A bank affiliate shall have the charter fund which is the same for the bank, the balance sheet and also the name which is fully identical with the name of the bank.
2. A bank shall be obliged to obtain the consent of the National Bank to open or merge its affiliate.
The issue of granting consent to open a bank affiliate must be handled by the National Bank within three months.
3. The following documents must be attached to application to obtain consent to open a bank affiliate:
a) articles concerning the bank affiliate, which include the list of banking transactions which the affiliate is authorized to carry out;
b) information concerning candidates to the position of Chief Executive and the Chief Accountant of the bank affiliate, compiled in accordance with the requirements of sub-paragraph g) of paragraph 3 of Articles 19 of this Edict.
4. Consent of local representative or executive bodies shall not be required for the formation of a bank, a bank affiliate or representation in the Republic of Kazakhstan.
5. Any of the following may be the reasons for denying the approval of opening a bank affiliate:
a) non-compliance of candidates for positions of the Chief Executive and Chief Accountant of the bank, with the minimum requirements established by paragraphs 3-5 of Article 20 of this Edict;
b) non-compliance of premises and equipment of the bank with the normative documents of the National Bank;
c) non-compliance by the bank with prudential requirements established by the National Bank;
d) violation of current legislation and normative acts of the National Bank.
6. Representation of a bank shall be a sub-division of a bank, which is not a legal entity located outside of the place of "the bank location, which acts for and on behalf of the bank, and which does not carry out banking transactions.
7. The following documents must be attached to an application to be granted the consent to open a representation of a bank which is non-resident to Kazakhstan:
a) foundation documents of the applicant bank;
b) a resolution of the relevant authority of the bank to open a representation in the territory of the Republic of Kazakhstan;
c) a written confirmation by a body of banking supervision of the relevant state that the applicant bank has a valid license for conducting banking operations;
d) a duly formulated annual report of the applicant bank (including the consolidated balance-sheet and the profit and loss account) for the last financial (operational) year confirmed by a firm of auditors which meets the requirements of paragraph 4 of Article 19 of this Edict;
e) a written notification of a banking supervision authority of the relevant state that the authority does not object to the opening of the representation of the applicant bank in the territory of the Republic of Kazakhstan, or the statement of a banking supervision authority or recognized legal service of the relevant state, that such permission is not required in accordance with legislation of the applicant bank state;
f) information on intended number of employees of the representation and on its manager.
Chapter 3. Performance of Banking Operations
Article 30. Banking Operations
1. Performance by banks of banking transactions as well as conducting of any other transactions established by this Article shall be banking operations.
2. The following shall be referred to banking transactions:
a) acceptance of deposits from legal entities;
b) acceptance of deposits from physical persons;
c) opening and keeping correspondent accounts of banks and nonbanking financial institutions and also of metal accounts of banks;
d) cash transactions; receipt, counting, breaking into smaller denominations, exchange, packing and safe custody of coins;
e) transfer operations" execution of instructions of legal entities and physical persons in relation to transfers of monetary resources;
f) accounting transactions: accounting (discounting) for bills of exchange and any other debt obligations of legal entities and physical persons;
g) loan transactions: issuing of loans in monetary form;
h) financing capital investments in accordance with instructions of owners and managers of resources to be invested;
I) trust transactions: management of monetary resources in the interests and in accordance with instructions of the trustor;
j) clearing transactions: collection, matching, sorting curt and confirmation of payments as well as their offset and determination of the net positions of clearing participants;
k) safe custody transactions: services associated with Safe custody of securities, documents and valuables of clients, including leasing of safe boxes, cases and premises;
m) pawn-shop transactions: issuing of short-term loans secured with deposited liquid securities and movable assets;
n) issue of cheques;
o) collection, acceptance, payment and sight of payment documents;
p) issue of payment cards;
q) collection and shipment of banknotes, coins and valuables;
r) organization of exchange transactions involving foreign currency. Only the National Bank shall have the right to issue licenses to banks and any other entities for conducting of the incited transactions.
The right to conduct transactions stipulated in subparagraphs a) and b) of this paragraph shall be granted by the National Bank exclusively to deposit banks.
3. Aside from the transactions listed in paragraph 2 of this Article, banks shall have the right to carry out the following transactions, provided they have the license from the National Bank:
a) purchase, acceptance as pledge, accounting for, safe custody and selling of precious metals (gold, silver, platinum, metals of platinum group) in bullion, granules, powers, salts, coins of precious metals, as well as jewellery items which contain precious metals and precious stones;
b) investment transactions beyond the boundaries of the Republic of Kazakhstan;
c) guarantee transactions; issuing of warranties and any other obligations for third parties, which envisages execution in monetary form;
d) hiring of assets with the reservation for the entire term of the agreement of the lessor's lien in respect of assets to be leased (leasing);
e) issue of own securities (shares, debentures, bills of exchange and certificates of deposit);
f) factoring transactions: purchase of claims of payment from buyers of goods (work, services) under the risk of default of payment;
g) forfeiture transactions (forfeiting): payment of debts of buyers of goods (work, services) by way of purchase of the bill whithout recourse to seller.
4. Intermediary transactions In the securities market shall be carried out by banks under the licenses relating to conducting of those transactions, from the National Commission of the Republic of Kazakhstan for Securities and consent from the National Bank.
Article 31. General Requirements to Transactions to Be Performed by Banks
1. Banks shall have the right to carry out banking activities only when they have the rules which define the general terms for performing transactions and their internal rules.
2. The general terms for performing transactions must be approved by the Supervisory Council of the Bank and contain the following information and procedures:
a) range of amounts and terms of deposits to be accepted and loans to be issues;
b) range of amounts of interest on deposits and loans;
c) terms for payment of interest on deposits and loans;
d) requirements relating to acceptable pledge;
e) rates and tariffs for performing of banking transactions;
f) rights and obligations of the bank and the client, their responsibilities;
g) any other terms, requirements and restrictions which by the Supervisory Council of the Bank are deemed to be necessary to be included among the general terms for performance of transactions.
3. Internal rules of a bank must define the following:
a) structure, objectives, functions and authority of bank's subdivisions;
b) structure, objectives, functions and authority of the internal audit service, credit committee and other permanently operating bodies;
c) rights and obligations of managers of structural sub-divisions;
d) authority of officials and executives of the banks when entering transactions for and on behalf of the bank.
Article 32. Obligations of the Bank in Relation to Disclosure of General Terms for Conducting Transactions
1. General terms for conducting transactions shall be public information and it may not constitute a commercial " or banking secret.
This provision shall not apply to terms for performing specific transactions which is either referred to banking secrecy in accordance with this Edict, or is referred by the bank to the category of commercial secrets in accordance with current legislation.
2. Banks shall be obliged to present their General Terms for Conducting Transactions at the first request of a client.
3. Banks shall not have the right to deny clients their information on possible risks relating to implementation of transactions.
Article 33. Contractual Nature of Relations Between the Bank and the Client
1. Relations between banks and also between banks and their clients shall be carried out on the basis of agreements, unless it is otherwise stipulated in legislation of the Republic of Kazakhstan.
2. Clients (depositors) of a bank, which are legal entities, shall have the right to open settlement, current accounts and accounts equated to those, in any other banks with notifying their servicing bank, unless it is otherwise stipulated in legislation of the Republic of Kazakhstan.
Article 34. Issuing of Loans
1. Irrespective of the name of the transaction and intentions of the parties, issuing of monetary resources [by an entity] to any other entity in its own name under its own risk on the terms of repayment and for a fee, shall be a loan transaction (granting of credit) .
The license of the National Bank shall not be required for a loan transaction when the receiver of the monetary resources is a bank or a non-banking financial institution which has a valid license of the National Bank for acceptance of deposits.
2. Loan transactions of banks shall be carried out in accordance with its credit policies to be approved by the supervisory council.
3. Credit Committee of a bank shall be the body to define its credit policies.
4. Articles on internal credit policies shall be elaborated for the purposes of reducing risks when performing loan transactions, and they shall define the following:
a) terms for granting loans to legal entities and physical persons;
b) terms for granting loans to officials and employees of the bank;
c) organizational structure, functions and authority of the credit committee;
d) responsibility of the credit committee members;
e) range of loans;
f) procedure for approval of credit agreements.
5. Provisions established in paragraphs 2-4 of this Article shall apply to quarantine transactions of banks.
Article 35. Ensuring Repayment of Loans
1. Repayment of loans may be ensured by forfeiture, pledge, guarantee, warranty or any other methods stipulated in legislation or agreement.
2. In the case of high credibility and reliability of the client, the bank shall have the right to adopt the decision to issue a loan without any security (blank credit).
3. In the cases, stipulated in the pledge agreement, as well as legislative acts, a bank shall have the right to independently sell pledged assets in a compulsory non-judicial procedure by way of holding sales (auctions).
4. The provisions established in paragraphs 1-3 of this Article shall apply to securing of guarantee transactions of banks.
Article 36. Measures Applicable to Insolvent Borrowers
A creditor bank shall have the following rights in relation to its borrower which does not execute the borrower's obligations under the credit agreement:
not to issue any new loans;
impose claims upon monetary resources kept in any accounts of the borrower (provided this is stipulated in the credit agreement);
appeal to the court with the application to recognize an insolvent borrower as bankrupt in accordance with legislation of the Republic of Kazakhstan.
Article 37. Statutes of Limitations
Statutes of limitations shall not apply to banks" claims to their borrowers in relation to improper implementation of credit agreements" provisions.
Article 38. Performance of Transfers of Monetary Resources
1. Banks shall carry out transfers of monetary resources in forms, by methods and in the procedure to be established by the National Bank.
2. In the case of improper execution of transfers of monetary resources a bank shall be held responsible in accordance with legislation of the Republic of Kazakhstan and the agreement concluded with the client (depositor).
3. International transfers of monetary resources shall be carried out by banks in forms, by methods and in the procedure used in International banking practice and which do not contradict current legislation of the Republic of Kazakhstan.
4. A bank shall have the right to write off monetary resources from clients" (depositors") accounts without their consent, provided there are documents which confirm forgery of payment documents, and also when the fact is established of their inclusion by mistake.
Article 39. Rates and Tariffs
Interest rates and commissions as well as tariffs for rendering of banking services shall be established by banks independently.
Article 40. Prohibition to Grant Privileges to Entities Associated with Banks by Special Relations
1. Banks shall be prohibited from granting privileged terms to persons who are associated with the bank by special relations.
2. The following shall mean granting of privileged terms:
entering of a transaction which due to transaction's nature, objectives, specific features and the risk, the bank would not enter with clients which are not entities associated with it by special relations;
levying of interest and payment for execution of a banking transaction or acceptance of a pledge which are lower than those required from other clients.
3. The following shall be recognized as entities associated with the bank by special relations:
a) any official person or executive of that bank and their close relatives;
b) a physical person which is a major shareholder of that bank, or an official person of a large participant of the bank, as well as their close relatives;
c) a legal entity in which the persons indicated in sub-paragraphs a) and b) of this paragraph are major participants;
d) a legal entity in which that bank is a major participant, officials of that legal entity and their close relatives.
4. Direct or indirect owner of more than ten per cent of shares (contributions of participants) with the voting rights in that legal entity shall be recognized as a malar participant of a legal entity.
5. A entity associated by special relations with one of a group of interrelated legal entities shall be recognized as an entity associated by special relations with each one of them.
6. Two and more legal entities shall be recognized as a group of interrelated legal entities even where only one of them is a major participant of the other.
7. Granting of a loan to an entity associated with the bank by special relations (issuing of a guarantee for the entity which is associated with the bank by special relations) may be carried out only by resolution of the Supervisory Council of that bank subject to provisions of paragraph I of this Article.
Chapter 4. Regulation of Banking Activities and Protection of
Depositor's Interests
Article 41. Methods of Regulating Banking Activities
For the purposes of ensuring financial stability of banks, protection of the interests of their depositors and also in order to support the stability of the monetary and credit system of the Republic of Kazakhstan, the National Bank shall carry out regulation of banking activities, in particular as follows:
by establishing prudential requirements and other norms and limits which are compulsory for banks' compliance, including norms of reserve provisions, provisions against doubtful and bad assets;
by issuing of instructions and other normative acts which are compulsory for banks" compliance;
by reviewing (auditing) activities of banks;
by issuing of recommendations for rehabilitation of banks" financial position, concerning suspension or restriction of certain types of banking transactions which involve higher risks.
Article 46. Limited Measures of Persuasion
1. In the cases where the National Bank identifies violations of prudential requirements and other norms and limits which are compulsory for compliance, violations of instructions and other normative acts of the National Bank, or reveals unlawful acts or failure to act by official persons and employees of the bank, which may threaten its financial safety and stability and also the interests of its depositors, clients and correspondents, the National Bank shall have the right to apply to the bank one of the following measures of persuasion:
a) require an obligatory letter;
b) compile a written agreement with the bank;
c) issue a warning;
d) issue a written prescription which is compulsory for execution.
2. An obligatory letter of a bank must contain the fact of recognition of existing drawbacks and a guarantee of the bank's management to eliminate them within specifically defined periods, counting also the list of scheduled measures.
3. A written agreement means an agreement between a bank and the National Bank concerning the necessity to immediately eliminate identified drawbacks and to approve priority measures in relation thereto.
4. A written prescription of the National Bank means ordinance to a bank to adopt correction measures aimed at elimination of identified drawbacks within established deadlines. Correction measures shall be indicated in the written prescription and they shall represent measures which are compulsory for execution as indicated in Article 45 of this Edict.
Challenging of a written prescription of the National Bank at court shall not suspend its execution.
5. A bank shall be obliged to notify the National Bank on the execution of the obligatory letters written agreement or written prescription within the deadlines indicated In that document.
6. A written warning shall be a notice by the National Bank on a possibility of applying to the bank of the sanctions stipulated in Article 47 of this Edict in the case where existing drawbacks are not eliminated within the deadlines established by the National Bank.
Article 47. Sanctions
1. The National Bank shall have the right to apply sanctions to a bank irrespective of persuasion measures applied to it earlier.
2. The National Bank shall have the right to apply the following measures as sanctions:
a) imposition and confiscation of fine on the bases established by legislation of the Republic of Kazakhstan;
b) suspension or annulment of the license for conducting all or certain banking transactions, on the bases established by Article 48 of this Edict;
c) conservation of a bank on the bases and in accordance with the procedure established in Articles 62-67 of this Edict;
d) revocation of a permission to open a bank, on the bases stipulated in Article 49 of this Edict.
Article 48. Bases for Suspending or Annulment of Licenses for Conducting of All or Certain Banking Transactions
1. Suspension or annulment of licenses for conducting of all or certain banking transactions shall be carried on one of the following bases:
a) non-compliance in the course of banking activities with the requirements of Article 20, sub-paragraph b) of paragraph I of Article 22, paragraph 6 of Article 26 of this Edict;
b) carrying out banking transactions with systematic (three and more times within twelve consecutive calendar months) violation of the norms of current banking legislation;
c) systematic (three and more times within twelve consecutive calendar months) improper execution of contractual obligations in relation to settlement and transfer transactions;
d) systematic (three and more times within twelve consecutive calendar months) violation of prudential requirements and other norms and limits which are compulsory for compliance as established by the National Bank;
e) non-compliance with the obligation to disclose the General Terms for conducting banking transactions established by Article 32 of this Edict;
f) violation of the prohibition established by Article 40 of this Edict in respect of granting privileges to entities associated with the bank by special relations;
g) non-presentation to the National Bank, or presentation of deliberately misleading reports and information;
h) violation of the normative acts of the National Bank.
2. The National Bank shall suspend or annul licenses for conducting of all or certain banking transactions in relation to the nature of a violation.
3. Annulment of a license for acceptance of all types of deposits and performance of loan transactions shall entail revocation of the permission to open the bank.
Article 49. Bases for Revocation of a Permission to Open a Bank
1. The revocation of a permission to open a bank shall be carried out upon any one of the following bases:
a) establishing within one year after the date of registration of a bank of unreliability of information on the basis of which that permission was issued;
b) delays in beginning to perform banking transactions for more than one year from the date of the state registration of the bank or thirteen months from the date of receiving the permission;
c) non-payment of the charter fund within one year after the registration of the bank;
d) performance of activities prohibited and restricted for banks in accordance with the provisions of Article 8 of this Edict;
e) performance by bank of transactions which are beyond the bounds of the bank's legal capacity as established by this Edict, the charter of the bank and the license (licenses) for conducting banking transactions;
f) decision of the bank to voluntarily cease its activities by way of reorganizing or liquidating;
g) bankruptcy of the bank.
2. A decision to revoke the permission to open a bank shall entail annulment of all earlier issued licenses for conducting banking transactions and it shall be the decision to liquidate the bank in the procedure established by this Edict.
Article 50. Banking Secrecy
1. The banking secrecy shall include information concerning existence, owners and numbers of accounts of depositors, clients and correspondents of the bank, concerning balances and movements of monetary resources in those accounts and accounts of the bank itself, concerning the bank's transactions (except for General Terms for Conducting Banking Transactions), as well as information concerning existence, owners, nature and value of clients assets which are kept in safe boxes, cases and premises of the bank.
2. Banks shall guarantee secrecy in respect of transactions and deposits of their depositors, clients and correspondents, as well as the secrecy of assets which are in safe boxes, cases and premises of the banks.
3. Official persons, employees of banks and any other persons which by virtue of exercising of their service duties have received access to information which constitutes a banking secret, shall be held criminally responsible for disclosure, except for the cases stipulated in paragraphs 4-8 of this Article.
4. A banking secret may be disclosed only to the owner of the account (assets), to any third party on the basis of the written consent of the account (assets) owner, issued during his personal presence in the bank, as well as to the persons indicated in paragraphs 5-8 of this Article for reasons stipulated thereunder.
5. Reference documents concerning availability and numbers of accounts (except for anonymous accounts) shall be issued to the bank to which the owner of the accounts) is a borrower, guarantor, warrantee, trustor or pledger, on the basis of a written request signed by the chairman of the board of the bank, or by person substituting for him, provided the documents are presented which confirm receipt of a loan.
6. Reference documents concerning balances and movements of monetary resources in the accounts of a legal entity shall be issued to the following:
a) bodies of inquire and preliminary investigations in relation to the cases which are being processed by them;
b) courts: in relation to the cases which are processed by them on the basis of the court decision;
c) tax authorities: in relation to issues associated with personal taxation of those under audits;
d) customs authorities: where foreign economic activities are carried out.
7. Reference documents concerning balances and movements of monetary resources in the accounts a physical person as well as information concerning the nature and value of his assets which are kept in safe boxes, cases and premises of a bank shall be issued to the following:
a) representatives of the physical person: on the basis of a notarially confirmed power of attorney;
b) bodies of inquire and preliminary investigation: in respect of the criminal cases processed by them in the cases where a seizure or claim may be imposed upon the monetary resources and any other assets of the physical person, which are in the account or safe custody of the bank, or confiscation of the assets;
c) courts: in respect of the cases which are processed by them on the basis of a court decision in the cases where a seizure or claim may be imposed upon the monetary resources and any other assets of the physical person, which are in the account or safe custody of the bank, or confiscation of the assets;
d) tax authorities: in relation to issues associated with personal taxation of those under audits;
e) customs authorities: where foreign economic activities are carried out.
8. Reference documents concerning existence of accounts of a physical person and concerning balances of monetary resources in them, as well as information concerning existence, nature and value of his assets which are kept in safe boxes and premises of the bank, in the case of the owner's demise, shall be issued to the following:
a) persons who are indicated by the owner of the account (assets) in the testator's will;
b) courts and notary offices: in relation to inheritance cases which are processed by them;
c) foreign consular institutions: in relation to inheritance cases which are processed by them.
Article 51. Imposition of Seizure and Claim Upon Monetary Resources and Assets Which are In a Bank
1. Seizure may be imposed upon monetary resources and any other assets of a legal entity or physical person, which are kept in a bank only on the basis of court decisions (verdicts) and resolutions of the bodies of inquire and preliminary investigation. Any expenditure transactions in the settlement accounts or any other accounts, except for correspondent accounts may be suspended by decisions of the tax and customs authorities, and claims may be applied only on the basis stipulated in legislation of the Republic of Kazakhstan.
2. Confiscation of monetary resources and other assets of a legal entity and a physical person, which are kept in a bank may only be carried out on the basis of a court decision (verdict) which entered into force.
Article 52. The System of Collective Insurance of Deposits
For the purposes of protecting the interests of depositors, banks shall have the right to carry out collective insurance of deposits by way of participating in interbank organizations, whose object of activities it is to insure against the risks of non-repayment of deposits for the purposes of compensating possible losses of depositors up to a fixed or otherwise determined amount In the case of the bankruptcy or termination of banking activities.
Chapter 5. Accounting and Reporting
Article 53. Financial (Operational) Year of a Bank
Financial (operational) year of a bank shall begin on the 1st of January and it shall end on the 31st of December. In the event that the registration of a bank is carried out after the 1st of January, then the first financial (operational) year shall begin from the date of the state registration of the bank and it shall expire on the 31st of December of the same year.
Article 54. Accounting and Reporting at Banks
1. Methodology and the rules for accounting in banks, the list, pro-formas, and deadlines for presentation of accounting, banking and any other reports, as well as responsibility for their violation, shall be established by the National Bank.
2. Banks shall be obliged to present to the National Bank, in pursuance of its request, any information concerning their assets, including those which are beyond the boundaries of the Republic of Kazakhstan, amounts accepted as deposits and loans granted, banking transactions performed and being performed, and any other information including information which constitutes banking secrets.
3. Employees of the National Bank shall be prohibited to divulge or transfer to any third parties information received in the exercise of the rights established by paragraph 2 of this Article.
Article 55. Publication of the Principal Indicators of Banking Activities
Banks shall publish annual reports including the annual balance-sheet and profit and loss account in accordance with the pro-formas and within the deadlines established by the National Bank, after confirmation by a firm of auditors (an auditor) which complies with the requirements of paragraph 4 of Article 19 of this Edict, of the reliability of information presented in them, and after the approval of the annual balance-sheet and profit and loss account by the annual meeting of the bank's shareholders.
Article 56. Registration and Storing of Documents
1. Banks shall be obliged to ensure strict accounting for and storing of documents which are used in bookkeeping and in compiling of reports.
2. The list of the principal documents which are subject to storing and the periods for their keeping shall be established by the National Bank.
Chapter 6. Audit of Banking Activities Article
Article 57. Audit of Banking Activities
1. Audit of bookkeeping accounts and reports, souring documents and any other information concerning banking activities may be carried out by a firm of auditors (an auditor) which has the right to conduct audits in accordance with legislation concerning auditing and which complies with the requirements of paragraph 4 of Article 19 of this Edict.
2. The National Bank shall be a single licensor in the territory of the Republic of Kazakhstan, authorized to issue licenses for performing audits of banking activities.
3. Audits of banking activities shall be carried out from the following points of view:
timeliness, fulness, and accuracy of registration of performed banking transactions in accounts and reports;
compliance of performed banking transactions with the requirements of this Edict, current legislation and normative acts of the National Bank;
compliance of performed banking transactions with general terms of their conduct, as well as compliance of the procedure for carrying out banking transactions with the internal Rules of the bank.
4. Results of an audit and their conclusions a firm of auditors (an auditor) shall present in a report to be presented to the Supervisory Council and the board of the bank.
5. A firm of auditors (an auditor) shall be obliged to present to the National Bank upon its request a copy report and information concerning the audit that was carried out.
Article 58. Licensing of Audit Activities in Relation to Banking Activities
1. Any legal entity or a physical person which has the legal capacity ; to carry out auditing in accordance with Law of the Republic of Kazakhstan "Concerning Auditing in the Republic of Kazakhstan hall have the right to apply to the National Bank with an application to be issued the license for the right to carry out auditing of banking activities.
2. Requirements applicable to an applicant and the list of documents to be attached to the application to be issued the license for the right to audit banking activities shall be established by the National Bank.
Article 59. Recognition of the Banking Audit Report as Invalid. Bases for annulment of Licenses for the Right to Audit Banking Activities
1. In any case, an audit report of a firm of auditors (an auditor) shall be recognized as invalid where:
a) the firm of auditors (auditor) is direct or indirect participant of the bank under audit, or its foundation party;
b) an auditor or any of its managers or employees who carry out the audit has the spouses a close relative or a close relative of the spouse who is an executive of the bank under the audit;
c) a firm of auditors (auditor) has monetary obligations to the bank under audit.
2. A license for the right to carry out audits of a bank shall be annulled by the National Bank upon any of the following bases:
a) recognition of audit reports of a firm as invalid for two and more times;
b) divulging or disclosure to third parties (except for the National Bank) of Information obtained in the course of audits and which constitutes banking or commercial secret;
c) a failure to present to the National Bank or presentation of deliberately false reports and information on audits;
d) presentation of deliberately false statements (confirmations) on the issues outlined in paragraph 4 of Article 16, sub-paragraph d) of paragraph 3 of Article 19, sub-paragraphed) of paragraph I of Article 21, sub-paragraph d) of paragraph 7 of Article 29, Article 55 of this Edict;
e) there are not auditor In the firm of auditors who has a valid license from the National Bank for the right to carry out audits of banking activities.
Section II. Terms of Changing the Legal Status and Termination of
Activities of Banks
Chapter 7. Reorganization of Banks
Article 60. General Terms of Reorganization of Banks
1. Reorganization (merger, adjoining, division, appropriation, transformation) of banks may be carried out upon the decision of the general meeting of the shareholders with the permission of the National Bank.
2. The decision of the general meeting of shareholders of a bank shall be the basis for submitting the petition to obtain the permission to carry out reorganization of that bank.
3. The following documents must be attached to the petition to obtain the permission of the National Bank for carrying out the reorganization of a bank:
a) the decision of the supreme authority of the bank to be reorganized;
b) documents which describe envisaged forms, procedure and deadlines for reorganization of the bank;
c) financial forecast of the consequences of the reorganization, including the estimated balance-sheet after its reorganization or/and of the legal entities to be formed as a result of the reorganization of the bank.
4. The petition to be issued the permission for conducting of reorganization of a bank must be processed by the National Bank within two months after the date of its acceptance.
