Article 6-2. Management of allocated assets of the Project Financing and Securitization Act

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1. An investment portfolio manager invests on the basis of an investment portfolio management agreement.

The investment portfolio management agreement is concluded on the terms and in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

2. In addition to the conditions stipulated by the legislation of the Republic of Kazakhstan on the securities market, the investment portfolio management agreement must contain:

1) the conditions, procedure and terms of receipt of money for the rights of claim included in the allocated assets, and the procedure for monitoring their execution;

2) the procedure for interaction of the investment portfolio manager with participants in project financing and securitization transactions, including the conclusion of agreements on the creation of additional collateral;

3) the procedure for disclosure of information to creditors or their representative and authorized body;

4) a list of financial instruments authorized for acquisition at the expense of allocated assets in accordance with the list established by the authorized body.

3. The investment portfolio management agreement may be terminated, along with the general grounds for termination of obligations under the agreement, in one of the following cases:

1) at the initiative of one of the parties to the agreement;

2) upon termination of the license of the investment portfolio manager issued by the authorized body.

The initiator of the termination of the investment portfolio management agreement is obliged to notify the party to the agreement in writing thirty calendar days before the termination date.

In case of suspension or revocation of the investment portfolio manager's license, the investment portfolio manager must notify the special financial company in writing within three calendar days.

The investment portfolio management agreement is considered terminated after completion of the reconciliation procedure for transferring allocated assets of a special financial company to a new investment portfolio manager in accordance with the procedure established by the authorized body.

4. The investment portfolio manager is responsible for his obligations to a special financial company with all his property.

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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