Law of the Republic of Uzbekistan On Leasing

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[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)] [ TSZ: 1. Civil Legislation. Entrepreneurship / Property Rights and Other Real Rights; 2. Civil Legislation. Entrepreneurship / Obligation Law. Specific Types of Obligations]

Law of the Republic of Uzbekistan

ON LEASING

See previous edition.

Article 1. Legislation on Leasing [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Legislation on Leasing regulates relations arising during the implementation of leasing and consists of this Law and other legislative acts. [ OKOZ: 1. 19.00.00.00 International Relations. International Law / 19.06.00.00 Law of International Treaties / 19.06.03.00 Application and Interpretation of Treaties]

If an international treaty of the Republic of Uzbekistan establishes rules other than those provided for in the legislation on leasing of the Republic of Uzbekistan, the rules of the international treaty shall apply. (Article 1 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

Article 2. Concept of Leasing See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Leasing is a specific type of financial lease in which one party (the lessor) acquires ownership of property (the leased object) agreed upon in the lease contract from a third party (the seller) at the request of the other party (the lessee) and provides it to the lessee for possession and use for a period of more than twelve months for a fee. In this case, the lease contract must meet at least one of the following requirements:

upon expiration of the lease contract, the leased object becomes the property of the lessee;

the term of the lease contract is more than eighty percent of the service life of the leased object, or the residual value of the leased object after the expiration of the lease contract is less than twenty percent of its initial value;

upon expiration of the lease contract, the lessee has the right to purchase the leased object at a price lower than its market value, in which case the value of the leased object on the day of exercising this right serves as the basis; See previous edition.

the present discounted (accounted) value of lease payments for the term of the lease contract is more than ninety percent of the present value of the leased object at the time of its handover. The present discounted (accounted) value is determined in accordance with the legislation on accounting. (Part one, fifth paragraph of Article 2 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375) (Part one of Article 2 in the edition of the Law of the Republic of Uzbekistan dated December 28, 2007 No. UРQ-138 — UР HBTS, 2007, No. 52, Article 533)

Leasing is implemented under a three-party (seller — lessor — lessee) or two-party (lessor — lessee) lease contract.

When a two-party lease contract is concluded between the lessor and the seller, a purchase and sale contract for the leased object is additionally concluded.

Article 3. Objects of Leasing [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Any non-consumable items used for entrepreneurial activities, including enterprises, property complexes, buildings, structures, equipment, transport vehicles, and other movable and immovable property, may be objects of leasing. See previous edition.

Land plots and other natural objects, as well as property removed from circulation or whose circulation is restricted, may not be objects of leasing.

See: Article 82 of the Civil Code of the Republic of Uzbekistan. (Part two of Article 3 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

Article 4. Subjects of Leasing [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The lessor, lessee, and seller are subjects of leasing.

The person acquiring ownership of the leased object for the purpose of subsequent handover under the lease contract is recognized as the lessor.

The person receiving the leased object under the lease contract for possession and use is recognized as the lessee.

The person from whom the lessor acquires the leased object is recognized as the seller. See previous edition.

If the leased object is acquired at the expense of the lessee's credit (debt), it is not allowed for the lessor's creditor with respect to a specific leased object and the lessee to act as the same person. (Part five of Article 4 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8) See previous edition.

Article 5. Forms of Leasing [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Leasing may be implemented in a direct form with the participation of all three of its subjects, or in a returnable form with the participation of the same person as the lessee and the seller. (In the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

Article 6. Sublease [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

While remaining liable to the lessor under the lease contract, the lessee has the right to temporarily transfer the leased object received under the lease contract to a third party for possession and use with the written consent of the lessor. In this case, the rules of this Law are applied to the sublease contract to the sublessor, sublessee, and seller respectively, as they are applied to the lessor, lessee, and seller.

The term of validity of the sublease contract may not exceed the term of validity of the lease contract.

Article 7. Accounting and Registration of Leased Objects See previous edition. [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The leased object is accounted for on the balance sheet of the lessee.

See: National Standard of Accounting of the Republic of Uzbekistan (No. 6) "Lease Accounting" (registration number 1946, 24.04.2009) (Part one of Article 7 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8) See previous edition. (Part two of Article 7 issued on the basis of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8) See previous edition.

Leased objects that require registration with state bodies are officially registered in the name of the lessor or the lessee in the manner established by legislation. (Part two of Article 7 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

Based on the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 38 dated March 7, 2006 "On Additional Measures to Regulate the Purchase, Use, and Transfer to Other Persons of Motor and Motorcycle Vehicles", the registration of motor and motorcycle vehicles is carried out by the bodies of the State Road Traffic Safety Service of the Ministry of Internal Affairs of the Republic of Uzbekistan. See previous edition.

Article 8. Leasing Activity [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Leasing activity is a type of investment activity consisting of the purchase of a leased object by the lessor from its own funds and/or attracted funds and its provision to the lessee under a lease contract. (In the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

Article 9. Lease Contract See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The lease contract is concluded in written form in the manner established by legislation. (Part one of Article 9 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

The procedure for concluding contracts is provided for in Chapter 27 of the Civil Code of the Republic of Uzbekistan. See previous edition.

The lease contract:

must be notarized at the request of one of the parties to the contract; See previous edition.

must be notarized in cases where the property is considered a leased object and agreements concluded regarding it are required by law to be certified in notarial form, with the exception of lease contracts for the purchase of immovable property and transport vehicles from the primary market. (Part two, third paragraph of Article 9 in the edition of the Law of the Republic of Uzbekistan dated January 14, 2020 No. UРQ-602 — National Database of Legislative Acts, 15.01.2020, 03/20/602/0052)

Notarization of certain agreements related to motor and motorcycle vehicles and immovable property is required in accordance with the Civil Code of the Republic of Uzbekistan (Articles 386, 488, 490, 497, 504, 513, 531, 565, 580). (Part two of Article 9 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

The following are considered essential terms of the lease contract:

description of the leased object (quantity, quality, list, contract value, and other indicators of the leased object) and indication of the total amount of the contract;

obligations of the parties related to the receipt and provision of the leased object;

procedure for handing over the leased object, including the procedure for delivery, installation, and commissioning of the leased object;

terms, amounts, deadlines, and procedure for making lease payments;

obligations of the parties regarding the use of the leased object, its maintenance, storage, and repair;

term of validity of the contract. See previous edition.

indication of the seller and the party responsible for selecting the leased object. (Part three of Article 9 supplemented with the eighth paragraph on the basis of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

By agreement of the parties, the following terms may be included in the lease contract: See previous edition.

procedure and deadlines for purchasing the leased object; (Part four, second paragraph of Article 9 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

amendment and termination of the lease contract;

insurance of the leased object;

force majeure circumstances;

provision of additional services by the lessor, if the leased object cannot be used without such services;

procedure for monitoring compliance with the terms of the lease contract by the subjects of leasing. See previous edition.

Other terms may also be included in the lease contract in accordance with legislation. (Part five of Article 9 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

Article 10. Amendment and Termination of Lease Contract See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Amendment and termination of the lease contract may be carried out by agreement of the parties, unless otherwise provided by legislation and the contract. (Text of Article 10 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

At the request of one of the parties, the contract may be amended or terminated by the court only in the following cases: 1) if the other party seriously breaches the contract; 2) in other cases provided for by the Civil Code, other laws, and the contract (Article 382 of the Civil Code of the Republic of Uzbekistan),

Article 11. Rights and Obligations of the Lessor [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The lessor has the following rights: See previous edition.

monitor the conditions under which the lessee is using the leased object and whether it is being used for its intended purpose in accordance with the terms of the lease contract and the requirements of legislation; (Part one, second paragraph of Article 11 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

select the leased object and its seller with the consent of the lessee; See previous edition.

demand the return of the leased object from the lessee in cases and in the manner provided for by legislation or the lease contract; (Part one, fourth paragraph of Article 11 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375) See previous edition.

demand the termination of the contract with the recovery of damages and acceleration of future lease payments or recovery of the collateral in the manner provided for, if the lessee has allowed a serious breach of its obligations, unless otherwise provided for in the lease contract. (Part one, fifth paragraph of Article 11 in the edition of the Law of the Republic of Uzbekistan dated October 22, 2019 No. UРQ-572 — National Database of Legislative Acts, 23.10.2019, 03/19/572/3943)

If the leased object is not delivered due to the fault of the lessor or does not comply with the terms of the lease contract, the lessor has the right, with the consent of the lessee, to correct and perform the unperformed or insufficiently performed terms of the lease contract itself or offer another leased object to the lessee.

The lessor:

must receive the property under the lease contract and provide it to the lessee for possession and use;

must inform the seller that the property is being acquired by the lessor for lease to a specific person;

must timely and fully perform its obligations assumed towards the lessee regarding the storage, repair, and technical maintenance of the leased object, if such terms are provided for in the contract.

The lessor may have other rights established by legislative acts and perform other obligations.

Article 12. Rights and Obligations of the Lessee [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The lessee has the following rights:

independently determine and select the leased object and the seller;

demand compensation for damages caused by the lessor's failure to perform or insufficient performance of the lease contract;

make claims to the seller regarding the purchase and sale contract of the leased object, including claims regarding its quality and integrity, delivery deadlines, warranty repair, etc.; See previous edition.

demand postponement of lease payments, refusal of the leased object to be delivered, and termination of the lease contract if the leased object is not delivered, not fully delivered, delivery deadlines are missed, or a leased object of insufficient quality is delivered, unless otherwise provided for in the contract;

demand the return of payments made in advance, deducting the value of the profit obtained from the use of the leased object, in the event of early termination of the lease contract. (Part one, fifth and sixth paragraphs of Article 12 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8) See previous edition.

When a third party attaches execution to the leased object, the lessee has the right to terminate the lease contract and acquire ownership of the leased object while simultaneously making a lump-sum payment of the remaining lease payments under the contract, deducting the income the lessor would receive for the remaining period. (Part two of Article 12 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

The lessee:

must accept the leased object and use it properly, storing it in accordance with the contract terms;

must make lease payments on time, and unless otherwise provided for in the lease contract, must carry out current repairs of the leased object at its own expense and incur other expenses related to its storage.

Upon termination of the lease contract, the lessee must return the leased object to the lessor in the condition in which it was received, taking into account normal wear and tear and changes agreed upon by the parties, with the exception of the cases provided for in part two of this article.

The rights and obligations of the lessee regarding the repair and technical maintenance of the leased object may be specified in a separate contract concluded with the seller. See previous edition.

The lessee may have other rights established by legislation and perform other obligations. (Part six of Article 12 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

Article 13. Rights and Obligations of the Seller See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The seller has rights and performs obligations in accordance with legislation and the contract. (Part one of Article 13 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

Unless otherwise provided for in the lease contract or the purchase and sale (supply) contract, the seller's rights and obligations towards the lessee under the purchase and sale contract are the same as its rights and obligations towards the lessor. In this case, the lessee does not have the right to terminate the purchase and sale contract of the leased object or declare it invalid.

Article 14. Features of the Purchase and Sale Contract of the Leased Object [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The purchase and sale contract of the leased object is concluded between the lessor and the seller, under which the lessor acquires ownership of the leased object at the request of the lessee for the purpose of subsequent provision to the lessee.

By the will of the parties, the purchase and sale contract of the leased object may be concluded before or after the lease contract enters into force.

At the time of concluding the purchase and sale contract of the leased object, the lessor must inform the seller in advance of the purpose for which the leased object is being acquired and record this in the purchase and sale contract.

Article 15. Ownership Rights to the Leased Object [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Ownership rights to the leased object belong to the lessor until it is purchased by the lessee. See previous edition.

Unless otherwise provided for in the lease contract, ownership rights to the leased object may pass to the lessee if all lease payments are paid, deducting the income the lessor would receive for the period remaining until the expiration of the lease contract. (Part two of Article 15 in the edition of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

See: Articles 14 and 985 of the Civil Code of the Republic of Uzbekistan. See previous edition. (Part three of Article 15 issued on the basis of Law No. 447-II dated December 13, 2002 of the Republic of Uzbekistan — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8) See previous edition.

If the lessee goes bankrupt, or its property is seized or confiscated, the leased object is separated from the general property of the lessee and must be returned to the lessor, who may dispose of the property at its own discretion. The procedure for compensating the lessor for damages is established by legislation. (Part three of Article 15 in the edition of the Law of the Republic of Uzbekistan dated April 21, 2021 No. UРQ-683 — , 21.04.2021, 03/21/683/0375)

Article 16. Waiver by the Lessor and Lessee of Their Rights for the Benefit of Third Parties [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The lessor may fully or partially waive its rights under the lease contract for the benefit of third parties, having notified the lessee. See previous edition.

The Lessee may, with the consent of the Lessor, waive its rights under the lease agreement in whole or in part for the benefit of third parties. (Paragraph 2 of Article 16, in the edition of the Law of the Republic of Uzbekistan No. 447-II dated December 13, 2002 — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

When ownership of the leased object passes from the Lessor to a third party, the lease agreement concluded with the Lessee remains in force for the new owner.

Article 17. Application of Accelerated Depreciation to the Leased Object See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The Lessor and the Lessee have the right, by mutual agreement and in accordance with legislation, to apply accelerated depreciation to the leased object. (Text of Article 17, in the edition of the Law of the Republic of Uzbekistan No. URQ-683 dated April 21, 2021 — , 21.04.2021, No. 03/21/683/0375)

In accordance with the National Standard of Accounting of the Republic of Uzbekistan (5th National Standard of Financial Reporting) "Fixed Assets" (registration number 1299, January 20, 2004), accelerated depreciation is calculated using the following methods: a) the method of reducing the balance with double the depreciation rate; b) the sum-of-the-years'-digits method (cumulative method).

Article 18. Insurance of the Leased Object [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Insurance of the leased object against any damage that may be caused by risks of destruction, loss, theft, damage, breakdown, and premature wear and tear is carried out based on the agreement of the parties. In the absence of such an agreement, the Lessee is responsible for insuring the leased object.

Article 19. Risks Related to the Leased Object [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

All risks related to the leased object, including the risk of its accidental loss (destruction) or accidental damage, as well as the risks of theft, premature wear and tear, and damage, pass to the Lessee in the manner provided for in the lease agreement. From the moment the risks pass to the Lessee, the Lessee is responsible for any loss or damage to the leased object in any manner for the duration of the lease agreement.

If the time at which the risks pass from the Lessor to the Lessee is not specified in the lease agreement, the risks pass to the Lessee from the moment he receives the leased object.

If the offered leased object does not conform to the lease agreement and this gives the Lessee the right to refuse the leased object, all risks remain with the Lessor until such non-conformity is eliminated or until the Lessee receives the leased object.

The risks of the seller's insolvency or the non-conformity of the leased object to its intended use are borne by the Lessee, except in cases where the Lessor illegally forced the Lessee to choose a specific seller or leased object, or the Lessor chose the seller or leased object.

Article 20. Security for the Lease Agreement [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

As a guarantee for the return of funds spent in connection with the lease agreement, the Lessor may require the Lessee to provide security, including in the form of a pledge, bank guarantee, or guarantee of a third party.

Article 21. Use of the Leased Object as a Pledge See previous edition. [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The Lessor does not have the right to use the leased object as a pledge without the prior consent of the Lessee. (Part 1 of Article 21, in the edition of the Law of the Republic of Uzbekistan No. 447-II dated December 13, 2002 — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8) See previous edition.

In cases provided for in the lease agreement, the Lessee may provide the leased object as security for the performance of other obligations for the part exceeding the value of the object by the remaining amount of lease payments to be paid to the Lessor. (Part 2 of Article 21, in the edition of the Law of the Republic of Uzbekistan No. URQ-572 dated October 22, 2019 — National Database of Legislative Acts, 23.10.2019, No. 03/19/572/3943)

Article 22. Lease Payments See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Lease payments consist of the reimbursement to the Lessor of the value of the leased object by the Lessee, as well as the Lessor's interest income. (Part 1 of Article 22, in the edition of the Law of the Republic of Uzbekistan No. URQ-138 dated December 28, 2007 — UR QHT, 2007, No. 52, Article 533)

Lease payments are distributed over the entire term of the agreement and are paid in installments. The amount and periodicity of lease payments are determined by the lease agreement. See previous edition.

Article 23. Recovery of Monetary Amounts and Attachment to the Leased Object See previous edition.

[ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The procedure for recovering monetary amounts is established by legislation, and the attachment to the leased object is carried out in the manner provided for attachment to pledged property. (Text of Article 23, in the edition of the Law of the Republic of Uzbekistan No. URQ-683 dated April 21, 2021 — , 21.04.2021, No. 03/21/683/0375)

See: Article 47 of the Law of the Republic of Uzbekistan "On Enforcement of Court Decisions and Other Documents of Authorities".

Article 24. Liability of Leasing Subjects [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

The Lessor is liable to the Lessee for failure to deliver, incomplete delivery, delay in delivery, and delivery of goods of inadequate quality, if this is due to his fault (inaction).

The Lessor is not liable to the Lessee for the leased object, except in cases where it is proven that the leased object was chosen by the Lessor and the Lessee suffered damage as a result, or the leased object itself was chosen by the Lessor.

The Lessor and the Lessee act as joint creditors against the Seller regarding the purchase and sale agreement of the leased object. The Seller is liable to them for the performance of obligations arising from the purchase and sale agreement of the leased object (quality, integrity, timely delivery, etc.). In this case, the Seller cannot be simultaneously liable to both the Lessee and the Lessor for the same specific damage related to the leased object. See previous edition. (Paragraph 4 of Article 24 issued on the basis of the Law of the Republic of Uzbekistan No. 447-II dated December 13, 2002 — Bulletin of the Oliy Majlis, 2003, No. 1, Article 8)

The Lessor is not liable for the shortcomings of the leased object noted in the lease agreement.

The loss of the leased object or the loss of its significance for its intended purpose due to the fault of the Lessee does not release the Lessee from liability to the Lessor, unless otherwise provided for in the lease agreement.

Article 25. Resolution of Disputes [ OKOZ: 1. 03.00.00.00 Civil Legislation / 03.11.00.00 Specific Types of Obligations / 03.11.06.00 Property Leasing (Rent). General Issues / 03.11.06.04 Leasing (also see 09.14.17.04)]

Disputes arising in the process of carrying out leasing are resolved in court.

Also, issues related to leasing are reflected in Articles 587 — 599 of the Civil Code of the Republic of Uzbekistan. Familiarization is recommended.

President of the Republic of Uzbekistan I. KARIMOV

Tashkent city,

April 14, 1999, No. 756-I (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1999, No. 5, Article 108; 2003, No. 1, Article 8; Collection of Legislation of the Republic of Uzbekistan, 2007, No. 52, Article 533; 2016, No. 52, Article 598; National Database of Legislative Acts, 23.10.2019, No. 03/19/572/3943; 15.01.2020, No. 03/20/602/0052; , 21.04.2021, No. 03/21/683/0375)