Approval of Rules for the Conduct of Activities and Operations by Pawnshops

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on December 10, 2003, registration number 1290

Date of Entry into Force

20.12.2003

All

08.08.2021

03.10.2019

08.05.2018

23.02.2018

20.12.2003

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Document lost its force 08.08.2021

[
OKOB:
1.
07.00.00.00 Legislation on Finance and Credit. Bank Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops]
[
TSZ:
1.
Finance / Banks and other credit institutions. Credits]

Resolution of the Board of the Central Bank of the Republic of Uzbekistan

On Approval of Rules for the Conduct of Activities and Operations by Pawnshops

[Registered by the Ministry of Justice of the Republic of Uzbekistan on December 10, 2003, under number 1290]

This resolution loses its force starting from August 8, 2021, based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 5/10 dated April 2, 2021 "On Approval of the Regulation on Coordination and Regulation of Activities of Microcredit Organizations and Pawnshops" (registration number 3300, dated 07.05.2021).

In accordance with Article 50 of the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 402 dated September 17, 2003 "On Issues of Registration of Pawnshops and Licensing of Their Activities in the Territory of the Republic of Uzbekistan", the Board of the Central Bank of the Republic of Uzbekistan resolves:

1. Approve the Rules for the Conduct of Activities and Operations by Pawnshops in accordance with the Appendix.

2. This resolution enters into force ten days after the day of its state registration by the Ministry of Justice of the Republic of Uzbekistan.

Acting Chairman of the Central Bank M.R. ZHUMAGALDIEV

Tashkent city,

September 22, 2003,

No. 23/4

"APPROVED"

by the Resolution No. 23/4 of the Board of the Central Bank of the Republic of Uzbekistan dated September 22, 2003

Rules for the Conduct of Activities and Operations by Pawnshops

These Rules are developed in accordance with the Civil Code of the Republic of Uzbekistan, the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", and the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 402 dated September 17, 2003 "On Issues of Registration of Pawnshops and Licensing of Their Activities in the Territory of the Republic of Uzbekistan", and establish the procedure for providing short-term loans to citizens and accepting property for storage.

I. General Provisions

1. Pawnshops accept movable property intended for personal consumption as collateral in the form of a pledge and provide citizens with short-term loans (for a period not exceeding three months).

Pawnshops have the right to attract credit funds from commercial banks and debt funds from legal entities and physical persons-founders. In this case, the total volume (balance) of attracted funds must not exceed the amount of the actually formed Charter Fund.

2. Pawnshops have the right to accept movable property intended for personal consumption for storage.

3. A pawnshop has the right to conduct its activities based on a license issued by the Central Bank of the Republic of Uzbekistan granting the right to conduct pawnshop activities.

A pawnshop has the right to conduct operations with precious metals and precious stones based on a registration certificate issued in the manner established by legislation.
(The second paragraph of clause 3 was edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 22/8 dated September 14, 2019 (registration number 1290-3, dated 03.10.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 03.10.2019, No. 10/19/1290-3/3853)

The specifics of operations conducted with items made of precious metals and precious stones are established by legislation.
(The third paragraph of clause 3 was edited by the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 22/8 dated September 14, 2019 (registration number 1290-3, dated 03.10.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 03.10.2019, No. 10/19/1290-3/3853)

4. A pawnshop concludes contracts with citizens upon presentation of a passport or another document confirming identity.

A pawnshop has the right to demand documents confirming ownership of property being pledged or stored, or other evidence, if necessary.

5. The acceptance of property by a pawnshop for pledge or storage, as well as the enforcement against pledged property, is carried out in accordance with the Civil Code and the Law "On Pledge".

Property accepted by a pawnshop may be returned to its owner after all payments due to the pawnshop are covered.

6. The right to receive items from a pawnshop may be transferred to other persons only based on a power of attorney officially оформленная by the owner of the property.

7. A pawnshop has no right to use or dispose of items pledged or stored.

If property pledged or stored for safekeeping is lost, the pawnshop is obliged to return its value to the owner of the property at the price indicated in the pledge receipt or storage receipt, unless the pawnshop proves that the loss occurred as a result of force majeure.

If property pledged or stored for safekeeping is damaged, the pawnshop is obliged to compensate the owner of the property for material damage in an amount not exceeding the value of the property indicated in the pledge receipt or storage receipt, in accordance with the agreement of the parties, unless the pawnshop proves that the damage occurred as a result of force majeure.

8. A pawnshop conducts operations in accordance with these Rules, the Rules on General Conditions for Conducting Operations, and internal rules.

The Rules on General Conditions for Conducting Operations must be approved by the highest management body of the pawnshop based on these Rules and must include the following information and procedures:

• limits on the amounts and terms of loans provided;
• limits on the fee rates for loans provided;
• conditions for charging fees on loans;
• requirements for collateral by the pawnshop;
• rules for accepting property for storage;
• rates and tariffs for services provided;
• rights and obligations of the pawnshop and its clients, and conditions for their liability;
• procedure for issuing a duplicate if the pledgor loses the pledge receipt;
• other conditions, requirements, and restrictions that the highest management body of the pawnshop considers necessary to include in the general conditions for conducting operations.

81. Tariffs and prices for services provided by a pawnshop are established only in the national currency.

82. The general conditions for conducting operations are considered open information and cannot be a subject of commercial secrecy. The Rules on General Conditions for Conducting Operations must be installed in a convenient and visible place for the clients of the pawnshop.

83. The internal rules of a pawnshop must be approved by the highest management body of the pawnshop and must specify:

• the structure of the pawnshop, its tasks, functions, and powers;
• the rights and obligations of the head and chief accountant;
• the powers of officials and employees of the pawnshop to conclude transactions in the name of and at the expense of the pawnshop.

II. Procedure for Formalizing and Providing Loans

11. The provision of a loan based on collateral is carried out on the basis of a loan contract and a pledge contract concluded between the pawnshop and the citizen.

The contract on pledging property at the pawnshop is formalized by issuing a pledge receipt in the form provided in Appendix 1.

12. A pawnshop has no right to accept for pledge property against which enforcement cannot be directed.

13. The amount and number of loans that can be provided to one person, their terms of provision, as well as the volume of payments for the use of loans are determined based on the agreement of the parties.

14. Property pledged to a pawnshop for obtaining a loan is valued based on the agreement of the parties.

15. A pawnshop is obliged to:

• take measures to store the pledged item;
• immediately notify the pledgor if there is a risk of loss or damage to the pledged item;
• immediately return the pledged item if the terms of the loan contract are fulfilled by the pledgor or a third party;
• insure the items accepted for pledge at its own expense for the full amount corresponding to the prices of similar items of the same quality at the time of acceptance, for the benefit of the pledgor;
• provide a certificate confirming the partial or full fulfillment of obligations arising from the loan contract by the pledgor or a third party, upon the request of the pledgor.

16. If the loan amount secured by the pledge of items is not repaid within the specified period, the pawnshop has the right to sell the pledged property in the manner established for the sale of this property after the expiration of a one-month grace period based on the executive inscription of a notary.

After that, even if the amount received from the sale of the pledged property is insufficient to fully satisfy the claims, the claims of the pawnshop against the pledgor (debtor) are canceled.

17. The amount received from the sale of pledged items, unless otherwise provided by the contract, is directed to cover the loan, interest on the loan, penalties, losses resulting from the expiration of the enforcement period, as well as payments for storage and insurance, and expenses for the sale of the pledged property.

18. If the amount received from the sale of the pledged property exceeds the amount of the pawnshop's claims, the difference is paid to the person who pledged the property.

19. The amount of the pawnshop's claims that exceeds the norm and has not been claimed within three years from the date of sale of the pledged property remains at the disposal of the pawnshop.

III. Procedure for Accepting Property for Storage by Pawnshops

20. Pawnshops may accept movable property (items) intended for personal consumption from citizens for storage. The contract for the storage of items at the pawnshop is formalized by issuing a storage receipt with the owner's name written on it in the form provided in Appendix 2.

21. Items submitted to a pawnshop should be valued at the time of acceptance for storage and on-site, in accordance with prices usually established in trade for items of this type and quality, based on the agreement of the parties.

A pawnshop is obliged to insure items accepted for storage at its own expense for the benefit of the client for their full valued amount.

22. If a client submits items for storage that are highly flammable, pose an explosion risk, or are inherently dangerous, and fails to notify the pawnshop of their characteristics at the time of submission, the pawnshop may dispose of or destroy them at any time without compensating the client for losses incurred. The client is liable for damages caused to the pawnshop and third parties as a result of storing these items.

23. In the event that a client refuses to return the item, the pawnshop must store these items for a period of three months. After three months, items that have not been claimed may be sold by the pawnshop in the manner established in clause 16 of these Rules.

From the amount received from the sale of items, payments for storage and other payments due to the pawnshop are covered. The remaining sum is returned by the pawnshop to the owner of the storage receipt upon its presentation.

IV. Liability for Violation of Legislative Requirements by Pawnshops

24. The Central Bank may inspect pawnshop activities in the manner and on the grounds established by legislation. Pawnshops are obliged to provide necessary information and documents for inspection in accordance with the lawful demands of authorized representatives of the Central Bank, ensure their access to inspection objects, and provide practical assistance in the execution of their obligations.

Authorized representatives of the Central Bank are liable for disclosing commercial secrets and other confidential information about pawnshop activities obtained during the inspection process.

25. Pawnshops are liable in accordance with legislation for failure to comply with the requirements of these Rules.

Appendix No. 1 to the Rules for the Conduct of Activities and Operations by Pawnshops

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(Name of the pawnshop)

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(Address of the pawnshop)