Article 6. Reorganization and liquidation of a special financial company of the Law on Project Financing and Securitization

Home / Laws / Article 6. Reorganization and liquidation of a special financial company of the Law on Project Financing and Securitization

1. A decision on voluntary reorganization or voluntary liquidation of a special financial company may be made by its participant(s) or shareholder(s) only after the special financial company fulfills all obligations secured by the allocated assets.

2. An application to the bankruptcy court of a special financial company may be filed in cases established by the laws of the Republic of Kazakhstan.:

1) a special financial company;

2) the holder(s) of the bonds of a special financial company;

3) a representative of the bondholders of a special financial company;

4) by other persons in accordance with the laws of the Republic of Kazakhstan.

3. In case of bankruptcy of a special financial company, the allocated assets are transferred by the bankrupt managers 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 the special financial company to satisfy the creditors of the special financial company.

The procedure for transfer of allocated assets to management by bankrupt managers (with the right to sell allocated assets and foreclose on mortgaged property and other collateral included in the allocated assets) to a representative of bondholders of a special financial company is determined by a regulatory legal act of the authorized body.

4. In the event of bankruptcy of a special financial company, a representative of the bondholders of the special financial company, using the money included in the allocated assets and (or) received from the sale of the allocated assets, in addition to meeting the requirements of the bondholders of the special financial company, pays:

state duties and expenses related to foreclosure on mortgaged property and other collateral included in the allocated assets;

services provided to a special financial company for project financing and securitization transactions:

by the Central Depository;

the stock exchange;

a representative of bondholders of a special financial company;

by a custodian bank;

managing the investment portfolio of a special financial company;

a person who collects payments from debtors for claims assigned to a special financial company.

The procedure and order of satisfaction of the claims of bondholders of a special financial company in bankruptcy are determined by:

a bond issue prospectus or a private memorandum of a special financial company;

the bond program prospectus and the bond issue prospectus (private memorandum) within the bond program of a special financial company – in the case of a bond issue within the bond program.

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.

President

Republic of Kazakhstan

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