Article 11. The agreement of accession The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

Home / RLA / Article 11. The agreement of accession The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

1. The accession of a bank (a branch of a non-resident bank of the Republic of Kazakhstan) to the accession agreement is a prerequisite for its participation in the mandatory deposit guarantee system.

2. The accession agreement must contain:

1) the full name of the organization providing mandatory deposit insurance, information about its location and bank details;

2) the subject of the contract;

3) rights and obligations of the parties;

4) the procedure for payment of contributions;

5) the procedure, conditions and deadlines for the submission by the participating bank of information required by the organization providing mandatory deposit guarantee to perform its tasks and functions, including information constituting banking and other legally protected secrets, as well as the procedure for their storage by the organization providing mandatory deposit guarantee;

5-1) the procedure for the organization carrying out mandatory deposit guarantee measures to establish compliance with the requirements of the agreement by the participating banks, including automated accounting of the obligations of the participating bank for guaranteed deposits and the amounts of guaranteed compensation, determined by the governing body of the organization carrying out mandatory deposit guarantee;

6) the procedure for calculating by participating banks their obligations under guaranteed deposits and the amounts reimbursed for them by the organization providing mandatory deposit guarantee in the event that the participating bank is deprived of its license to conduct all banking operations.;

7) terms of termination of the agreement;

8) terms and conditions on the liability of the parties for violation of the agreement, including the right of the organization providing mandatory deposit guarantee to withdraw from the bank accounts of the participating bank the amounts of unpaid contributions in full or in part, as well as penalties for non-fulfillment by the participating bank of its obligations under the agreement.;

9) the procedure and conditions for refunding the amount of the guarantee refund paid by the organization providing mandatory deposit guarantee in the event of cancellation of the decision of the authorized body to revoke the participant bank's license to conduct all banking operations.

10) the obligation of the participating bank, within five working days from the date of inclusion in the register of banks participating in the mandatory deposit guarantee system, to conclude an agreement with the organization providing mandatory deposit guarantee defining the conditions and procedure for connection and access to the electronic payment portal.

3. The agreement of accession shall enter into force from the moment information is entered into the register of banks participating in the mandatory deposit guarantee system and shall be terminated in the event of exclusion of the participating bank from the mandatory deposit guarantee system.

The Law of the Republic of Kazakhstan dated July 7, 2006 No. 169-III.

This Law is aimed at protecting the rights of depositors – individuals, including individual business entities, and defines the legal basis for the functioning of the mandatory deposit guarantee system placed in second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan), with the exception of interest-free demand deposits and investment deposits placed in Islamic banks (branches of non-resident Islamic banks of the Republic of Kazakhstan), the procedure for establishing and operating an organization that provides mandatory deposit insurance, the participation of second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan) in the mandatory deposit guarantee system, as well as other issues of mutual relations between the participants of the system.

President

Republic of Kazakhstan

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