Article 116. Liquidation mass of the Bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

Home / Laws / Article 116. Liquidation mass of the Bank of the Law on Banks and Banking Activities in the Republic Kazakhstan

1. The liquidation mass of a bank is the property of the bank, as well as the property of other persons in the cases provided for by this Law, which may be subject to foreclosure in the procedure of compulsory liquidation of the bank.

The procedure for the formation and inventory of the liquidation mass of the bank is determined by a regulatory legal act of the authorized body.

2. The liquidation mass of the bank does not include:

1) allocated assets that are collateral for bonds issued in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization.

The allocated assets are transferred by the liquidation commission to the management (with the right to sell the allocated assets and foreclose on mortgaged property and other collateral included in the allocated assets) to a representative of the bondholders of a special financial company in accordance with the procedure established by a regulatory legal act of the authorized body.;

2) collateral that is collateral for mortgage bonds in the form of rights (claims) under mortgage loan agreements (including mortgage certificates), as well as government securities of the Republic of Kazakhstan in cases where ownership of these bonds originated with their holders or passed to them through transactions or other grounds provided for by the laws of the Republic of Kazakhstan.

The collateral, which is collateral for mortgage bonds, is transferred by the liquidation commission to a representative of mortgage bondholders in order to satisfy the creditors' claims of the mortgage bond issuer.;

3) a security payment provided to the creditor in accordance with the procedure and on the terms determined by the transaction(s) under the general financial agreement, prior to the date of revocation of the bank's banking license to carry out all types of operations or the initiation of proceedings for the forced liquidation of the bank, whichever of these dates occurred earlier;

4) securities owned by third parties and entrusted to the custodian bank for storage and accounting, as well as pension assets, assets of the social health insurance fund, assets of the special reserve of the organization providing mandatory deposit insurance, assets of investment funds, allocated assets of special financial companies entrusted to the custodian bank for accounting and storage.

Pension assets, assets of the social health insurance fund, transfers allocated for a guaranteed amount of free medical care, assets of the special reserve of an organization that provides mandatory deposit insurance, assets of investment funds, allocated assets of special financial companies entrusted to the custodian bank for storage and accounting, are transferred to another bank at the request of the social health insurance fund, voluntary an accumulative pension fund, an organization that provides mandatory deposit guarantees, a joint-stock investment fund, a special financial company, or a mutual fund management company.

3. The liquidation estate of a bank with a universal banking license that carries out Islamic banking operations does not include property acquired with money raised under an investment deposit agreement. The specified property, as well as obligations on investment deposits, are subject to transfer by the liquidation commission to another bank with a universal banking license, which carries out Islamic banking operations, to an Islamic bank.

The procedure for selecting a bank with a universal banking license that performs Islamic banking operations, an Islamic bank, and transferring to it property acquired with money raised under an investment deposit agreement and obligations under investment deposits of a liquidated bank with a universal banking license that performs Islamic banking operations, an Islamic bank is established by a regulatory legal act of the authorized body.

The Law of the Republic of Kazakhstan dated January 16, 2026 No. 258-VIII SAM.

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Republic of Kazakhstan

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