Article 1. The basic concepts used in this Law of the Law on Microfinance Activities

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For the purposes of this Law, the following basic concepts are used:

1) excluded by the Law of the Republic of Kazakhstan dated 07/03/2020 No. 359-VI (effective from 01/01/2021);

1-1) an electronic trading platform for the sale of banking and microfinance assets is an online resource that provides an infrastructure for bidding participants, operating in accordance with the Law of the Republic of Kazakhstan "On State Regulation, Control and Supervision of the Financial Market and Financial Organizations";

2) credit dossier – documents and information generated by an organization engaged in microfinance activities for each borrower;

3) borrower – a natural or legal person who has concluded a contract with an organization engaged in microfinance activities for the provision of a microcredit;

3-1) trust management agreement for rights (claims) – a trust management agreement for rights (claims) under a bank loan agreement, a micro-loan agreement concluded between a service company and a person specified in paragraph 1 of Article 63 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", or a person specified in part the first of paragraph 5 of Article 9-1 of this Law, or an insurance (reinsurance) organization;

4) microcredit – money provided by an organization engaged in microfinance activities to a borrower in the national currency of the Republic of Kazakhstan in the amount and in accordance with the procedure established by this Law, on the terms of payment, urgency and repayment;

5) an organization engaged in microfinance activities – a microfinance organization, a credit partnership, a pawnshop engaged in the provision of micro-loans;

6) excluded by the Law of the Republic of Kazakhstan dated 02.01.2021 No. 399-VI (effective from 01.01.2021);

6-1) a major participant in an organization engaged in microfinance activities is an individual or legal entity that directly or indirectly owns ten or more percent of the shares in the authorized capital or voting (minus preferred) shares of an organization engaged in microfinance activities.;

6-2) impeccable business reputation – professionalism and integrity of a person, confirmed, among other things, by the absence of facts:

the commission by the specified person of illegal actions (inaction) that led to insolvency, which led to the compulsory liquidation of a financial institution, or to the application of a settlement regime to the bank;

the person's outstanding or outstanding criminal record, including the absence of a judicial act that has entered into legal force on the application of criminal punishment to a person in the form of deprivation of the right to hold the position of a senior employee of a financial institution, a banking and (or) insurance holding company and to be a major participant (major shareholder) of a financial institution for life;

the existence of relations with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized financial monitoring body;

7) the applicant is a natural or legal person who has submitted an application to an organization engaged in microfinance activities for obtaining a microcredit;

7-1) a service company is a subsidiary organization for the management of stress assets, a collection agency that has, under a trust management agreement, rights (claims), powers for the trust management of rights (claims) under a bank loan agreement, a micro–loan agreement, including with respect to:

changes in the terms of the bank loan agreement, the micro-loan agreement;

representation in court of the interests of the person with whom the contract of trust management of rights (claims) is concluded;

receiving money and (or) other property from the debtor;

other powers provided for by this Law, other laws of the Republic of Kazakhstan and (or) the contract of trust management of rights (claims);

7-2) consumer microcredit – a microcredit that is not a microcredit secured by a mortgage of real estate, provided to an individual for the purchase of goods, works, services and (or) other purposes not related to the implementation of entrepreneurial activities;

8) authorized body – a state body that carries out state regulation, control and supervision of the financial market and financial organizations.

The Law of the Republic of Kazakhstan dated November 26, 2012 No. 56-V.

This Law regulates public relations related to the provision of micro-loans, establishes the specifics of the creation and reorganization of organizations engaged in microfinance activities, the legal status, activities of organizations engaged in microfinance activities, and also defines the specifics of state regulation of organizations engaged in microfinance activities, control and supervision of their activities.

President

Republic of Kazakhstan

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