Article 11-2. Subsidiaries of banks acquiring doubtful and hopeless assets of the parent bank, and an organization acquiring doubtful and hopeless assets, whose participants are a bank and an organization specializing in improving the quality of loan portfolios of second-tier banks of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Home / RLA / Article 11-2. Subsidiaries of banks acquiring doubtful and hopeless assets of the parent bank, and an organization acquiring doubtful and hopeless assets, whose participants are a bank and an organization specializing in improving the quality of loan portfolios of second-tier banks of the Law on Banks and Banking Activities in the Republic of Kazakhstan

Article 11-2. Subsidiaries of banks acquiring doubtful and hopeless assets of the parent bank, and an organization acquiring doubtful and hopeless assets, whose participants are a bank and an organization specializing in improving the quality of loan portfolios of second-tier banks of the Law on Banks and Banking Activities in the Republic of Kazakhstan

1. In order to exercise the powers granted to it by Article 8 of this Law, a bank may establish or acquire a subsidiary that acquires doubtful and uncollectible assets of the parent bank only with the prior permission of the authorized body.

The procedure for issuing a permit for the establishment or acquisition by a bank of a subsidiary that acquires doubtful and uncollectible assets of the parent bank is determined by a regulatory legal act of the authorized body.

1-1. The Bank has the right to create (acquire) an organization that acquires doubtful and uncollectible assets, together with an organization specializing in improving the quality of credit portfolios of second-tier banks.

If, as a result of the creation or acquisition of the organization specified in the first part of this paragraph, the bank has a significant participation in the capital of this organization, this participation is allowed only with the prior permission of the authorized body.

A contribution to the authorized capital of an organization specified in part one of this paragraph, established in the organizational and legal form of a limited liability partnership, may be the property specified in the civil legislation of the Republic of Kazakhstan, as well as doubtful and hopeless assets of banks and (or) the rights of claim for doubtful and hopeless assets of a bank acquired by an organization specializing in improving the quality of second-tier banks' loan portfolios.

The organization specified in the first part of this paragraph is obliged to transfer the money received from its activities to its participants (shareholders) in the manner and amounts provided for in the action plan to improve the quality of doubtful and uncollectible assets approved by the general meeting of participants (shareholders) of this organization, with the exception of money allocated to pay expenses related to implementation of the types of activities provided for in paragraph 4 of this Article.

2. A subsidiary acquiring doubtful and uncollectible assets of the parent bank is obliged to transfer the money received from its activities to the parent bank, with the exception of money used to pay for expenses related to the activities provided for in paragraph 4 of this article.

3. The procedure for the activities of a subsidiary acquiring doubtful and hopeless assets of the parent bank, the period during which the subsidiary manages the acquired doubtful and hopeless assets, as well as the requirements for the doubtful and hopeless assets acquired (acquired) by it, are established by a regulatory legal act of the authorized body.

4. A subsidiary of a bank acquiring doubtful and hopeless assets of its parent bank, as well as an organization acquiring doubtful and hopeless assets, whose participants are the bank and an organization specializing in improving the quality of second-tier banks' loan portfolios, may:

1) to acquire and sell doubtful and uncollectible assets of the bank;

2) to acquire and sell movable and immovable property and (or) ownership of construction-in-progress facilities that have become the property of the bank as a result of foreclosure on mortgaged property for acquired doubtful and hopeless claims;

3) to acquire and sell shares and (or) participation shares in the authorized capital of legal entities in cases when they are accepted as collateral (compensation or security) for acquired doubtful and hopeless claims or transfer to the ownership of the parent bank as a result of foreclosure on the pledged property;

4) lease property that has become its property as a result of foreclosure on property that acted as collateral, other security, or received in the form of compensation for doubtful and hopeless claims acquired from the bank, as well as those specified in subparagraph 2) of this paragraph, or use another form of paid temporary use of such property;

5) carry out other types of activities in order to improve the quality of acquired doubtful and hopeless claims or other assets established by a regulatory legal act of the authorized body.

4-1. A subsidiary of the bank that acquires doubtful and uncollectible assets of the parent bank has the right to act as a service company under a trust management agreement for rights (claims).

A subsidiary of the bank that acquires doubtful and uncollectible assets of the parent bank registers in the contract register all trust management agreements for rights (claims) and keeps records of accepted and other documents, the transfer of which is provided for by the trust management agreement for rights (claims).

Within the framework of the trust management agreement for rights (claims), a subsidiary of the bank that acquires doubtful and uncollectible assets of the parent bank has the right:

by agreement of the parties, to change the terms of a bank loan agreement or a micro-loan agreement within the framework of the powers granted by the person with whom the trust management agreement for rights (claims) has been concluded. Unilaterally changing the terms of a bank loan agreement and (or) a micro-loan agreement is allowed in cases of their improvement for the borrower in accordance with Part two of paragraph 3 of Article 34 of this Law and part two of paragraph 6 of Article 3 of the Law of the Republic of Kazakhstan "On Microfinance Activities".;

represent the interests of the person with whom the contract of trust management of rights (claims) has been concluded in court, including in the process of debt collection and (or) foreclosure on the collateral;

to accept from the debtor, in the interests of the person with whom the contract of trust management of rights (claims) has been concluded, money in non-cash form and (or) other property to repay the debt, followed by the transfer of such money and (or) such property in his favor;

use the services of appraisers, auditors, lawyers and other consultants;

to exercise other rights stipulated by the contract of trust management of rights (claims).

Remuneration of a subsidiary of the bank acquiring doubtful and uncollectible assets of the parent bank acting as a service company, as well as expenses related to trust management, are paid (reimbursed) in accordance with the terms of the trust management agreement for rights (claims) by the person who acquired the rights (claims) under bank loan agreements and (or) contracts. about providing a micro-loan.

The borrower and (or) his representative have the right to:

1) to obtain from the person who has concluded a trust management agreement for rights (claims) information about the bank's subsidiary acquiring doubtful and uncollectible assets of the parent bank, its location, the availability of personal data of the borrower, the amount and structure of the debt;

2) apply to a subsidiary of the bank acquiring doubtful and hopeless assets of the parent bank, which carries out trust management in accordance with the trust management agreement for rights (claims), with a statement on changing the terms of the bank loan agreement and (or) the micro-loan agreement related to the fulfillment of obligations under the specified agreement, justifying the reasons for such treatment.

4-2. A subsidiary of the bank that acquires doubtful and uncollectible assets of the parent bank interacts with borrowers within the framework of a trust management agreement for rights (claims), taking into account the requirements provided for in paragraphs 1, 2, 4, sub-paragraphs 1), 3), 4), 5), 6) and 9) paragraph 5 and paragraph 6 Article 5 of the Law of the Republic of Kazakhstan "On Collection activities", and is obliged to comply with the requirements and restrictions within the framework of the contract of trust management of rights (claims)., requirements imposed by the legislation of the Republic of Kazakhstan on the relationship between the creditor and the debtor within the framework of a bank loan agreement and (or) a micro-loan agreement.

A subsidiary of the bank acquiring doubtful and hopeless assets of the parent bank, in the event of a decision to voluntarily terminate its activities or a court decision to terminate the activities of a subsidiary of the bank acquiring doubtful and hopeless assets of the parent bank, is obliged to:

1) within thirty calendar days after the adoption of the above-mentioned decision:

transfer to the person to whom the rights (claims) have been assigned under the bank loan agreement and (or) the micro-loan agreement, or at his direction to the service company with which such person has concluded a new trust management agreement for rights (claims), all information and documents on rights (claims) under the bank loan agreements and (or) microcredit agreements transferred to a subsidiary of the bank acquiring doubtful and uncollectible assets of the parent bank, on the basis of a trust management agreement for rights (claims) as of the date of the decision to voluntarily terminate its activities or the court's decision to terminate its activities;

terminate all concluded contracts of trust management of rights (claims).

The person to whom the rights (claims) have been assigned under a bank loan agreement and (or) a micro-loan agreement, or a service company with which such a person has concluded a new trust management agreement for rights (claims), must ensure that information and documents are received in the case provided for in the second paragraph of subparagraph 1) of part two of this paragraph.;

2) within five calendar days from the date of the adoption of the above-mentioned decision, notify:

persons with whom contracts of trust management of rights (claims) have been concluded, in the ways stipulated by the contract of trust management of rights (claims);

debtors whose rights (claims) under bank loan agreements or microcredit agreements have been transferred on the basis of trust management agreements for rights (claims) in one of the following ways:

by telephone conversations from the phone numbers of the bank's subsidiary, which acquires doubtful and uncollectible assets of the parent bank, for contacts with debtors;

through personal meetings;

by written (postal) notifications sent to the debtor, an individual at the place of residence (legal address), to the debtor, a legal entity at the location (actual address);

by text, voice, and other cellular communications;

via the Internet.

5. The application for permission to establish or acquire a subsidiary that acquires doubtful and uncollectible assets of the parent bank, submitted in the form prescribed by the regulatory legal act of the authorized body, shall be accompanied by the documents and information provided in the sub-paragraphs 1), 2), 3), 4), 11), 13-1) and 14) points 4 of Article 11-1 of this Law, as well as:

1) excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective after ten calendar days from the date of its first official publication);

2) financial statements of the subsidiary for the last completed quarter before submitting the relevant statement – in case of acquisition of the subsidiary;

3) a business plan and an action plan to improve the quality of doubtful and uncollectible assets, the requirements for which are determined by a regulatory legal act of the authorized body.

5-1. The application for permission to participate significantly in the capital of an organization acquiring doubtful and uncollectible assets, created (acquired) jointly with an organization specializing in improving the quality of credit portfolios of second-tier banks, shall be accompanied by the documents and information provided for in subitems 2), 3) and 11) of paragraph 4 of Article 11-1 of this Law and in subitems 2) and 3) of paragraph 5 of this article, as well as a document confirming payment of the fee for granting permission for significant participation in the capital of organizations, except for cases of payment through the electronic government payment gateway.

A refusal to grant permission for significant participation in the capital of an organization acquiring doubtful and uncollectible assets, created (acquired) jointly with an organization specializing in improving the quality of credit portfolios of second-tier banks, is made on the grounds provided for in paragraph 6 of this article.

6. The grounds for refusing to grant permission to establish or acquire a subsidiary that acquires questionable and uncollectible assets of the parent bank are:

1) the grounds provided for in subparagraphs 1), 3) and 4) of paragraph 6 of Article 11-1 of this Law;

2) the non-compliance of doubtful and hopeless assets transferred to a subsidiary with the requirements of paragraph 4 of this article and (or) the requirements of the regulatory legal act of the authorized body.

7. Subsidiaries of banks acquiring doubtful and uncollectible assets of the parent bank, as well as an organization acquiring doubtful and uncollectible assets, whose participants are a bank and an organization specializing in improving the quality of second-tier banks' loan portfolios, are recognized as creditors (lenders) under bank loan agreements by banks and have all rights and obligations of the bank established by the bank loan agreement, the rights of claim for which are assigned by the bank in favor of the organization.

8. Excluded by the Law of the Republic of Kazakhstan dated 24.11.2015 No. 422-V (effective from 01.01.2016).

9. Excluded by the Law of the Republic of Kazakhstan dated 24.11.2015 No. 422-V (effective from 01.01.2016).

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

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