Article 16. The specifics of the simultaneous transfer of part of the obligations under guaranteed deposits and the property of the forcibly liquidated bank of the Law on Mandatory Guarantee of Deposits Placed in Second-tier Banks of the Republic of Kazakhstan

     1. In order to protect the interests of depositors, it is allowed to conduct an operation for the simultaneous transfer of assets and liabilities of an insolvent participating bank or a participating bank that has been deprived of a license to conduct all banking operations to another bank (other banks), the procedure for which is determined by the banking legislation of the Republic of Kazakhstan.

     2. Excluded by the Law of the Republic of Kazakhstan dated 07/02/2018 No. 168-VI (effective from 01.01.2019).  

   3. In the event that the amount of obligations under guaranteed deposits transferred in accordance with paragraph 1 of this article to another bank (other banks) exceeds the amount of property of an insolvent participating bank or a participating bank that has been deprived of a license to conduct all banking operations, the organization providing mandatory deposit insurance is obliged to make up the difference at the expense of special reserves, and in case of their insufficiency – own assets used in accordance with the procedure provided for in paragraph 4 of Article 22 of this Law.

      4. The amount of funds transferred by an organization providing mandatory deposit guarantees in accordance with paragraph 3 of this article shall not exceed the amount to be paid as a guarantee compensation, determined in accordance with Article 18 of this Law.  

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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