Law of the Republic of Uzbekistan
LAW
OF THE REPUBLIC OF UZBEKISTAN
April 5, 2002 No. 360-II
On Guarantees of the Citizens’ Deposits Protection in the Banks
Article 1. Objective of the Present Law
The objective of the present Law is the regulation of the relations in the field of ensuring protection of deposits made by the citizens of the Republic of Uzbekistan, foreign citizens and stateless persons (hereinafter referred as citizens) in the banks of the Republic of Uzbekistan (hereinafter referred as Banks).
Article 2. Legislation Regarding Guarantees of the Citizens’ Deposits Protection in the Banks.
Legislation on the guarantees of the Citizens’ Deposits Protection in the Banks consists of the present Law and the other legislative acts. If it is otherwise provided by the International Contract of the Republic of Uzbekistan than by the legislation of the Republic of Uzbekistan regarding guarantees of the Citizens’ Deposits Protection in the Banks, than regulations of the International Contract shall be applied.
Article 3. The Object of the Guaranteeing
The object of the guaranteeing is the citizens’ deposit in the banks. According to the present Law the object of guaranteeing is not cash assets: in the citizens’ deposits in the banks on which it is provided a specific order of guaranteeing; transferred to the banks by the citizens as the trust deposit; being on the bearer’s account; placed on the accounts of the natural persons engaged into business activity without establishment of the juridical person if these accounts have been opened because of the above mentioned activity; placed into citizens deposits in the banks, pledged on the liabilities security to the given bank or to the third persons; placed in the foreign branches of the banks.
Article 4. Guaranteeing Fund of the Citizens’ Deposit in the Banks
For the implementation of the present Law objective the Guaranteeing Fund (hereinafter referred to as the Fund) for the Citizens’ Deposits in the Banks is being set up.
The objective of the Fund’s activity is to guarantee of the compensation payment for the citizens’ deposit in the banks in case of the withdrawal of the Banks’ License (hereinafter referred to as the License Withdrawal) for the right to make bank transactions by the Central Bank of the Republic of Uzbekistan on terms and in volume provided by the present Law. Guarantee of the compensation payment on the citizens’ deposits in the banks by the Bank doesn’t apply to the cases of the License Withdrawal caused by the bank reorganization.
Fund is the juridical person and acts on the basis of the concluded by the banks written agreements.
Fund property is formed at the expense of the obligatory bank’s contributions and revenue, obtained through asset placement and the other incomes according to the legislation.
Fund cash assets are kept in the Central Bank of the Republic of Uzbekistan.
Fund management is executed by the Supervisory Board of the Fund and Executive body of the Fund.
The Fund cannot deal with rendering of the financial assistance as well as charity activity and to be a Founder of the juridical persons.
Article 5. Fund Supervisory Board
Fund Supervisory Board performs general governing of the Fund activity. Membership of the Supervisory Board is approved by the Cabinet of Ministers of the Republic of Uzbekistan. Meetings of the Fund Supervisory Board are to be called by its Chairman or by not less than one third of the Fund Supervisory Board members as required, but not less than once per quarter.
Fund Supervisory Board has the right to make decisions if there are not less than two thirds of its members are present at the meeting. Decision of the Supervisory Board is considered to be adopted if not less than two thirds of votes from the attendants have voted. Chairman of the Supervisory Board has a casting vote in the event of the votes’ equality.
Article 6. Authorities of the Fund Supervisory Board
Fund Supervisory Board shall adopt calendar rate of the bank assessments, the order of payment and terms of their paying up; take a decision regarding compensation payment on the citizens’ deposits in the banks; choose the bank-agent under consent of the Central Bank of the Republic of Uzbekistan; make a decision regarding placement of the Fund assets into the government securities and the other assets; adopt the order of the Fund assets use including calculation of costs for the current activity; form Executive body of the Fund and exercise control over its activity; determine auditing Company; carry out the other authorities according to the legislation.
Article 7. Fund Executive Body
The Board of Directors is the Fund Executive Body that carries out current guidance and bears responsibility for the Fund activity. The Board of Directors includes the Director, Deputy Director and Chief Accountant.
The Board of Directors of the Fund shall: exercise control over the timeliness and fullness of the remittance of the lump sum and calendar payments by the banks; carry out measures for the compensation payment on the citizens’ deposits; introduce for the adoption to the Fund Supervisory Board calculation of costs for the current activity; perform the other authorities according to the legislation. Director of the Fund is to take part in the meetings of the Fund Supervisory Board with the right of advisory vote.
Article 8. Obligatory Payments of the Banks to the Fund
There are the following obligatory payments of the banks to the Fund: lump sum and calendar ones.
Lump sum payments of the bank to the Fund makes up 0,1 % from the amount of the actually paid up Authorized bank capital. Calendar payment represents cash assets quarterly remitted to the Fund by the banks. Amount of the calendar payments is calculated on the assumption of actual balance of the citizens’ deposits subject to the guaranteeing according to the present Law for the quarter at the amount fixed by the Fund Supervisory Body, but no more than 0,5 % from the total deposits’ amount. Payment of the calendar dues by the banks shall be suspended at the obtaining of the amount of the paid calendar dues to 5% from the total balance amount of the citizens’ deposits in the bank. In case of changing of the total amount of the balance citizens’ deposits in the bank the amount of the paid calendar fees to the Fund is subject to the re-calculation. Introduction of the veto for the banks to attract cash assets of the citizens into the contributions by the Central Bank doesn’t release the bank from the payment of the calendar contributions to the Fund. In case of changing of the calendar contribution rate the Fund is obliged to inform banks about it not later than thirty days prior to it.
Under calculation of the calendar contribution on the citizens’ deposit in the banks in the foreign currency recalculation shall be made at the exchange rate of the Central Bank of the Republic of Uzbekistan as for the day preceding remittance of the calendar contribution. Obligatory banks’ contributions to the Fund referred to the bank expenses included into the cost of the rendered services.
Article 9. Bank Obligations to the Fund
Banks are obliged to: conclude written agreements with the Fund; timely and in full make obligatory contributions provided by the present Law; present to the Fund data regarding the number and amount of the citizens’ deposits in the banks subject to the guaranteeing according to the present Law.
In case of the bank dissolution Liquidation Commission of the Bank is obliged to reimburse to the Fund the difference between the compensation amount on the citizens’ deposit in banks and the amount of contribution of the liquidating bank to the Fund as well as expenses incurred under payment of compensation on deposits.
Article 10. The amount of compensation for citizens' deposits in banks
Payment of compensation for citizens' deposits at the expense of the bank and the Fund in full based on the balances of deposits, as reflected in the interim balance sheet of the bank, approved in the manner prescribed by law. (Part of the Law of the Republic of Uzbekistan from 06.04.2009, N LRU-203) (See previous wording).
Part Two is excluded in accordance with the
Law of the Republic of Uzbekistan from 06.04.2009, N LRU-203
Part of the third and fourth count
second and third, in accordance with
Law of the Republic of Uzbekistan from 06.04.2009, N LRU-203
In the event that the bank acted in relation to the investor as a creditor, the amount of compensation for deposits is determined as the difference between the amount of reimbursement of deposits to be paid to the depositor, and the amount of counter-claims of the bank.
Payment of compensation for citizens' deposits in banks in foreign currency is made in the manner and amount established by this Law, in local currency at the exchange rate of the Central Bank of the Republic of Uzbekistan on the date of license revocation.
Article 11. Order and Terms of the Compensation payment on the Citizens’ Deposits in the Banks
For purposes of compensation payment on the citizens’ deposits in the banks the Liquidation commission of the bank within two months from the date of the License withdrawal shall take actions for the revealing of the creditors and obtaining of the accounts receivable and means lodged in the Fund of the Obligatory Reserves in the Central Bank of the Republic of Uzbekistan. The above mentioned means in the order of priority shall be send for the paying off debts of the liquidated bank on the citizens’ deposits.
Upon expiry of the term fixed in the first part of the present Article liquidation commission of the bank within 10 days period is obliged to present to the Fund: adopted interim liquidation statement of balance; information regarding property composition of the liquidated bank; list of the requirements presented by the creditors; information confirming the amounts of the citizens’ deposits; calculation of the Funds needs in the Fund money assets for the compensation payment on the citizens’ deposit. The Fund within three days from the date of the interim liquidation statement of balance shall publish a report in the mass media about the order and terms of the compensation payment on the citizens’ deposits in the banks.
The Fund is obliged to begin compensation payment on the citizens’ deposits in the banks within ten days from the moment of the report publication in mass media. Payment shall be made by the Bank (bank-agent) determine by the Fund under agreement of the Central Bank of the Republic of Uzbekistan. When depositors apply in order to get compensation on their deposits the bank-agent is obliged to pay above-mentioned compensation against show the documents by the depositor certifying the presence of his deposit and proving his/her identity. Compensations on the citizens’ deposits in the bank shall be paid also to the legitimate representatives of the depositors or their assignee against producing of the appropriate documents. Receiving by the Depositor compensation from the Fund on his deposit doesn’t exclude his/her right for the satisfaction of the claims to the bank at the amount exceeding received compensation on his deposit.
Article 12. Loan Extension to the Fund
In case of the shortage Fund’s means for the compensation payment on the citizens’ deposits at the decision of the Cabinet of Ministers of the Republic of Uzbekistan the loan shall be extended to the Fund with its following repayment at the expense of earnings to the Fund.
Article 13. Information Exchange between the Fund and the Central Bank of the Republic of Uzbekistan
The Fund and the Central Bank of the Republic of Uzbekistan execute constant information exchange required for the performance of the Funds’ authorities by the Fund.
Article 14. Non Disclosure of the Bank Secret
The Fund guarantees not to disclose the bank’s secret. In case of the Bank’s secret disclosure by the Fund and also a depositor whose rights have been violated have the right to demand compensation of the incurred to them losses.
Article 15. Disputes Settlement
Disputes related to the guaranteeing of the citizens’ deposits in the bank shall be settled according to the order established by the legislation.
Article 16. Responsibility for the Legislation Infringement On the Guaranteeing of the Citizens’ Deposits in the Banks
Persons, guilty of the legislation infringement regarding guaranteeing of the citizens’ deposits in the banks, shall bear responsibility at the established order.
