On Approval of the Regulation on the Licensing of Pawnshop Activities

Resolution of the Board of the Central Bank of the Republic of Uzbekistan, registered on December 10, 2003, registration number 1291

Date of Entry into Force

20.12.2003

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28.09.2022

15.06.2020

03.10.2019

02.04.2019

11.10.2017

11.09.2017

10.06.2016

21.09.2015

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Document lost its force 28.09.2022

[ OKOB: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.23.00.00 Other Credit Institutions / 07.23.02.00 Pawnshops; 2. 09.00.00.00 Entrepreneurship and Economic Activity / 09.01.00.00 Legislation on Entrepreneurship / 09.01.06.00 Licensing of Certain Types of Activity. Permitting (also see 02.08.06.00) / 09.01.06.02 Procedure for Licensing Certain Types of Activity] [ TSZ: 1. Civil Legislation. Entrepreneurship / Licensing of Certain Types of Activity; 2. Finance / Banks and Other Credit Institutions. Credits]

Resolution

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

On Approval of the Regulation on the Licensing of Pawnshop Activities

[Registered by the Ministry of Justice of the Republic of Uzbekistan on December 10, 2003, registration number 1291]

This resolution has lost its force based on the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 19/5 dated August 22, 2022 "On Declaring Certain Regulatory Legal Acts Adopted by the Central Bank of the Republic of Uzbekistan as Lost in Force" (registration number 3389, dated 28.09.2022).

This Regulation establishes the procedure for licensing pawnshop activities in accordance with the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1995, No. 12, Article 247), the Law "On Licensing Certain Types of Activity" (Information Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2000, No. 5-6, Article 142), 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" (Collection of Legislation of the Republic of Uzbekistan, 2003, No. 17-18, Article 149).

I. General Provisions

1. Pawnshop activities are carried out exclusively by specialized legal entities holding a special permit (license) for the implementation of pawnshop activities. The main purpose of their activity is the provision of short-term loans against movable property intended for personal consumption pledged by citizens.

2. Licensing of pawnshop activities is carried out by the Central Bank of the Republic of Uzbekistan (hereinafter referred to as the licensing authority).

3. A license for the implementation of pawnshop activities is issued for an indefinite period.

4. The issuance of a license granting the right to carry out pawnshop activities, suspension of the license's validity, termination, re-issuance, and revocation of the license are formalized by a resolution of the Board of the Central Bank of the Republic of Uzbekistan. (Paragraph 4 in the edition of the Resolution of the Board of the Central Bank of the Republic of Uzbekistan No. 12/2 dated May 25, 2020 (registration number 1291-11, dated 15.06.2020) — National Database of Legislative Acts of the Republic of Uzbekistan, 15.06.2020, No. 10/20/1291-11/0794)

5. The right of a legal entity to carry out pawnshop activities comes into force from the moment the license is issued.

6. Transfer of a license to another legal entity is prohibited.

II. Requirements and Conditions for the License

7. In carrying out its activities, a pawnshop must comply with the requirements of the legislation of the Republic of Uzbekistan.

8. A license for the implementation of pawnshop activities may be issued to a legal entity registered as a pawnshop in the manner established by law, having formed a minimum authorized capital of 500 million soums.

The authorized capital of a pawnshop is formed from funds paid by the founders of the pawnshop.

It is not permitted to use funds from credits and pledged amounts, as well as other attracted funds, to form the authorized capital of a pawnshop. See previous edition. (Paragraph 8-1 lost its force based on the Resolution of the Board of the Central Bank of Uzbekistan No. 22/7 dated September 14, 2019 (registration number 1291-10, dated 03.10.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 03.10.2019, No. 10/19/1291-10/3851)

9. When applying for re-issuance of a license due to obtaining a license or a change in location (postal address), the pawnshop must have a conclusion from the relevant territorial main directorate of the Central Bank regarding the technical strength of the building and its cash rooms, the availability of fire protection and emergency warning signaling equipment, the availability of high-quality communication lines to ensure interaction and information exchange, as well as software for conducting accounting reporting operations. (Paragraph 9 in the edition of the Resolution of the Board of the Central Bank of Uzbekistan No. 22/7 dated September 14, 2019 (registration number 1291-10, dated 03.10.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 03.10.2019, No. 10/19/1291-10/3851)

9-1. Requirements for candidates recommended for the position of head of the management body of a pawnshop:

higher economic education;

must have work experience in the banking and financial sector of not less than two years, as well as an impeccable business reputation.

In this regard, persons who have an unexpunged or unrehabilitated conviction for crimes against the economy or management order are considered not to have an impeccable business reputation. (Paragraph 9-1 in the edition of the Resolution of the Board of the Central Bank of Uzbekistan No. 12/2 dated May 25, 2020 (registration number 1291-11, dated 15.06.2020) — National Database of Legislative Acts of the Republic of Uzbekistan, 15.06.2020, No. 10/20/1291-11/0794)

III. Documents Submitted for Obtaining a License

10. A legal entity — license applicant — submits the following documents to the licensing authority for obtaining a license for the implementation of pawnshop activities:

a) an application for issuing a license for the implementation of pawnshop activities, indicating the name and organizational-legal form of the legal entity, its location (postal address), and bank account details. The application for issuing a license may indicate the applicant's electronic address;

b) a one-year business plan for activities approved by the body of the pawnshop with management authority;

c) a list of founders, indicating the following information:

for individuals:

surname, name, patronymic, passport details, postal address of residence, telephone numbers;

type of activity, place of work, position (if employed);

the amount of the share in the authorized capital of the pawnshop, including as a percentage of the total amount of the authorized capital;

For legal entities:

full name, postal address and telephone numbers, payment details;

the amount of the share in the authorized capital of the pawnshop, including as a percentage of the total amount of the authorized capital.

For all founders (both legal and natural persons), information about all legal penalty measures applied to such person by courts (including economic courts) or state bodies during the five years prior to the submission of the application.

d) information about the structure and personal composition of the management bodies of the pawnshop;

e) information confirming the availability of specially equipped rooms ensuring the storage of cash funds and pledged property;

f) a copy of the payment order confirming the payment of the fee for the consideration of the license application by the licensing authority;

This list of documents is considered complete. It is not permitted to require the license applicant to submit documents not provided for in this Regulation.

11. Documents are delivered by the license applicant directly to the licensing authority or its territorial divisions, or via postal communication or in electronic form, upon receipt of confirmation of their receipt. Documents submitted in electronic form are certified by the electronic digital signature of the license applicant.

If the license applicant's application for obtaining a license indicates an electronic address, they express consent to receive information about the decision made on their application in electronic form through the information system.

12. The license applicant is liable in accordance with the legislation for submitting incorrect or distorted information.

IV. Procedure for Reviewing Documents for Obtaining a License

13. The application with all necessary documents required for obtaining a license is considered by the licensing authority within 15 working days from the day the application and necessary documents are received. (Paragraph 13 in the edition of the Resolution of the Board of the Central Bank of Uzbekistan No. 22/7 dated September 14, 2019 (registration number 1291-10, dated 03.10.2019) — National Database of Legislative Acts of the Republic of Uzbekistan, 03.10.2019, No. 10/19/1291-10/3851)

14. A fee is collected from the license applicant for the consideration of their application by the licensing authority. No fee is collected for re-consideration of the application.

The amount of the fee collected for consideration of the application is transferred to the special account of the licensing authority.

If the license applicant renounces their application during the period of document consideration, the paid fee amount is not refunded.

The licensing authority collects a state duty in the amount established by the Law of the Republic of Uzbekistan "On State Duty" for the issuance of a license. (Fourth sub-paragraph of Paragraph 14 in the edition of the Resolution of the Board of the Central Bank of Uzbekistan No. 12/2 dated May 25, 2020 (registration number 1291-11, dated 15.06.2020) — National Database of Legislative Acts of the Republic of Uzbekistan, 15.06.2020, No. 10/20/1291-11/0794)

The amount of the fee is established by the Cabinet of Ministers of the Republic of Uzbekistan. (Fifth sub-paragraph of Paragraph 14 in the edition of the Resolution of the Board of the Central Bank of Uzbekistan No. 12/2 dated May 25, 2020 (registration number 1291-11, dated 15.06.2020) — National Database of Legislative Acts of the Republic of Uzbekistan, 15.06.2020, No. 10/20/1291-11/0794)

15. The licensing authority must notify the license applicant in writing, as well as via the information system in electronic form, within 3 days from the date of adoption of the decision on issuing the license or refusing to issue the license, about the adopted decision.

16. The notification about the adoption of a decision on issuing a license is sent (handed over) to the license applicant in writing, indicating the bank account details and the deadline for payment of the state duty.

After the licensee submits a document confirming the payment of the state duty and signs the license agreement, a license is issued to them in the form attached.

If the licensee fails to submit a document confirming the payment of the state duty for the issuance of the license to the licensing authority or fails to sign the license agreement within three months from the moment the notification about the adoption of a decision on issuing a license to them was sent (handed over), the licensing authority has the right to revoke this license.

18. The original copy of the license is issued to the licensee, and a copy is stored at the licensing authority in the established manner.

19. The licensing authority has the right to refuse to issue a license for the following reasons:

when documents are submitted without being formalized in the required manner;

when documents contain incorrect or distorted information;

when the license applicant does not meet the license requirements and conditions.

20. The notification of refusal to issue a license is sent (handed over) to the license applicant in writing, indicating the reasons for refusal and the deadline by which the license applicant may eliminate the indicated deficiencies and resubmit the documents for consideration. The deadline indicated in the notification of refusal to issue a license should be proportional to the time necessary to eliminate the deficiencies.

When re-considering the application of the license applicant, it is not permitted to refuse to issue a license based on new grounds not previously indicated in the notification of refusal to issue a license.

The license application of the license applicant submitted after the deadline indicated in the notification of refusal to issue a license is considered as a new submission.

21. Re-consideration of documents by the licensing authority is carried out within a period of 10 days from the day all necessary documents are received from the license applicant.

V. Procedure for Re-issuing a License and Issuing a Duplicate

22. If pawnshops are reorganized, their names or locations change, the licensee or its legal successor must submit an application for re-issuance of the license to the licensing authority within one month after re-registration, attaching relevant documents confirming the indicated information.

Documents are delivered by the license applicant directly to the licensing authority via postal communication or in electronic form, upon receipt of confirmation of their receipt. Documents submitted in electronic form are certified by the electronic digital signature of the license applicant.

23. If a license is lost or becomes unusable, the license owner must apply for a duplicate within 15 days.

VI. Procedure for Suspension, Termination, and Revocation of a License

24. The licensing authority may suspend the validity of a license in the following cases:

when it is established that the licensee has violated the license requirements and conditions provided for in the license agreement;

when decisions of the licensing authority imposing an obligation on the licensee to eliminate identified violations are not fulfilled by the licensee.

A decision on suspending the validity of a license is delivered to the licensee in writing without delay, but not later than three days from the date of adoption of the decision, by the licensing authority that adopted the decision, indicating valid reasons.

A decision of the licensing authority on suspending the validity of a license may be appealed to the court. If the court finds the suspension of the validity of the license unfounded, the licensing authority is liable to the licensee for the amount of damage caused to them.

The licensing authority must set a deadline for the licensee to eliminate the circumstances that led to the suspension of the validity of the license. The specified deadline may not exceed six months.

If the licensee eliminates the circumstances that led to the suspension of the validity of the license, the licensing authority that suspended the validity of the license must adopt a decision on restoring the validity of the license within a period of three days from the day of receipt of the certificate confirming the elimination of the indicated circumstances.

25. The validity of a license is terminated in the following cases:

when the licensee applies with an application to terminate the validity of the license;

when a legal entity is terminated — from the moment of termination, or if its activity is terminated as a result of reorganization — from the moment of reorganization, except when, in reorganized legal entities, a license for the same type of licensed activity is available at the time of state registration of the newly formed legal entity resulting from its modification;

when the license requirements and conditions provided for in the license agreement are systematically or grossly violated once by the licensee;

when the licensee fails to eliminate the circumstances that led to the suspension of the validity of the license within the deadline set by the licensing authority;

when it is established that the decision of the licensing authority on issuing a license is contrary to the law.

The validity of a license may also be terminated based on a court decision.

The validity of the license is terminated from the date of adoption of the decision on termination.

26. Revocation of a license by the licensing authority is carried out in the following cases:

if the license applicant fails to submit a document confirming the payment of the state duty for the issuance of the license to the licensing authority or fails to sign the license agreement within three months from the moment the notification letter about the adoption of a decision on issuing a license was sent (handed over);

when the licensee applies with an application to revoke the license;

when it is established that the license was obtained using forged documents.

A license may also be revoked according to a court decision. The decision on revocation takes effect from the date the license was issued.

26-1. Information on the suspension, restoration, termination, and revocation of the validity of a license must be published in mass media, as well as on the official website of the Central Bank.

VII. Control over Pawnshop Activities

27. In carrying out control over compliance with license requirements and conditions, the licensing authority has the following rights within the scope of its powers:

to obtain and check primary documents of pawnshops regarding accounting reporting and credit operations, request and obtain information related to their practices;

to request clarifications on the obtained information;

to check the activities of pawnshops and apply sanctions to violators;

to send mandatory instructions to pawnshops regarding the elimination of identified violations in their activities.

VIII. Maintenance of the Registry of Licensees

28. The licensing authority maintains a registry of licensees, which must indicate the following:

names and locations (postal addresses) of licensees, main information about licensees (head and chief accountant's name, telephone number, bank account, etc.)

date and number of issuance of licenses;

grounds and dates of re-issuance of licenses, suspension and restoration of their validity;

grounds and dates of termination of the validity of licenses;

grounds and dates of revocation of licenses;

taxpayer identification number;

other information.

29. Information available in the license registries is posted on the website of the licensing authority and is open for review.

IX. Final Provisions

30. Decisions and actions of the licensing authority and its officials may be appealed in the manner established by the legislation of the Republic of Uzbekistan.

Acting Chairman of the Central Bank M.R. JUMAGALDIEV

Tashkent,

September 22, 2003,

No. 23/3

To the Regulation No. 23/3 dated September 22, 2003 "On the Procedure for Licensing Pawnshop Activities"

APPENDIX

License No. ______ for the implementation of pawnshop activities

20___ year "___" _________

Tashkent City