Article 4-2. The specifics of the activities of a special financial company established to participate in project financing The Law on Project Financing and Securitization

Home / RLA / Article 4-2. The specifics of the activities of a special financial company established to participate in project financing The Law on Project Financing and Securitization

1. A special financial company established to participate in project financing has the right to carry out the following types of activities:

1) conclude loan agreements secured by allocated assets in order to implement a project financing transaction;

2) issue bonds backed by allocated assets;

3) conclude a financing agreement for the assignment of a monetary claim with the contractor under the basic agreement;

4) invest the money included in the allocated assets in order to protect creditors' rights in accordance with the requirements established by the regulatory legal acts of the authorized body;

5) carry out other types of activities in the interests of creditors necessary for the implementation of the project financing transaction, with the exception of the types of activities established by paragraph 2 of this Article.

2. A special financial company established to participate in project financing is not entitled to:

1) act as a founder (participant, shareholder) of other legal entities;

2) establish branches and representative offices;

3) pay dividends to shareholders or distribute net income among the participants of the partnership until the obligations secured by the allocated assets are fulfilled;

4) to carry out the subsequent assignment of the rights of claims without the consent of creditors;

5) carry out activities that are not related to the project financing transaction.

3. The implementation of activities that are not related to the project financing transaction does not entail the emergence of rights and obligations for a special financial company.

The Law of the Republic of Kazakhstan dated February 20, 2006 No. 126.

This Law establishes the legal basis and conditions for project financing and securitization in the Republic of Kazakhstan, defines the specifics of the assignment of claims and the legal regime of property in project financing and securitization, the legal status of a special financial company, as well as the legal basis and conditions for syndicated financing.

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Republic of Kazakhstan

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