Article 740. Restrictions on the disposal of money held in a bank of the Civil Code of the Republic of Kazakhstan

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Article 740. Restrictions on the disposal of money held in a bank of the Civil Code of the Republic of Kazakhstan

1. The money of citizens and legal entities held in bank accounts may be seized only by courts on the grounds of judicial acts and by bailiffs on the grounds of orders of bailiffs authorised by the prosecutor, or resolutions of the territorial justice authorities, created within the state automated information system of enforcement proceedings under the procedure and on the grounds established by the criminal procedural and civil procedural legislation of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of bailiffs.

Whether temporal limitation on disposal of the property or limitation on performing transfers and other property transactions shall be established for the money at the bank accounts of the client by the person, executing prejudicial investigation on the basis and according to procedure stipulated by the legislation of the Republic of Kazakhstan.

Establishment on temporal limitation on the property disposal, limitations on transfers and other property transactions, seizure shall not be allowed:

1) for money at bank accounts and (or) electronic money at electronic money wallets intended for crediting benefits and social payments paid from the state budget and (or) the State Fund of social insurance;

1-1) on money located in bank accounts intended for the transfer of compensation for material damage and the provision of necessary assistance from the state budget and (or) from charitable organizations to individuals who suffered as a result of a natural or man-made emergency;

2) for money held in bank accounts earmarked for housing payments, lump-sum pension payments from the unified pension fund for the purpose of improving housing conditions and/or paying for medical treatment, targeted assets, payments of targeted savings from the unified pension fund for the purpose of improving housing conditions and/or paying for education, payments of savings from an educational savings deposit or insurance payments under an educational savings insurance contract for the purpose of improving housing conditions;

2-1) on money located in bank accounts in housing construction savings banks in the form of housing construction savings accumulated through the use of housing payments, one-time pension payments from a unified accumulative pension fund to improve housing conditions and (or) paying for treatment, in the form of payments of targeted savings from a unified accumulative pension fund to improve housing conditions and (or) paying for education, in the form of payments of savings from an educational savings deposit or insurance payments under an educational savings insurance contract for improving housing conditions;

2-2) for money in bank accounts with second-tier banks in the form of savings for overhaul of the common property of condominium object, except for penalties based on court decisions in cases of failure to fulfill obligations under contracts concluded for the purpose of overhauling the common property of condominium object;

2-3) for money held in a bank account in a housing construction savings bank with the status of a national development institute, intended for crediting payments and subsidies in order to pay for rented housing in a private housing fund;

2-4) on money located in bank accounts in housing construction savings banks in the form of housing construction savings, which are the subject of collateral for issued bank loans;

3) for money deposited on a notary deposit;

4) for money at bank account under the agreement on educational savings deposit, concluded in accordance with the Law of the Republic of Kazakhstan "On the State Educational Savings System";

5) for the assets of the social health insurance fund and transfers allocated for the guaranteed volume of free medical care held in bank accounts;

5-1) for money held in bank accounts intended to account the money of the clients of the investment portfolio manager, for the outstanding obligations of this investment portfolio manager;

5-2) for money held in bank accounts intended to account the money of clients of a person performing the functions of a nominee holder, for the outstanding obligations of this person performing the functions of a nominee holder;

5-3) for money held in bank accounts for clearing transactions with financial instruments;

6) for money of banks, insurance (reinsurance) organizations, voluntary accumulative pension funds, branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, deprived of a license by the authorized state body and (or) in the process of compulsory liquidation (forced termination activity);

7) for funds held in bank accounts designated for the payment of compensation for investment costs, as required by the laws of the Republic of Kazakhstan on public-private partnerships;

8) for money at the current account of a private enforcement agent intended for the storage of recovered amounts in favor of claimants;

8-1) for the money held in the current account of the financial manager for crediting money in the bankruptcy procedure in accordance with the Law of the Republic of Kazakhstan "On restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan";

8-2) for money held in the bank accounts of a citizen against whom a case on the application of the procedure has been initiated or a procedure has been applied in accordance with the Law of the Republic of Kazakhstan "On restoration of solvency and bankruptcy of citizens of the Republic of Kazakhstan";

9) for money at the bank account of a single operator in the field of public procurement, intended to be deposited by potential suppliers or suppliers of money as security measures in the framework of participation in public procurement in accordance with the Law of the Republic of Kazakhstan "On Public Procurement".

10) on money held in bank accounts meant for crediting material assistance granted under sub-paragraph 1) of paragraph 4 of Article 112 of the Social Code of the Republic of Kazakhstan.

The provision of subparagraph 7) of paragraph three of this paragraph shall not apply to the restrictions imposed by the state revenue bodies, as well as courts on the basis of judicial acts and bailiffs on the basis of decisions of bailiffs authorized by the prosecutor, on which there are requirements relating to the first, second and third order in accordance with the order provided for in paragraph 2 of Article 742 of this Code.

The provision of subparagraph 8) of part three of this paragraph shall not apply to restrictions imposed by the authorized body in the field of provision execution of enforcement documents, its territorial bodies, to suspend debit transactions on a current account intended for storing recovered amounts in favor of collectors, a private enforcement agent whose license has been suspended or terminated or whose license has been revoked.

2. Terms of arrest on the money at the bank of legal entities and citizens shall not exceed the terms established for conduct of corresponding cases by criminal procedure and civil procedure legislation of the Republic of Kazakhstan.

3. Acts on client's money arrest at bank accounts may be appealed in the court according to the procedure established by the Laws of the Republic of Kazakhstan.

4. Suspension of debit operations on client's bank accounts shall be performed in the order and cases established by the legislative acts of the Republic of Kazakhstan.

5. Excluded by Law of the Republic of Kazakhstan dated February 27, 2017 №49-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

6. Acts on arrest, resolution and (or) order of authorized state bodies or officials on suspension of deposit operations on client's bank accounts presented to the client's bank account shall be performed in accordance with the date and time of receipt.

Withdrawal of money at client's bank account in case of the lack of money and (or) on limitations of money disposal at bank account shall be provided in accordance with paragraph 8 of this article and in accordance with the order established by paragraph 2 article 742 of this Code.

7. Excluded by Law of the Republic of Kazakhstan dated February 27, 2017 No 49-VI (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

8. Limitations on money disposal at the bank shall not be applied for the withdrawal of money under the requirements of one order and (or) upper order in accordance with the order provided by paragraph 2 article 742 of this Code.

The Civil Code of the Republic of Kazakhstan (Special part) dated July 1, 1999

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