Article 6. Guarantees of the organization providing mandatory deposit guarantee The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

Home / RLA / Article 6. Guarantees of the organization providing mandatory deposit guarantee The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

1. An organization providing mandatory deposit guarantees undertakes obligations to pay a guarantee refund to depositors of the participating bank from the date of revocation of the participating bank's license to conduct all banking operations.

2. The obligations of an organization providing mandatory deposit guarantees to pay a guarantee refund to depositors are subject to termination after one year from the date of commencement of payment of the guarantee refund and (or) after the transfer of unclaimed amounts of the guarantee refund to the unified accumulative pension fund in accordance with the procedure provided for in paragraphs 1 and 2 of Article 21-1 of this Law, except for the case provided for in paragraph 4 Articles 21-1 of this Law.

In the event of cancellation of the decision of the authorized body to revoke the participant bank's license to conduct all banking operations, the obligations of the organization providing mandatory deposit insurance to pay a guarantee refund to depositors of such a bank shall cease.

At the same time, the obligations of the participating bank to depositors are reduced by the amount of the guarantee refund paid by the organization providing mandatory deposit guarantees.

The obligations of the participating bank to depositors for which the guarantee compensation has not been paid due to the cancellation of the decision of the authorized body to revoke the license of the participating bank to conduct all banking operations, shall be maintained taking into account the results of offsetting the amount of the guaranteed deposit and the amount of counterclaims conducted in accordance with paragraph 3 of 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.

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Republic of Kazakhstan

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