. Such payment must be made within 30 calendar days of obtain of a license to conduct banking.

2. In the case of increase of the charter capital additional membership contributions are not charged by banks.

3. Subsequent calendar contributions are made in accordance with articles 29-31 of this Law.

Article 28. Contributions of efficient banks

1. Prior to the conditions specified in paragraph 2 of Article 43 of this Law, the contributions of efficient banks are set at 0.2 percent per annum of the total deposit base of the bank to achieve the targets set out in paragraph 2 of article 26 and paragraph 2 of article 43 of this Law.

2. Contributions of efficient banks are paid, starting with the quarter following the date of entry into force of this Law.

3. In case of non-acceptance of efficient banks in the deposit protection system made amounts are returnable to banks, except in the following cases:

1) introduction of direct banking supervision;

2) introduction of temporary management;

3) commencement the procedure for conservation;

4) availability, on the opinion of the National Bank, the threat to the interests of depositors.

4. Contributions are paid on a quarterly basis no later than the 15th of the month following the account quarter.

5. Contributions to the Deposit Protection Fund are carried out without further authorization in case of non-payment or partial payment of the amount of contributions that must be stipulated in the agreement with a participating bank and the Agency.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 29. Calendar contributions

1. After the happening of conditions specified in paragraph 2 of Article 43 of this Law, banks are required to pay an annual calendar contributions of 0.2 percent per annum of the total deposit base of the bank on the date after the happening of conditions specified in paragraph 2 of article 43 of this Law.

Contribution rates are calculated by the Agency in cooperation with the National Bank, based on the necessity to establish and maintain the Deposit Protection Fund in an amount not less than the value specified in paragraph 2 of article 43 of this Law.

2. Total deposit base is calculated on an average daily basis over a period of one year, ending a quarter (account quarter) preceding the quarter in which the contribution is made in accordance with part 5 of this article.

3. For the newly established banks first calendar contribution shall be calculated by multiplying the total deposit base of the bank on 1/360 and the number of remaining before the end of the account quarter from the date of entry the deposit protection system in accordance with part 5 of article 20 of this Law.

4. For the banks, in respect of which came guarantee event, payments are calculated on the date of its occurrence in accordance with this article.

5. Calendar contributions are paid on a quarterly basis no later than the 15th of the month following the account quarter.

6. Contributions to the Deposit Protection Fund are carried out without further authorization in case of non-payment or partial payment of the amount of contributions that must be stipulated in the agreement with a participating bank and the Agency.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 N 139)

Article 30. Extraordinary contributions

1. If funds of the Deposit Protection Fund are insufficient to cover the obligations under the requirements of this Law, the Board of Directors of the Agency may take one or multiple of the following measures:

1) to increase the amount of annual contributions, but not more than double the contribution rate from the level established in part 1 of article 29 of this Law;

2) to establish a special one-time contributions that do not exceed 50 percent of contributions last year;

3) to borrow in the market guaranteed by the Government;

4) to use the provided grant funds;

5) request and receive a loan from the Government at a rate not exceeding the rate of the National Bank. The Government must provide the requested funds within 5 working days from the date of receipt of the request. If the result of this request violated the law on the state budget of the Kyrgyz Republic for the year or the Government is unable to provide the funds, the matter should be considered at the meeting, including pre-term, of the Jogorku Kenesh, convened within 30 days from the date of the request to the Government. After this period a decision on a loan is considered accepted and the Ministry of Finance shall transfer the necessary funds not later than 3 working days.

2. In determining the level of contributions to the Board of Directors of the Agency shall consider:

1) expenses of the Deposit Protection Fund related to the payment of compensation to depositors;

2) expected operating costs of the Deposit Protection Fund;

3) income of the Agency from investments;

4) return of facilities from the liquidation of banks;

5) impact assessments for the income and capital of the bank;

6) in the payment of the amounts of borrowing in accordance with paragraphs 3 and 5 of Part 1 of this article;

7) any other factors that the Board of Directors may deem necessary.

If the Agency estimated the introduction of a double contribution rate for late payment of compensation will cause problems at the bank, the Agency may decide otherwise.

3. Any increase in the payment of contributions or extraordinary contributions or borrowing must be approved by the Board of Directors with the approval of the National Bank.

4. The Agency shall inform banks of any changes in contributions for at least 30 days before the last day of the quarter for which the payment is made.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 31. Special provisions

1. All contributions are compulsory payments of the banks, they are considered operating costs with a corresponding reduction of the tax base.

2. For the calculation of deposits in foreign currency a discount rate is applied by the National Bank on the last day of the quarter in which the payment is made.

3. If the bank does not pay the fee in accordance with this article, it shall pay interest at double the rate of the annual discount rate of the National Bank for each day of delay from the amount payable. Payment of fines does not exempt the bank from paying contributions.

4. After reaching the target the Agency may reduce the size of contributions to the Deposit Protection Fund, except if the bank over the last 6 months has been subject to sanctions and measures established by the Law of the Kyrgyz Republic “On the National Bank of the Kyrgyz Republic”.

5. Reducing the size of contributions to the Deposit Protection Fund is carried out after the full repayment of funds borrowed by the Fund.

6. In case of reduction target of the Fund below the established level the contributions can be increased.

Article 32. Sources of financing of the Deposit Protection Fund

1. Sources of financing of the Deposit Protection Fund include:

1) contributions established by this Law and paid by participating banks;

2) contributions made by the Government;

3) interest and investment income from the placement of the Agency of available funds;

4) funds received from the liquidation of banks, in accordance with article 8 of this Law;

5) fines and penalties paid by participating banks;

6) (null and void in accordance with the Law of the Kyrgyz Republic of April 29, 2009 #139)

7) funds received as an aid and are non-returnable;

8) market borrowings obtained under the guarantee of the Government;

9) credits provided by the Government;

10) other funds in accordance with the legislation of the Kyrgyz Republic.

2. Net proceeds obtained by the Deposit Protection Fund, must be capitalized and cannot be distributed.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 33. Accounts of the Agency and investment policy

(Title of the article as amended by the Law

of the Kyrgyz Republic of April 29, 2009 #139)

1. Account of the Agency, designated to replenish the Deposit Protection Fund by contributions from the Government of the Kyrgyz Republic and the commercial banks, subject to opening and maintenance of the National Bank.

Bank accounts of the Agency intended for operating expenses and other expenses of the Agency, opened in commercial banks.

2. The Agency may invest in securities:

1) issued and / or unconditionally guaranteed by the Government of the Kyrgyz Republic;

2) issued by the National Bank of the Kyrgyz Republic;

3) other securities defined by the legislation of the Kyrgyz Republic.

Order and parameters of investment are determined by the Government of the Kyrgyz Republic.

3. Operating expenses and other costs for the maintenance of the Agency related to the execution of the tasks assigned to it, for each fiscal year covered by:

1) 2 percent per year from the target of the Fund, and in the subsequent 2 percent per year of total amount of accumulated funds of the Fund and compensation payments to be returned to the Fund, calculated at the beginning of the year;

2) 25 percent of the income derived from the investment of free funds of the Fund;

3) other funds.

(As amended by the Laws of the Kyrgyz Republic of April 29, 2009 #139, March 3, 2010 #42)

Article 34. Use of funds of the Deposit Protection Fund

Funds of the Deposit Protection Fund can be used only for the implementation of the following fees and expenses:

1) compensation to depositors in the manner and amount provided for in this Law;

2) cover operating expenses of the Agency;

3) make payments of principal and interest received by the Agency in accordance with this Law loans and credits.

Article 35. Status of tax exemption

1. Income, funds, operations and assets of the Agency and the Deposit Protection Fund are not subject to taxation in accordance with the legislation of the Kyrgyz Republic.

2. The Agency is exempt from state tax in the courts of the Kyrgyz Republic.

Chapter 8

Statements, audit and publication

Article 36. Statements and information provided for the Agency

1. To fulfill the requirements of this Law, each participating bank shall provide to the Agency and the National Bank required form, order, content and timing of which is set by the Government in consultation with the National Bank.

2. On request of the Agency the National Bank submits the information necessary to implement the provisions of this Law.

3. The Agency shall have the right to receive information containing official, commercial and banking secrecy in relation to which occurred a guarantee event to perform functions defined by this Law.

4. In the case of disclosure of the Agency or its officers an information being official, commercial and banking secrecy, the Agency is responsible in accordance with the legislation of the Kyrgyz Republic.

5. Persons who violated the official, commercial and banking secrecy are personally responsible, in accordance with the legislation of the Kyrgyz Republic.

Article 37. Statements of the Agency on the deposit protection

1. The financial year of the Agency shall be established from January 1 to December 31 inclusive.

2. The Agency shall maintain permanent records and reports in accordance with the international accounting standards.

3. The Agency shall prepare annual financial statements in accordance with Article 40 of this Law.

Article 38. Audit of the Agency on the deposit protection

1. The Board of Directors of the Agency no later than 6 months before the end of the financial year on a competitive basis determined an independent auditing organization to conduct an external audit of the Agency.

2. The Agency, according to the signed agreement with the audit organization, is reporting and information necessary to conduct the audit.

3. Payment for services on audit of the Agency at the cost of operating expenses of the Agency.

Article 39. Internal control

The Agency must have an adequate system of internal control, including internal audit service, reporting to the Board of Directors.

Article 40. Annual report of the Agency

1. The annual report of the Agency is approved by the Board of Directors and includes:

1) financial statements of the Agency, audited and includes all required disclosures in accordance with the international standards of accounting and reporting;

2) analysis of the activities of the Agency and the state of the Deposit Protection Fund;

3) other reports on the activities of the Agency, determined by the Board of Directors of the Agency and necessary for adequate disclosure of the operations and activities of the Agency.

2. The Agency annually submits the annual report on its activity to the profile committee of the Jogorku Kenesh, the Government and the National Bank not later than 30 April of the year following the reporting year.

3. Forms of financial statements of the Agency, including the profit and loss statement, of the financial condition of the balance sheet, cash flows and changes in capital structure, to be presented at the first request of any person.

Article 41. Publications

1. The Agency on a quarterly basis publishes in the mass media its financial statements in the form prescribed by the Board of Directors of the Agency and consistent with the National Bank.

2. The Agency publishes in the mass media the main analytical data included in the annual report in the form prescribed by the National Bank.

3. The Agency within 5 working days from the date of publication of the information specified in paragraphs 1 and 2 of this Article shall submit a duly certified copy of the publications in the National Bank.

Article 42. Foundations of cooperation of the Agency and the National Bank

1. The Agency and the National Bank are coordinating their activities in accordance with the requirements of this Law and other normative legal acts.

2. The National Bank not later than 3 working days after the relevant decision shall inform the Agency:

1) on issue a license to conduct banking;

2) on the decision-making to conduct the audit of the bank on the proposal of the Agency, as defined in paragraph 1 of part 6 of this article;

3) on reorganization or liquidation of the bank;

4) on the application of the National Bank of the following:

а) imposing restrictions on the accept and issuance of deposit;

b) appointment of a conservator;

c) suspension or revocation of a license;

d) on measures applied by the National Bank on a proposal of the Agency.

3. The Agency no later than the working day following the day on which the relevant decision shall inform in writing the National Bank on making bank in the register banks and the exclusion the bank from the register.

4. The Agency must provide the National Bank all events (facts) that are listed in Articles 13-19, 21-22, 30, 33 and 40 of this Law, in the manner and form specified by the National Bank.

5. The National Bank may require any other information necessary for the implementation of this Law.

6. The Agency has the right to apply to the National Bank with a proposal:

1) to carry out by the National Bank of a special-purpose inspection of the bank to fulfill the requirements by the bank of this Law;

2) to apply by the National Bank with regard to the bank of preventive measures and sanctions.

Chapter 9

Entry into force of this Law

Article 43. Entry into force of this Law

1. This Law shall enter into force three months after its official publication, except for the conditions specified in paragraph 2 of this article.

Published in the newspaper “Erkintoo” of May 13, 2008 #33

2. Provisions of this Law relating to the occurrence of a guarantee event and its consequences take effect no earlier than the target of the Deposit Protection Fund, equal to 15 percent of the guaranteed deposits of all banks operating at the time of the entry into force of this Law, calculated as of the last reporting date prior to the date the entry into force of this Law.

3. The Government to carry out organizational activities of the establishment of the Agency on the deposit protection and resolve issues of financial and logistical support of its activities.

(As amended by the Law of the Kyrgyz Republic of April 29, 2009 #139)

Article 44. Final Provisions

1. Part 1 of article 31 and part 1 of article 35 of this Law shall come into force after making appropriate amendments to the Tax Code of the Kyrgyz Republic.

2. Part 2 of article 35 shall enter into force after making appropriate amendments to the Law “On State Duty”.

3. Provisions under this Law relating to the revocation of the license of banks and imposing restrictions on them, will come into force after making appropriate amendments and modifications to the Law “On Banks and Banking in the Kyrgyz Republic”.

4. The Government of the Kyrgyz Republic within three months from the date of signing of this law to bring it into line with its normative legal acts.

President of the Kyrgyz Republic K.Bakiev

Adopted by the Jogorku Kenesh

Kyrgyz Republic of March 7, 2008