Regulation on Providing a Loan to the Deposit Insurance Agency of the Kyrgyz Republic

		Appendix to Resolution of the Board of the National Bank of the Kyrgyz Republic dated August 15, 2018 No. 2018-P-09/33-1-(NPA)

REGULATION on providing a loan to the Deposit Insurance Agency of the Kyrgyz Republic

1. General Provisions

1. This Regulation "On Providing a Loan to the Deposit Insurance Agency of the Kyrgyz Republic" (hereinafter - the Regulation) defines the general conditions and procedure for providing a loan by the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) to the Deposit Insurance Agency of the Kyrgyz Republic (hereinafter - the Agency).

2. A loan to the Agency is provided in accordance with Article 18 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activity" and this Regulation.

3. The loan is provided to ensure the financial stability of the deposit insurance system of the Kyrgyz Republic, protect the interests of depositors, prevent systemic risk, and ensure the stability of the banking system.

4. The loan is provided in the national currency in compliance with the general principles of lending: term, cost, repayability, and security.

5. The decision to provide a loan, the terms of provision, as well as the terms and volume of the loan are adopted by the Board of the National Bank.

6. The obligation to repay the loan is secured by collateral or another type of security. Requirements for the volume of sufficiency (in percentage terms) of security are established by the Board of the National Bank.

2. Procedure for Providing and Repaying the Loan

7. To obtain a loan, the Agency is obliged to provide the following documents to the National Bank:

• an application-petition for the provision of a loan indicating the purpose of obtaining the loan;
• a decision of the Board of Directors of the Agency on obtaining a loan and providing security for the requested loan;
• a decision of the Executive Director of the Agency on obtaining a loan and providing security for the requested loan.

The National Bank has the right to request other documents necessary for considering the issue of providing a loan to the Agency.

8. The loan is issued, according to the concluded Loan Agreement for the issuance of a loan (Appendix 1), for a term determined by the Board of the National Bank. The loan repayment date may be extended by decision of the Board of the National Bank.

9. Repayment of the principal amount of the loan and accrued interest on it is carried out on the terms defined in the Loan Agreement.

10. In the event of non-target use of funds provided by the National Bank and/or provision of unreliable information regarding security, as well as regarding the use of provided funds, the National Bank has the right to demand early repayment of the provided funds.

11. The National Bank, in the event of the Agency's failure to fulfill its obligations to repay the loan issued to the Agency in accordance with this Regulation, may satisfy its claims through out-of-court seizure of the collateral subject or through other security provided by the Agency.

3. Loan Security

12. The subject of collateral provided as security for the loan cannot be pledged or re-pledged to a third party.

13. Collateral as security for the loan may include state securities of the Government of the Kyrgyz Republic, National Bank notes, and other types of collateral acceptable to the National Bank. Security for the loan may also be a guarantee of the Government of the Kyrgyz Republic.

4. Calculation of Interest on the Loan

14. The interest rate on the loan is established by the Board of the National Bank. Interest on the loan amount is accrued according to the simple interest formula for the period of actual use of the issued loan, based on 360 calendar days in a year, using the following formula:

P = (C x I x T)/360/100, where:

P - amount of interest on the loan;

C - loan amount (som);

I - interest rate;

T - term of the provided loan (in days).

15. In the calculation of the actual number of calendar days during which the Agency used the issued loan, weekends and holidays established by legislation or declared by the Government of the Kyrgyz Republic are included.

5. Special Conditions

16. During the period of the loan's action, the Agency is obliged to comply with all requirements defined in the Loan Agreement (Appendix 1) and the Pledge Agreement (Appendix 2 to the Loan Agreement) as well as decisions of the National Bank related to the provision of the loan.

17. At the request of the National Bank, the Agency provides a report on the use of funds and other necessary documents in the form and timeframes established by the National Bank.

6. Liability and Unlawful Actions

18. The National Bank is not liable for any losses arising from the Agency's failure to partially or fully fulfill the conditions for providing the loan.

19. The provision of a loan by the National Bank cannot be considered as the National Bank assuming obligations towards the Agency or the Agency's obligations to bank depositors in the event of a guarantee case.

20. The Agency bears responsibility for compliance with the target use of the loan and all other loan conditions.

		Appendix 1 to the Regulation "On Providing a Loan to the Deposit Insurance Agency of the Kyrgyz Republic" dated ______ No. ______

Loan Agreement No. ______

		Bishkek "" ______ 20 g.

The National Bank of the Kyrgyz Republic, hereinafter referred to as the "National Bank", represented by , acting on the basis of the Order of the National Bank of the Kyrgyz Republic "" dated "____" ______ _____ year, on the one hand, and ______, hereinafter referred to as the "Agency", represented by ______, acting on the basis of the Regulation on the Deposit Insurance Agency, on the other hand, hereinafter jointly referred to as the "Parties", have concluded this Agreement (hereinafter - the Loan Agreement) on the following:

1. Subject of the Loan Agreement

1.1. The National Bank, based on the Regulation "On Providing a Loan to the Deposit Insurance Agency of the Kyrgyz Republic", approved by the Resolution of the Board of the National Bank dated "___" ______ ______ year No. _______ (hereinafter - the Regulation) and in accordance with this Loan Agreement, provides a loan to the Deposit Insurance Agency of the Kyrgyz Republic (hereinafter - the Agency) in the amount of ______ (amount in words) som on the terms provided for in this Loan Agreement and the Regulation.

1.2. The loan is provided to the Agency exclusively to cover current obligations for compensation payments on deposits ______ (name of the bank) in the event of a guarantee case defined by the Law "On Protection of Bank Deposits (Deposits)", in cases where the Agency's funds are insufficient. The Agency is not entitled to use the loan for other purposes, including covering operational expenses and payments of borrowed amounts.

2. Conditions for Providing the Loan

2.1. The loan is provided for a term of ___, from "" ______ year to "" ______ year.

2.2. The date of providing the loan is the day of transferring the loan funds to the corresponding account of the Agency at the National Bank.

2.3. The National Bank transfers the loan funds no later than the next working day after signing this Loan Agreement and the Pledge Agreement (Appendix 2 to this Loan Agreement).

2.4. The interest rate for the use of the loan is established at the amount of ______ (in words) percent per annum, for the entire term specified in paragraph 2.1 of this Loan Agreement. Accrual and payment of interest for the use of the loan are made by the Agency monthly, according to the established repayment schedule (Appendix 1 to this Loan Agreement), which is an integral part of this loan agreement. Interest calculation will be carried out in accordance with paragraph 2.6 of this Loan Agreement.

2.5. Interest is accrued from the day following the date of providing the loan to the date of repayment of the loan (including this date) on the actual outstanding loan balance, calculated based on 360 days in a year and the actual number of days of loan use in the month.

2.6. Calculation of interest on the loan amount is carried out according to the simple interest formula for the period of actual use of the loan, based on 360 days in a year and the actual number of days in the month, using the following formula:

P = (C x I x T)/360/100, where:

P - amount of interest on the loan;

C - loan amount (som);

I - interest rate;

T - term of loan use.

2.7. The Parties guarantee the fulfillment of all requirements of the Regulation and this Loan Agreement.

3. Conditions for Repaying the Loan

3.1. Repayment of the principal loan amount and accrued interest for the use of the loan is carried out in accordance with this Loan Agreement and the debt repayment schedule (Appendix 1 to this Loan Agreement), which is an integral part of this Loan Agreement.

3.2. On the repayment date, the principal amount of the loan and/or accrued interest on the loan must be repaid in full; partial repayment is not allowed.

3.3. In the event that the repayment date of the principal amount of the loan and/or payment of accrued interest falls on a holiday, non-working, or weekend day, then the repayment of the principal amount of the loan and/or accrued interest on it is carried out on the next working day.

3.4. Payments for the repayment of the principal amount of the loan and/or accrued interest on it are transferred by the Agency to the corresponding account at the National Bank (principal amounts to account No. ______, interest payment amounts to account No. ______).

3.5. The Agency has the right to make early partial or full repayment of the principal debt and interest, provided for by the Regulation and Loan Agreement, with prior notification to the National Bank no later than 3 (three) working days before the planned repayment date.

4. Loan Security

4.1. Security for the fulfillment of the Agency's obligations to repay the principal amount of the loan obtained by the Agency under this Loan Agreement, accrued interest on it, and other payments under this Loan Agreement is ______

4.2. The conditions and procedure for providing security transferred by the Agency as collateral to the National Bank to secure its obligations under this Loan Agreement will be specified in the corresponding Pledge/Security Agreement.

5. Rights and Responsibilities of the Parties

5.1. The Agency bears full responsibility for its obligations under the loan and its target use in accordance with the Regulation and this Loan Agreement.

5.2. The National Bank is not liable for damage caused to the Agency due to the Agency's violation of the Regulation and this Loan Agreement.

5.3. At the request of the National Bank, the Agency provides a report on the use of the loan and other necessary documents in the form and timeframes established by the National Bank.

6. Special Conditions

6.1. In the event of force majeure circumstances (force majeure), caused directly or indirectly by manifestations of emergency circumstances, including earthquakes and other natural disasters, actions and decisions of state bodies, military actions, and mass riots, which are beyond the control of the Parties to this Loan Agreement and prevent them from fulfilling their obligations under this Loan Agreement, the terms for fulfilling these obligations are proportionally postponed for the duration of such force majeure circumstances, but only to the extent that they significantly affect the timely fulfillment of the entire this Loan Agreement or that part of it which was to be fulfilled after the occurrence of such force majeure circumstances.

6.2. The Parties to this Loan Agreement must immediately, within 2 (two) working days, notify each other orally and in writing about the beginning of force majeure circumstances preventing them from fulfilling their obligations under this Loan Agreement, and their subsequent end.

6.3. Non-fulfillment by one of the Parties of its obligations under this Loan Agreement is not considered a violation of this Loan Agreement if it is a consequence of force majeure circumstances, provided that the Party affected by force majeure circumstances has timely taken all necessary measures to eliminate such consequences and provided the corresponding act of a state body.

7. Dispute Resolution

7.1. Disputes and disagreements arising in the process of fulfilling this Loan Agreement are subject to settlement through negotiations between the Parties with the aim of developing a mutually acceptable solution.

7.2. Unresolved disputes are resolved in the manner established by the legislation of the Kyrgyz Republic and other normative legal acts of the Kyrgyz Republic.

8. Other Conditions

8.1. Other conditions not provided for in this Loan Agreement, the rights, duties, and responsibilities of the Parties are regulated by the Regulation.

8.2. Changes and additions to this Loan Agreement are made by concluding a written supplementary agreement, which is an integral part of it.

8.3. This Loan Agreement is drawn up in 2 (two) original copies in the official language and in 2 (two) original copies in the state language, having equal legal force, 2 (two) copies for each of the Parties.

9. Legal Addresses, Details, and Signatures of the Parties

National Bank:		Agency:
National Bank of the Kyrgyz Republic		Deposit Insurance Agency of the Kyrgyz Republic
Bishkek, Chuy Ave., 168		Bishkek, Moscow St., 190
Position ______		Position ______
(signature)______M.P.		(signature)______M.P.

		Appendix 1 to the Loan Agreement dated "" ______ 20 g. No. _______

SCHEDULE
of loan repayment

Loan Amount: ______ som

Interest Rate: _____%

Interest Repayment: monthly

Calculation Year: 360 days

Loan Term: _____ days

Loan Issue Date: "_" ______ 20 g.

Loan Repayment Date: "___" ______ 20__g.

Months	Repayment Dates	Interest Repayment(*)	Principal Repayment	Total to Repay
	Total

(*) - actual number of days of loan use is used in interest calculation.

National Bank:		Agency:
National Bank of the Kyrgyz Republic		Deposit Insurance Agency of the Kyrgyz Republic
Bishkek, Chuy Ave., 168		Bishkek, Moscow St., 190
Position ______		Position ______
(signature) ______ M.P.		(signature) ______ M.P.

		Appendix 2 to the Loan Agreement dated "" ______ 20 g. No. ______

Pledge Agreement No. ______ to the loan agreement dated "__" ____20 g. No. ______

		Bishkek "" ______ 20 g.

The National Bank of the Kyrgyz Republic, hereinafter referred to as the "National Bank" or "Pledgee", represented by ______, acting on the basis of the Order of the National Bank of the Kyrgyz Republic dated ______ No. ______, on the one hand, and the Deposit Insurance Agency of the Kyrgyz Republic, hereinafter referred to as the "Agency" or "Pledgor", represented by ______, acting on the basis of the Regulation on the Deposit Insurance Agency, on the other hand, hereinafter jointly referred to as the "Parties", have concluded this Pledge Agreement on state securities of the Government of the Kyrgyz Republic/National Bank notes (hereinafter - "Pledge Agreement") on the following:

1. Subject of the Agreement

1.1. The Pledgee provided the Pledgor with a loan in the amount of ______ (amount in words) som. The final repayment term for the loan and accrued interest on it occurs within the timeframes specified in the Loan Agreement for the issuance of a loan dated "__" ______ ____ year No. ______ (hereinafter - the Loan Agreement).

1.2. As security for the fulfillment of the Pledgor's obligations under the Loan Agreement, the Pledgor transfers to the Pledgee as collateral the following state securities of the Government of the Kyrgyz Republic/National Bank notes (hereinafter - securities) with a total nominal value of ______ (amount in words) som, of the following issues and in the following volumes:

No.	Registration Number	Issue Date of Securities/Notes	Maturity Date of Securities/Notes	Quantity of Securities/Notes (pieces)	Nominal Price of 1 Security/Note (som)	Nominal Value of Securities/Notes (som)
	Total:

1.3. This Pledge Agreement serves as security for the fulfillment of the Pledgor's obligations under the Loan Agreement during its term.

1.4. The Pledgor is liable to the Pledgee with the securities pledged, specified in paragraph 1.2 of this Pledge Agreement, for the full volume of its obligations under the Loan Agreement, including the principal amount of the loan and accrued interest on it.

1.5. Ownership rights to the pledged securities transfer to the Pledgee in the event of full or partial non-fulfillment by the Pledgor of its obligations to the Pledgee in the manner established by this Pledge Agreement and the Loan Agreement.

2. Rights and Obligations of the Parties

2.1. The Pledgor guarantees and gives its full consent to the immediate (indisputable), out-of-court seizure of the securities, in accordance with the conditions of this Pledge Agreement and the current legislation of the Kyrgyz Republic, in the event of non-fulfillment or improper fulfillment of obligations assumed under the Loan Agreement and Pledge Agreement.

2.2. The Pledgor undertakes to timely and properly conduct all measures provided for by the current legislation of the Kyrgyz Republic, necessary for the registration and entry into force of this Pledge Agreement.

2.3. The Pledgor undertakes to ensure (with prior written notification to the Pledgee) the replacement of securities, for which the maturity date occurs before the end of the term of the Loan Agreement, with other equivalent securities (state treasury bills, state treasury bonds, and National Bank notes) with a later maturity date. The replacement of securities must be carried out 10 (ten) working days before the maturity date of the securities of the corresponding issue/emissions.

2.4. The Pledgor has the right to receive coupon payments (if any) on the pledged securities.

2.5. Subsequent pledge of securities that are the subject of this Pledge Agreement is not allowed.

2.6. The Pledgee has the right to demand early fulfillment of obligations stipulated in this Pledge Agreement from the Pledgor, and if its demand is not satisfied, to seize the securities in the following cases:

1) in case of violation by the Pledgor of the requirements and provisions of the Loan Agreement;

2) in case of violation by the Pledgor of the rules on subsequent pledge;

3) in case of non-fulfillment by the Pledgor of other requirements and provisions provided for by this Pledge Agreement or the legislation of the Kyrgyz Republic.

2.7. The Pledgee undertakes to return to the Pledgor the difference from the amount exceeding the size of the secured claim of the Pledgee. Claims of the Pledgee, which are satisfied from the value of the securities, include: repayment of the principal amount of the loan and payment of interest for the use of the loan.

3. Conditions of the Pledge

3.1. The Parties agreed that the securities pledged in accordance with this Pledge Agreement will be held in a reserve (pledge) sub-account of the Pledgor's depot account at the Central Securities Depository of the National Bank.

3.2. After signing this Pledge Agreement, the Pledgor undertakes to send an instruction to the Central Securities Depository of the National Bank to transfer the securities pledged in accordance with this Pledge Agreement to the reserve (pledge) sub-account of the Pledgor's depot account at the Central Securities Depository of the National Bank.

3.2. In the event of non-fulfillment by the Pledgor of the requirements specified in paragraph 2.1.3 and other paragraphs of this Pledge Agreement, upon the maturity of the securities pledged in accordance with this Pledge Agreement and held in the reserve (pledge) sub-account of the Pledgor's depot account at the Central Securities Depository of the National Bank, the Parties authorized the Central Securities Depository of the National Bank to transfer the amount of the nominal value of the specified securities from the account of the Central Treasury, including at the Ministry of Finance of the Kyrgyz Republic, to the account of the Pledgee.

3.4. In the event of non-fulfillment of the obligation secured by the pledge, according to the Loan Agreement, the Pledgee has the right to transfer the securities pledged in accordance with this Pledge Agreement from the reserve (pledge) sub-account of the Pledgor's depot account at the Central Securities Depository of the National Bank to the account of the Pledgee.

3.5. The Parties agreed that the fees for registering this Pledge Agreement at the Central Securities Depository of the National Bank are paid by the Pledgor.

4. Procedure for Seizing the Subject Matter of the Pledge

4.1. In the event of the need to seize the securities, in accordance with the provisions of this Pledge Agreement, the Parties have agreed that the seizure of the securities will be carried out immediately, out-of-court, in accordance with the conditions of this Pledge Agreement and the current legislation of the Kyrgyz Republic.

5. Other Conditions

5.1. This Pledge Agreement enters into force from the moment of its registration in the established manner and remains in effect until the Pledgor fully fulfills its obligations to the Pledgee.

5.2. The conditions of this Pledge Agreement may be changed and supplemented only by mutual agreement of the Parties.

5.3. This Pledge Agreement is drawn up in the official (Russian) language in 3 (three) original copies, having equal legal force: 1 (one) copy - for the Pledgor, 1 (one) copy - for storage at the National Bank, 1 (one) copy - for submission to the relevant authorized bodies for pledge registration. All copies have equal legal force.

6. Legal Addresses, Details and Signatures of the Parties

Pledgee:		Pledgor:
National Bank of the Kyrgyz Republic		Deposit Insurance Agency of the Kyrgyz Republic
Bishkek, Chuy Ave., 168		Bishkek, Moskovskaya St., 190
Position ______		Position ______
(signature) ______ M.P.		(signature) ______ M.P.

Registered at the National Bank

"" ______ 20 year No. ______

/
(signature) (position, Full Name)