ON BANKS AND BANKING ACTIVITIES WITHIN THE REPUBLIC OF KYRGYZSTAN

The present Law is called upon to regulate relations in the sphere of the organization and activities of banks within the Republic of Kyrgyzstan in compliance with international banking system standards.

CHAPTER I. GENERAL PROVISIONS

ARTICLE 1. The Concept of the Bank

1. Within the Republic of Kyrgyzstan, any institution which is founded in order to attract deposits or other monetary resources and dispose of these resources in its own name on terms of repayability, usability in making payments, and promptness, as well as to effect settlements on the instructions of clients, shall constitute a bank.

2. A bank shall be a juridical person and shall engage in its activities in compliance with the present Law based on a license issued by the National Bank of the Republic of Kyrgyzstan.

3. The term "Bank" or any phrase employing this term may only be used in a company name or for advertising purposes by institutions which have the right to conduct banking operations in compliance with the present Law.

4. Banks shall be founded using any form of ownership envisioned by the laws of the Republic of Kyrgyzstan (including those involving the attraction of foreign capital).

ARTICLE 2. The Concept of the Deposit

A deposit is a sum of money received by a bank from other persons on terms of repayability, usability in making payments, and promptness, and used by this bank for the crediting of other persons.

ARTICLE 3. The Banking System of the Republic of Kyrgyzstan

The banking system of the Republic of Kyrgyzstan shall consist of:

1. The National Bank of the Republic of Kyrgyzstan, hereinafter referred to within the text of the present Law as the Bank of Kyrgyzstan.

2. Other banks.

3. The activities of the Bank of Kyrgyzstan shall be regulated by the Law of the Republic of Kyrgyzstan entitled "The National Bank of theRepublic of Kyrgyzstan". The provisions of the present Law shall only apply to the Bank of Kyrgyzstan in those cases that are directly envisioned by this Law.

4. The activities of other banks shall be regulated by the present Law, the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan", other legislative acts of the Republic of Kyrgyzstan, the standard acts of the Bank of Kyrgyzstan, and the statutes thereof.

5. The activities of juridical persons in the area of accepting monetary deposits from the populace on terms of repayability, usability in making payments, and promptness, together with the funds used by these juridical persons to meet internal needs, shall be regulated in compliance with the laws of the Republic of Kyrgyzstan.

ARTICLE 4. The Fixing of the Limits of Responsibility of the Republic of Kyrgyzstan and Banks

The Republic of Kyrgyzstan shall not bear responsibility for the obligations of banks. Banks shall not bear responsibility for the obligations of the Republic of Kyrgyzstan.

ARTICLE 5. The Independence of Banks Within the Republic of Kyrgyzstan

1. Banks within the Republic of Kyrgyzstan shall independently organize and engage in their activities within the competence granted them by the present Law and by the other laws of the Republic of Kyrgyzstan.

2. Interference by government executive-command authorities or by government administrative agencies in the resolution of questions relating to banking activities shall not be permitted.

3. During emergency situations (military actions, natural disasters, international conflicts), the Supreme Soviet of the Republic of Kyrgyzstan and the President of the Republic of Kyrgyzstan may, for the purpose of protecting the interests of the Government, issued standard acts which envision the restriction or prohibition of specific types of banking operations, either universally or with respect to certain countries. The validity of these standard acts shall extend for the period of time specified therein.

The liability envisioned by the laws currently in force shall apply to the violation of the requirements set forth in these standard acts.

4. The employees of agencies of government authority and government administrative agencies shall be prohibited from participating in the managerial bodies of banks, even if this is done on a part-time basis while working a full-time job.

ARTICLE 6. Unions and Associations

1. Banks within the Republic of Kyrgyzstan may found unions, associations, or other groups, in which foreign banks can also participate, for the purpose of coordinating their activities and protecting their interests. The activities of such organizations shall be engaged in according to their constituent documents and shall not require a license from the Bank of Kyrgyzstan.

2. Banks shall have the right to organize bank holding companies (finance companies). These companies shall be subject to registration with the Bank of Kyrgyzstan. Nonbanking institutions, firms, or enterprises shall not be permitted to participate in the subject companies.

3. Banks shall be prohibited from using their unions, associations,or other groups (including holding companies) to reach agreements aimed at restricting competition in the banking arena or monopolizing the banking operations market as concerns the fixing of interest rates or the amounts of commissions.

4. The observance of antimonopoly rules shall be monitored by the Bank of Kyrgyzstan, as well as by the agencies founded for this purpose in compliance with antimonopoly laws.

CHAPTER II. THE FOUNDING OF BANKS WITHIN THE REPUBLIC OF KYRGYZSTAN

ARTICLE 7. Bank Founders

Juridical and physical persons, including foreign juridical and physical persons, may be bank founders or partners.

ARTICLE 8. The Requirements Imposed on a Bank Charter

1. A bank charter must contain:

(1) the long and short versions of the bank's name, as well as its location (postal address and other requisites);

(2) a list of the operations conducted by the bank;

(3)capital;

(4) the amount of this statutory capital and a list of the funds setup by the bank;

(5) a provision to the effect that the bank is a juridical person;

(6) a provision concerning the managerial bodies of the bank, their structure, hierarchy, functions, and powers, and;

(7) a procedure for the reorganization or liquidation of the bank. A bank charter may contain other provisions relating to the specific features of a bank's activities as long as these provisions do not run contrary to the laws of the Republic of Kyrgyzstan.

2. Banks must inform the Bank of Kyrgyzstan of any changes made in their constituent documents within one month of the time that these changes are made. If the changes made to constituent documents contain grounds for refusing the issuance of a license, that bank's existing license must then be revoked.

ARTICLE 9. Statutory Capital

1. A bank's statutory capital shall be formed from the funds of its founders and/or partners (including other banks) and shall serve as security for the bank's obligations.

2. Prior to receiving its license, a bank must pay a minimum statutory capital into an institution of the Bank of Kyrgyzstan.

3. The use of budget funds or funds received in credit or on pledge for the formation of this minimum statutory capital is prohibited.

ARTICLE 10. The Registration and Licensing of the Activities of Banks

1. Banks shall achieve the status of a juridical person from the time that they register with the Bank of Kyrgyzstan.

2. The Bank of Kyrgyzstan shall maintain a register (a nationwide Book of Registrations) of banks and shall publish this register in a printed form.

3. Banks shall not be subject to register with local authorities or other agencies.

4. At the same time that they register, banks shall be issued a license granting them the right to conduct banking operations for a fee, the amount of which shall be set by the Government of the Republic of Kyrgyzstan.

5. The liability envisioned by the laws currently in force shall apply to engagement in banking activities without being licensed by the Bank of Kyrgyzstan.

ARTICLE 11. The Documents Needed in Order to Obtain a License

1. In order to obtain a license, bank founders shall submit the following documents to the Bank of Kyrgyzstan:

(1) A request for the issuance of a license;

(2) the bank's constituent documents (its constituent agreement, its charter, and its protocol concerning the adoption of this charter and the appointment of its managerial bodies);

(3) an economic justification for the founding of the bank, prepared in accordance with the procedure specified in the standard act of the Bank of Kyrgyzstan;

(4) data reflecting the professional fitness of the bank's chairman and chief accountant (the criteria for the professional fitness of these individuals shall be specified by the Bank of Kyrgyzstan, with documents confirming the professional merits of newly appointed officials being submitted to the Bank of Kyrgyzstan in the event of a change in the personnel complement of the bank's managerial staff), and;

(5) the conclusion of an auditing firm concerning the financial status of the bank's founders or other data confirming their financial well-being.

2. In addition to the documents mentioned in Paragraph 1 of this Article, the following documents, legalized in accordance with the established procedure, shall also be submitted in order for a bank involving a partnership of Kyrgyz and foreign capital, a foreign bank, or a daughter bank of a foreign bank to obtain a license:

(1) by foreign juridical persons:

(a) the decision of the appropriate agency of the foreign founder (partner) concerning his participation in the founding of a bank or the opening of a daughter bank of a foreign bank within the Republic of Kyrsyzstan;

b) a charter or other document certifying the status of this juridical person and his published balance sheets for the past three years, and;

(c) the written consent of the controlling agency of the country of residence of the foreign founder (partner) for his participation in the founding of a bank or the opening of a daughter bank of a foreign bank within the Republic of Kyrgyzstan, or;

(2) by foreign nationals:

(a) the certification of a first-class foreign bank (according to international practice) concerning the financial solvency of this individual, and;

(b) the recommendations of no fewer than two foreign juridical or physical persons with a known financial solvency.

3. The Bank of Kyrgyzstan may augment the list of documents and requirements essential to the acquisition of a banking license in compliance with international banking practice.

ARTICLE 12. The Time Frame for the Review of a Request for the Issuance of a License

1. A request for the issuance of a license shall be reviewed by the Bank of Kyrgyzstan over a time frame which does exceed four months from the time that this request and all the documents needed for the issuance of a license are received.

2. The time frame for the review of a request for the issuance of a license to a bank in which a foreign investor is participating or to a foreign bank may be extended by the Bank of Kyrgyzstan up to 6 months.

ARTICLE 13. Grounds for Refusal to Issue a License

The Bank of Kyrgyzstan may refuse to issue a license for any of the following reasons:

(1) the failure of the constituent agreement or the bank charter to comply with the laws currently in force within the Republic of Kyrgyzstan;

(2) the failure of the officials listed in Part 4 of Paragraph 1 of Article 11 of the present Law to meet professional fitness criteria;

(3) the nonobservance of the requirements set forth in Paragraph 3 of Article 9 of the present Law, or;

(4) lack of merit for the founding of a bank.

ARTICLE 14. The Founding of Daughter Banks and Branches or Offices of Banks

1. A daughter bank is an independent juridical person, the controlling block of stocks in which belongs the bank's founder (the parent bank).

2. A bank branch is a detached subdivision of a bank which performs.

3. A bank office is a detached subdivision of a bank which is not collocated with the bank and which engages in protecting and representing the interests of that bank, as well as in concluding transactions or completing any other lawful acts in the bank's name, with the exception of banking operations.

4. Branches and offices shall not be juridical persons. They shall be endowed with property by the bank which founded them and shall function on the basis of the Instructions approved by that bank.

5. Banks which have registered with the Bank of Kyrgyzstan shall have the right to open daughter banks, branches, or offices both inside and outside the borders of the Republic of Kyrgyzstan.

6. Branches and daughter banks may be opened outside the borders of the Republic of Kyrgyzstan with the permission of the Bank of Kyrgyzstan.

7. Bank branches may be opened within the Republic of Kyrgyzstan with the permission of the Bank of Kyrgyzstan.

8. Bank offices shall be opened by banks both inside and outside the borders of the Republic of Kyrgyzstan when the Bank of Kyrgyzstan is notified of this fact beforehand.

ARTICLE 15 The specific Features of the Founding of the Daughter Banks, Branches, and Offices of Foreign Banks Within the Republic of Kyrgyzstan

1. Daughter banks of foreign banks may acquire a license to conduct the banking operations permitted by the present Law within the Republic of Kyrgyzstan given the condition that this type of activity is permitted them by the Central Bank of the country in which the parent bank is located.

2. Offices of foreign banks shall be opened with the permission of the Bank of Kyrgyzstan. A bank which opens an office must notify the Bank of Kyrgyzstan of its intention to do so two months prior to the opening of this office.

Instructions governing the procedure for the opening of offices of foreign banks and the activities of these bank offices within the Republic of Kyrgyzstan shall be approved by the Bank of Kyrgyzstan.

3. Only first-class foreign banks (according to international practice) may open branches within the Republic of Kyrgyzstan using a license issued by the Bank of Kyrgyzstan.

ARTICLE 16. The Organization of the Activities and the Property of Banks

1. Banks shall own, use, and dispose of the internal monetary resources, buildings, structures, or other material resources which belong to them in compliance with the present Law and their charters.

2. Banks may put in pledge any property belonging to them given the condition that the value of this pledged property is deducted from their statutory capitals.

3. Banks shall be prohibited from engaging in any types of activities not specified by the license issued them, with the exception of those instances envisioned in Paragraph 4 of this Article.

4. Using their internal resources, banks may participate in the founding of commercial or other firms as long as the following conditions are observed:

(1) the amount of bank funds invested in each nonbanking organization must not exceed 15% of the amount of a given bank's statutory capital, and;

(2) the total amount of the capital invested in nonbanking institutions may not exceed 60% of the amount of a given bank's statutory capital and must be deducted from this bank's statutory capital.

5. Banks must set up reserve funds in an amount of no less than their statutory capitals. This fund is intended for the covering of possible losses and its use for other purpose shall not be permitted.

6. The management of a bank shall be effected by its Board of Directors. This Board of Directors must be made of no fewer than three persons.

ARTICLE 17. Banking Operations

1. Upon acquiring a license, banks may conduct the following types of operations (without there being any special instructions to this effect in their license):

(1) attract deposits and dispose of these deposits in their own name on the terms of repayability, usability in making payments, and promptness by means of an agreement with the borrower;

(2) dispose of their internal resources on the terms of repayability, usability in making payments, and promptness by means of an agreement with the borrower;

(3) open and maintain accounts for individuals and juridical persons in the official monetary resources of the Republic of Kyrgyzstan;

(4) effect settlements on the instructions of clients and correspondent banks, and effect the cash servicing of these accounts;

(5) issue, purchase, settle, receive, store, and certify payment documents (checks, letters of credit, notes, and other documents);

(6) acquire the rights to orders for the delivery of goods and the rendering of services, accept the risks for executing these orders, and collect (forfeiting), as well as purchase and sell (factoring), promissory notes;

(7) render services in the area of the storage of precious metals, gems, and articles made therefrom, as well as foreign currency, securities, and documents;

(8) issue sureties, guarantees, and other obligations for third parties which specify that they be executed in the form of cash;

(9) render counseling and brokering services in line with banking

(10) conduct leasing operations, and;

(11) issue securities and conduct fiducial operations with cecurities on the instructions of clients given the condition that a license has been obtained for these activities in accordance with the procedure established by the laws currently in force.

2. When an additional license has been acquired, banks may engage in:

(1) some or all of the operations listed in Paragraph 1 of this Article using foreign currency;

(2) the purchase and sale of precious metals (with the exception of gold, silver, and platinum), natural precious stones, and articles made therefrom, either inside or outside the borders of the Republic of Kyrgyzstan;

(3) the attraction and disposal of precious metals (with the exception of gold, silver, and platinum) in accounts and in deposits, and the performance of any other operations involving these valuables in compliance with international banking practice, and;

(4) any other operations specifically stipulated in their licenses in compliance with international banking practice.

ARTlCLE 18. The Prohibition of Advertising Which Does Not Correspond to Activities

1. The Bank of Kyrgyzstan shall have the right to require any bank to change or withdraw advertising concerning the activities of that bank if the content of this advertising may lead to confusion on the part of depositors or other individuals.

2. Should a bank fail to comply with this requirement over a specified period of time, the Bank of Kyrgyzstan may publish information concerning the manner in which the subject advertising fails to conform to reality at the expense of the bank that made this advertising public.

3. Liability for intentionally providing the press with information concerning the activities of a given bank which does not conform to reality shall apply in compliance with the laws currently in force.

ARTICLE 19. The Observance of Economic Standards Banks must observe the economic standards established by the Bank of Kyrgyzstan in compliance with the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan".

ARTICLE 20. Deposit Insurance

1. A Committee on Deposit Insurance that possesses the rights of a juridical persons shall be established within the Republic of Kyrgyzstan for the purpose of protecting the interests of bank creditors (depositors). The Instructions governing this Committee on Deposit Insurance shall be approved by the Supreme Soviet of the Republic of Kyrgyzstan.

2. The subject Committee on Deposit Insurance shall have at its disposal a deposit insurance fund created by means of contributions from banks. Should a given bank fall into bankruptcy, the Committee on Deposit Insurance must pay this bank's depositors a fixed sum, the amount of which shall be defined in the Instructions Governing the Procedure for the Formation and Distribution of Fund Resources. The Instructions Governing the Procedure for the Formation and Distribution of Fund Resources shall be approved by the Supreme Soviet of the Republic of Kyrgyzstan.

3. Banks may also opt for forms of deposit insurance other than the one mentioned in this Article. ARTICLE 21 The Organization of Settlements Banks shall effect settlements in the forms accepted within the Republic of Kyrgyzstan and in international banking practice.

ARTICLE 22. The Servicing of the Government Budget Banks must conduct operations relating to the cash implementation of the budget of the Republic of Kyrgyzstan at the instructions of the Bank of Kyrgyzstan.

ARTICLE 23. Interest Rates and the Amounts of Commissions

1. Interest rates and the amounts of commissions for bank operations shall be sets by banks independently, with allowance for the provisions specified in Subparagraph 5 of Paragraph 1 of Article 9 of the Law entitled "The National Bank of the Republic of Kyrgyzstan".

2. When crediting economic and social programs, banks must set preferred interest rates given the condition that the difference between the existing and the preferred rates be reimbursed them from the funds or the agency which made the decision concerning preferred crediting. CHAPTER IV. RELATIONS WITH CLIENTS

CHAPTER 24. The Principles of Interrelationships Between Banks and Clients

1. Credit, settlement, or any other banking service offered to juridical persons or individuals shall be rendered on the basis of an agreement between the bank and the client, with allowance being made for the provisions of the present Law. Any questions which are not addressed in this agreement shall be resolved in compliance with the laws currently in force.

2. Any disputes arising over the course of the execution of the subject agreement shall be resolved by means of judicial procedure.

ARTICLE 25. The Client's Freedom of Choice With Respect to Banks

1. Juridical persons and individuals are free to choose a bank to store their personal funds, or to render credit or settlement services, and may have accounts in one or several banks.

2. Dividends on the deposits of individuals in banks shall not be subject to taxation. Individuals and juridical persons shall be exempt from the payment of government duties when preparing document's concerning the transfer of deposits to their heirs.

ARTICLE 26. The Protection of Clients' Interests and the Responsibility of Banks

1. Banks shall bear responsibility for failing to fulfill the obligations that they have taken upon themselves with respect to clients in compliance with the laws currently in force, unless otherwise specified by an agreement.

Banks shall bear responsibility for payment transmittal time frames. In the event of a delay in payments over and above established time frames, banks shall pay twice the interest rate in effect at that moment in time.

2. Juridical persons and individuals shall dispose of their own resources independently.

3. Within the Republic of Kyrgyzstan, banks (including the Bank of Kyrgyzstan) shall guarantee the secrecy of the transactions, accounts, and deposits of their clients and correspondents, including former clients and correspondents, with the exception of the cases envisioned in Paragraph 4 of this Article.

4. Information concerning the transactions, accounts, or deposits of juridical or physical persons must be turned over to:

(1) the holders of these accounts or their legal representatives;

(2) investigative agencies or the courts as concerns matters for which an official inquiry is being conducted, and;

(3) tax inspectorates as concerns matters of taxation.

5. All the juridical persons listed in Paragraphs 3 and 4 of this Article, as well as their employees, shall bear responsibility under the laws currently in force for divulging a secret acquired over the course of the performance of their duties.

6. Bank employees shall report suspicious transactions and transactions which, according to the criteria specified in the standard act of the Bank of Kyrgyzstan, involve the "laundering" of money to those law enforcement agencies which are charged with detecting financial machinations and money "laundering" operations in the banking sphere. In such instances, bank employees shall be exempt from responsibility for divulging a banking secret.

7. In the event of the death of an account holder or depositor,information concerning their accounts or deposits shall be released to the those persons designated by the account holder or depositor in testamentary instructions prepared for the bank, to government notary offices in connection with inheritance matters that they are handling concerning the deposits of deceased depositors, and to foreign consular establishments.

ARTICLE 27 The Seizure or Imposition of a Penalty on the Monetary Resources and Other Valuables in Banks, and the Suspension of Transactions Through Client Accounts

1. The monetary resources and other material valuables of juridical persons in banks may only be seized at the decision or judgement of a court or under the ruling of investigative agencies, while a penalty may only be imposed through writs of execution issued by the courts.

2. The confiscation of the monetary resources or other material valuables of individuals may only be undertaken on the basis of a sentence that has been legally enforced or a judgement concerning the confiscation of property that has been carried out.

ARTICLE 28. The Rights of Minors With Respect to Deposits

A minor who has made a deposit in a bank shall independently dispose of this deposit.

A deposit which has been made by someone else in a minor's name shall be disposed of:

-- by the minor's parents or legal representatives until the minor reaches l5 years of age, or;

-- by the minor himself, with the permission of his parents or legal representative, after the minor reaches l5 years of age.

ARTICLE 29. Grounds for the Refusal of Services 1. A bank shall refuse credit, settlement, or other services to a client in the following instances:

(1) when the transactions that a client needs are not performed by the bank under its license;

(2) when the documents certifying the juridical status of a client do not conform to the laws currently in force, or;

(3) when the documents for the opening of an account are not filled out in a manner that corresponds to the requirements set forth by the Bank of Kyrgyzstan.

2. A Bank shall have the right to refuse credit, settlement, or any other services to a client when:

(1) it is established that the client has systematically (more than once) violated the rules governing settlements within the Republic of Kyrgyzstan, or;

(2) there have been no transactions through the client's account for a period of six months and the client has been notified of this in writing one month prior to the refusal of services.

CHAPTER V. ACCOUNTING AND REPORTING IN BANKS, AND THE MONITORING OF BANK ACTIVITIES

ARTICLE 30. Accounting and Reporting

1. The regulations governing accounting in banks shall be specified by the Bank of Kyrgyzstan.

2. The number and types of reports submitted to the Bank of Kyrgyzstan shall be specified by the Bank of Kyrgyzstan.

3. Banks shall bear responsibility under the laws currently in force for the reliability of the information and reports submitted, as well as for retaining bank documents for the specified periods of time.

4. Banks shall publish, in an official publication, a yearly report and a statement of profits and losses in the form and within the time frames specified by the Bank of Kyrgyzstan.

ARTICLE 31. The monitoring of the Activities of Banks and Their Branches

1. The monitoring of the activities of banks and their branches shall be undertaken by:

(1) the Bank of Kyrgyzstan, in compliance with the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan", and;

(2) tax inspectorates with respect to matters of taxation.

2. Inspectors who are sent to a bank must have written confirmation of their authority, either from the Bank of Kyrgyzstan or from a tax inspectorate, respectively.

ARTICLE 32. Auditor's Inspections

The activities of banks shall be subject to a yearly inspection by auditing firms which have been authorized to perform such inspections in compliance with the laws of the Republic of Kyrgyzstan.

CHAPTER VI. FINAL PROVISIONS

ARTICLE 33. The Discontinuation of the Activities of Banks

1. The Bank of Kyrgyzstan may revoke a license to conduct banking operations, which constitutes a decision to liquidate a bank, in the following instances:

(1) the discovery that information which served as the basis for the issuance of the a was untrue;

(2) a delay by a bank of more than one year from the time of registration before commencing it activities;

(3) engagement in operations which are prohibited by the present Law;

(4) engagement in operations which are not envisioned by the bank's license;

(5) the admission by a bank that it is bankrupt in compliance with the laws currently in force, but then only at the initiative of the Bank of Kyrgyzstan;

(6) the violation by a bank of the requirements set forth in antimonopoly laws;

(7) ln those instance envisioned by the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan", or;

(8) for the daughter bank of a foreign bank if this same action has been taken against a Kyrgyz bank operating within the corresponding country.

2. The activities of banks may be discontinued for other reasons which are envisioned by the laws currently in force.

3. The revocation of a license constitutes an extreme measure, which must be preceded by preliminary steps aimed at rectifying admitted violations.

4. A bank may discontinue its own activities and surrender its license to conduct banking operations only when its notifies the Bank of Kyrgyzstan of this beforehand.

A bank must notify its depositors and credits of its intention to surrender its license by means of publishing this information in an official publication no less than 2 months prior to the surrender of the said license.

ARTICLE 34. Banks Founded on the Basis of International Treaties

The validity of the present Law shall not extend to banks located within the Republic of Kyrgyzstan and founded on the basis of the international treaties of the Republic of Kyrgyzstan.

A.AKAYEV
PRESIDENT OF THE REPUBLIC OF KYRGYZSTAN

RESOLUTION OF THE SUPREME SOVIET
OF THE REPUBLIC OF KYRGYZSTAN

"ON THE PROCEDURE FOR THE ENACTMENT OF THE LAW OF THE REPUBLIC
OF KYRGYZSTAN ENTITLED "BANKS AND BANKING ACTIVITIES
WITHIN THE REPUBLIC OF KYRGYZSTAN'"

The Supreme Soviet of the Republic of Kyrgyzstan r e s o l v e s:

1. To enact the Law of the Republic of Kyrgyzstan entitled "Banks and Banking Activities Within the Republic of Kyrgyzstan".

2. To recognize as having become invalid the Law of the Republic of Kyrgyzstan dated 28 June 1991 and entitled "Bank and Banking Activities Within the Republic of Kyrgyzstan".

3. To stipulate that the guarantees of the Republic of Kyrgyzstan concerning the safety and the timeliness of the repayment of deposits made by individuals in the Kyrgyzsberbank prior to the enactment of the present Law shall be preserved until these deposits have been repaid.

4. That commercial banks founded prior to the enactment of the Law of the Republic of Kyrgyzstan entitled "Banks and Banking Activities Within the Republic of Kyrgyzstan" shall not be subject to reregistration if their activities do not run contrary to the subject Law.

5. That the Government of the Republic of Kyrgyzstan shall, prior to1/1/93:

-- introduce before the Supreme Soviet of the Republic of Kyrgyzstan suggestions for bringing the current Laws of the Republic of Kyrgyzstan into compliance with the Law of the Republic of Kyrgyzstan entitled "Banks andBanking Activities Within the Republic of Kyrgyztan";

-- bring the resolutions and decrees of the Government of the Republic of Kyrgyzstan into compliance with the subject Law, and;

-- ensure the review and repeal by the ministries, state committees, and departments of the Republic of any standard acts which run contrary to the present Law.

6. That the National Bank of the Republic of Kyrgyzstan shall, within three months' time, ensure the review and repeal of any of its standard acts which run contrary to the present Law.

M.SHERIMKULOV
CHAIRMAN OF THE SUPREME SOVIET
OF THE REPUBLIC OF KYRGYZSTAN

City of Bishkek, __/__/__

RESOLUTION OF THE SUPREME SOVIET
OF THE REPUBLIC OF KYRGYZSTAN

"ON THE PROCEDURE FOR THE ENACTMENT OF THE LAW OF THE REPUBLIC
OF KYRGYZSTAN ENTITLED 'THE NATIONAL BANK OF THE REPUBLIC
OF KYRGYZSTAN'"

The Supreme Soviet of the Republic of Kzrgzystan r e s o l v e s :

1. To enact the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan" as of the moment of its publication.

2. To stipulate that Paragraph 2 of Article 8 and Paragraph 2 of Article 10 shall come into force as of 1 January 1995.

3. To recognize as having become invalid the Law of the Republic of Kyrgyzstan dated 28 June 1991 and entitled "The Government Bank of the Republic of Kyrgyzstan (The Reserve System of the Republic)", the Resolution of the Supreme Soviet of the Republic of Kyrgyzstan dated 17 December 1991 and entitled "The Procedure for the Opening and Registration of Credit Institutions", and the Resolution of the Supreme Soviet of the Republic of Kyrgyzstan dated 17 December 1991 and entitled "The Payment of Fees for the Issuance of Licenses to Conduct Banking Operations".

4. To stipulate that until the legislation of the Republic of Kyrgyzstan is brought into compliance with the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan", those legislative acts which concern banks and banking activities shall be applicable since these acts do not contradict the present Law.

5. That the Government of the Republic of Kyrgyzstan shall:

-- introducce before the Supreme Soviet of the Republic of Kyrgyzstan suggestions for bringing the existing laws of the Republic of Kyrgyzstan into compliance with the Law of the Republic of Kyrgyzstan entitled "The National Bank of the Republic of Kyrgyzstan";

-- bring the resolutions and decrees of the Government of the Republic of Kyrgyzstan into compliance with the named Law, and;

-- ensure the review and repeal by the ministries, state committees, and departments of the Republic of those standard acts which contradict the aforementioned Law.

6. That the National Bank shall ensure the review and repeal of its standard acts which contradict the present Law.

M. SHERIMKULOV
CHAIRMAN OF THE SUPREME SOVIET OF THE REPUBIC OF KYRGYZSTAN

City of Bishkek, __/__/__