Regulation on the Establishment and Registration of Guarantee Funds in the Kyrgyz Republic

		Annex to the resolution of the Board of the National Bank of the Kyrgyz Republic dated September 9, 2019 No. 2019-P-33/47-2-(NFKU)

REGULATION on the establishment and registration of guarantee funds in the Kyrgyz Republic

This Regulation on the establishment and registration of guarantee funds (hereinafter - the Regulation) determines the procedure for the establishment and accounting registration of guarantee funds (hereinafter - GF), and also establishes requirements for participants, officials of the GF and the procedure for their approval, the establishment of branches and representative offices, when introducing amendments and additions to the charter, during their reorganization and liquidation.

Chapter 1. General provisions

1. A guarantee fund is a legal entity established in the form of a joint-stock company, which has undergone the procedure of accounting registration with the National Bank of the Kyrgyz Republic (hereinafter - the National Bank) and carries out activities for the purpose of increasing access to financing by providing guarantees for business entities, directed by them to business development, expansion of production, acquisition and modernization of fixed assets, introduction of new enterprises. At the same time, financing means the provision of loans and their substitutes, as well as transactions/operations carried out in accordance with Islamic principles of financing.

2. The GF acquires the status of a legal entity from the day of state registration with the authorized state body carrying out registration of legal entities.

3. The GF has the right to carry out activities for the provision of guarantees for the obligations of business entities if it has a certificate of accounting registration of the National Bank, as well as other types of activities not prohibited by the legislation of the Kyrgyz Republic.

4. The charter of the GF must contain information on the list of services/transactions provided, the main region of activity, the aggregate maximum amount of a guarantee issued to the same person or group of related persons, the maximum amount of a guarantee as a percentage of the amount of financing in accordance with the regulatory legal acts of the National Bank, as well as other issues established by the civil legislation of the Kyrgyz Republic.

5. The minimum amount of the charter capital of the GF must be at least 300,000,000 (three hundred million) soms.

6. The charter capital of the GF is formed only in the national currency of the Kyrgyz Republic at the expense of the monetary funds of the participants in accordance with the requirements of the Law of the Kyrgyz Republic "On Guarantee Funds in the Kyrgyz Republic".

7. Documents submitted by the GF in accordance with the requirements of this Regulation shall be submitted in the state or official languages of the Kyrgyz Republic:

• to the central office of the National Bank - GFs located in Bishkek and Chui region;

• to the regional departments of the National Bank - GFs located in the regions of the Kyrgyz Republic, except for Chui and Batken regions;

• to the representative office of the National Bank in Batken region - GFs located in Batken region.

8. Each copy of the constituent document (decision) or other document of the GF submitted to the National Bank in accordance with this Regulation, containing more than one sheet, must be separately stitched, numbered and signed by the head of the GF or another authorized person and certified by the seal of the GF. At the same time, the other authorized person must also provide a copy of the relevant document on his/her authority to sign and submit such documents to the National Bank.

9. In the constituent documents, the signatures of participants - individuals must be notarized, the signatures of authorized persons who are representatives of a participant - legal entity must be sealed by the legal entity or notarized.

10. Copies of documents submitted by the GF to the National Bank must be certified in the established procedure.

Documents submitted by foreign participants must be legalized in the procedure established by the legislation of the Kyrgyz Republic, including international treaties that have entered into force in the established legal procedure, to which the Kyrgyz Republic is a party, and translated into the state or official languages of the Kyrgyz Republic (a notarized translation is provided).

11. If the GF submits documents to the National Bank not in full or if they do not comply with the requirements established by the legislation of the Kyrgyz Republic and this Regulation, the National Bank, within the period allotted for consideration of the submitted package of documents, has the right to return the documents for revision with a written statement of the reasons.

12. If the GF submits revised documents to the National Bank, or if during the period of consideration by the National Bank of documents additional documents are submitted, the counting of the period for their consideration begins anew, from the date of receipt of documents satisfying the requirements of this Regulation.

13. Decisions on issuing consents for registration/re-registration of the GF, as well as its branches/representative offices, are taken by a member of the Board of the National Bank supervising issues of supervision and licensing of non-bank financial and credit organizations, and when the GF is located in regions other than Chui region - by the head/director of the regional department/representative office of the National Bank.

14. Information on decisions taken by the National Bank within the framework of this Regulation shall be communicated to the applicants of the GF by the National Bank in writing within 3 (three) working days from the day such decision is taken, unless other periods are provided for in this Regulation.

Chapter 2. Requirements for participants of the GF

15. GFs may be established by individuals and legal entities in accordance with the requirements of the Law "On Guarantee Funds in the Kyrgyz Republic".

The participants of the GF may not be:

1) individuals and legal entities residing and/or registered in the territory of offshore zones, or having as participants affiliated persons registered in offshore zones, the list of which is established by the National Bank.

Affiliated persons are recognized as:

• significant participants of a legal entity;

• legal entities in which the same legal entity is a significant participant;

2) individuals and legal entities in respect of which there are international sanctions adopted by the UN Security Council, as well as individuals and legal entities registered in states in respect of which there are international sanctions adopted by the UN Security Council prohibiting legal relations with the specified persons and binding for the Kyrgyz Republic;

3) individuals and legal entities that have not submitted in the established procedure information about their activities, financial condition, composition of participants and any other information and documents allowing them to reliably identify and study the participants of the legal entity, including beneficial owners, or have submitted such information that does not allow reliable identification and study of the participants of the legal entity, including beneficial owners, as well as if they have not confirmed their impeccable business reputation in accordance with the legislation of the Kyrgyz Republic on the National Bank, banks and banking activities;

4) individuals and legal entities that have not confirmed in the procedure established by the National Bank the legality of the source of origin of monetary funds directed to the acquisition of shares of the GF or participation in the capital of the GF;

5) individuals and legal entities in respect of which there are prohibitions or restrictions in accordance with the legislation of the Kyrgyz Republic or the legislation of a foreign state.

Chapter 3. Requirements for officials of the GF and the procedure for their approval

16. Officials of the GF whose candidacies are subject to mandatory approval by the National Bank are the chairman and members of the Board of Directors, the chairman and members of the Management Board, the chief accountant, the head of the guarantee issuance department, the head of the internal audit service (internal auditor), the risk manager.

17. The chairman and members of the Board of Directors must meet the following minimum requirements of the National Bank:

• have a diploma of higher education and work experience (experience) of at least 2 (two) years in the field of economic, banking, financial or legal issues;

• have knowledge in the field of legislation regulating the activities of the GF, corporate governance.

At the same time, the majority of members of the Board of Directors (including the chairman) must have work experience (experience) of at least 1 (one) year in managerial positions in the banking and/or financial system.

Knowledge on corporate governance issues must be confirmed by a certificate or other document on completion of training in this area.

A managerial position means a position not lower than the head of a structural subdivision of a financial and credit organization or an organization in the field of regulation of financial services. At the same time, the work experience does not include work in subdivisions of the above organizations/companies related to the regulation of security issues of this organization/company and the implementation of economic activities.

18. The independence of members of the Board of Directors is determined in accordance with the legislation of the Kyrgyz Republic on joint-stock companies.

19. The chairman of the Management Board and deputy chairmen/members of the Management Board must meet the following minimum requirements of the National Bank:

• have a diploma of higher education;

• have work experience (experience):

a) chairman of the Management Board - at least 3 (three) years of experience in the banking and/or financial system, including in managerial positions - at least 2 (two) years;

b) deputy chairman of the Management Board/members of the Management Board - at least 2 (two) years of experience in the banking and/or financial system;

• possess knowledge in the field of legislation regulating the activities of the GF, corporate governance, risk management.

Knowledge on corporate governance and risk management issues must be confirmed by a certificate or other document on completion of training in this area.

20. A candidate for the position of chief accountant must meet the following minimum requirements of the National Bank:

• have higher education in the field of economics and finance and work experience during the last 3 (three) years in the banking or financial system;

• have knowledge in the field of legislation regulating the activities of the GF, as well as in the field of international accounting and financial reporting standards.

Knowledge in the field of international accounting and financial reporting standards must be confirmed by a certificate or other document on completion of training in this area.

21. Candidates for the positions of heads of structural subdivisions must meet the following minimum requirements of the National Bank:

• have higher education in the field of economics and finance, work experience of at least 2 (two) years in the banking or financial system;

• have knowledge in the field of legislation regulating the activities of the GF.

Candidates for the positions of head of the internal audit service (internal auditor), head of the guarantee issuance department, risk manager, in addition to the above requirements, must:

1) head of the internal audit service (internal auditor) - know the legislation of the Kyrgyz Republic in the field of audit, international standards of audit and financial reporting and have a certificate or other document confirming completion of training in this area.

2) head of the guarantee issuance department, risk manager - have a certificate or other document on banking risk management confirming completion of training in this area.

Certificates and other documents confirming the completion of training of officials in the areas specified in paragraphs 17, 19, 20, 21 of this Regulation must be obtained in educational institutions that have the appropriate permission/license of the authorized state body.

22. For the purposes of this Regulation, the following types of activities are considered types of financial activity and activity related to banking and/or financial activity:

1) banking activity;

2) microfinance activity (provision of microcredits);

3) activity of investment funds;

4) insurance activity;

5) leasing activity;

6) carrying out mortgage lending activity;

7) carrying out trust management (trust);

8) audit activity.

23. Decisions on approval/refusal of approval of candidates for the positions of chairman and members of the Board of Directors, chairman and members of the Management Board, chief accountant of the GF are taken by a member of the Board supervising issues of supervision and licensing of non-bank financial and credit organizations, and when the GF is located in regions other than Chui region - by the head/director of the regional department/representative office of the National Bank.

Decisions on approval/refusal of approval of candidates for the positions of heads of structural subdivisions of the GF are taken by the head of the structural subdivision responsible for registration of the GF, and when the guarantee fund is located in regions other than Chui region - by the head/director of the regional department/representative office of the National Bank.

24. In case of dismissal of officials (release from the position held) specified in paragraph 16 of this Regulation, the GF is obliged within 5 (five) working days from the day of the decision to notify the National Bank thereof, indicating the reasons for dismissal and attaching a copy of the relevant decision of the authorized management body of the GF.

The above requirements also apply to persons temporarily released from the performance of their duties for a period of more than 2 (two) months (parental leave (maternity leave), sick leave, temporary performance of other duties, etc.).

25. Within 10 (ten) working days from the day of election/appointment of officials specified in paragraph 16 of this Regulation, as well as in case of changes in the composition of officials of the GF, the GF is obliged to submit to the National Bank at its location a notification of election/appointment or changes with the attachment of the following documents:

1) decision of the authorized management body of the GF on election/appointment (copy certified by the seal of the GF);

2) questionnaire in the established form (Appendix 2);

3) certificate from the internal affairs bodies of the Kyrgyz Republic on the absence of a criminal record;

4) other required documents, according to this chapter, for each official.

Chairmen and members of the Board of Directors, Management Board, re-elected for a new term in the same GF to the same position, do not undergo approval by the National Bank.

26. The submitted documents are considered by the National Bank within 30 (thirty) working days from the day of submission of documents for consideration.

27. When approving candidacies, information obtained during external supervision and inspection checks of the National Bank, as well as checks conducted in respect of candidates by any state body, may be taken into account.

28. The National Bank has the right to refuse the procedure of approval of officials for the positions specified in paragraph 16 of this Regulation if:

1) a guilty verdict has been rendered against the candidates for committing crimes in the economic sphere or for official crimes, including with deprivation of the right to hold certain positions or engage in certain activities;

2) the candidates previously were officials in a bank or other financial and credit organization licensed (regulated) by the National Bank, and there are decisions of the Supervisory Committee of the National Bank, instructions or other acts of the National Bank recognizing them as involved in actions (inaction) as a result of which the license (certificate) of the bank or other financial and credit organization was revoked;

3) the candidates do not meet the requirements of the laws "On Guarantee Funds in the Kyrgyz Republic", "On the National Bank of the Kyrgyz Republic, Banks and Banking Activities" and this Regulation, including in terms of requirements for impeccable business reputation;

4) there is a conclusion, decision or other acts of the National Bank (decision of the Supervisory Committee of the National Bank, instructions, inspection reports, etc.) recognizing that the candidate:

a) is involved in actions (inaction) as a result of which the license (certificate of accounting registration) was revoked from the bank/financial and credit organization or a temporary administration regime was introduced;

b) is involved in actions classified as unsound or unsafe banking practice;

c) committed violations of the legislation of the Kyrgyz Republic and other unlawful actions in the field of financial, economic and/or economic activity;

6) if the person has lost impeccable business reputation in other areas of activity by a court decision;

7) there are materials of inspections of regulatory bodies indicating the occurrence of financial and/or administrative problems in the areas for which the candidate was responsible.

The candidate does not have the right to occupy positions in the GF specified in paragraph 16 of this Regulation if there are facts specified:

• in subparagraph 4"a", 4"b" of paragraph 28 of this Regulation - within 5 (five) years from the day of the decision on the existence of the fact of violation;

• in subparagraph 4"c", subparagraph 7 of paragraph 28 of this Regulation - within 3 (three) years from the moment of detection of the fact of violation;

• in subparagraph 6 of paragraph 27 of this Regulation - within 3 (three) years from the day of entry into force of the relevant decision.

29. In case of refusal of the National Bank to approve the persons specified in paragraph 16 of this Regulation, the specified person is subject to release from the position held within a period of not more than 10 (ten) working days from the day the bank receives a letter from the National Bank on refusal of approval. In the document on the basis of which the candidate is accepted for the position of a member of the Board of Directors, the refusal of approval of the official by the National Bank must be indicated as the ground for termination of powers (relations related to the performance of the functions of a member of the Board of Directors).

Chapter 4. Documents submitted for obtaining the consent of the National Bank for passing state registration

30. To obtain the consent of the National Bank, the GF at its location submits the following documents to the National Bank:

1) petition for issuing consent for passing state registration (Appendix 1);

2) protocol of the general meeting of participants of the GF (in two copies), containing decisions:

• on the establishment of the GF;

• on the election/appointment of officials of the GF (chairman and members of the Board of Directors, chairman and members of the Management Board, chief accountant, head of the guarantee issuance department, head of the internal audit service (internal auditor), risk manager);

3) constituent agreement on the establishment of the GF (if the number of founders is more than one) (in two copies);

4) charter of the GF (in two copies);

5) organizational structure of the GF (management bodies, structural subdivisions, their functional duties, range of issues considered, subordination);

6) questionnaires of officials established in paragraph 16 of this Regulation (Appendix 2), as well as information and documents confirming their compliance with the minimum requirements established by this Regulation and regulatory legal acts of the National Bank;

7) documents containing information and allowing to determine the sources of origin of monetary funds.

Legal entities may submit:

• copies of financial statements, tax declarations or other documents on financial condition, confirmed by authorized bodies of the Kyrgyz Republic;

• copy of the audit report (if any or if this requirement is established by legislation);

• other documents confirming the sources of origin of monetary funds contributed to the charter capital, not prohibited by the legislation of the Kyrgyz Republic, or their copies certified in the established procedure.

Individuals may submit:

• certificates, income declarations, purchase/sale/gift agreements, right to inheritance of the amount, property and others, or their copies certified in the established procedure;

• other documents confirming the sources of origin of monetary funds contributed to the charter capital, not prohibited by the legislation of the Kyrgyz Republic, or their copies certified in the established procedure;

8) copies of passports of participants - individuals.

31. The National Bank has the right to request additional information (documents) confirming the sources of origin of monetary funds contributed to the charter capital of the GF, in addition to the documents listed in subparagraph 7 of paragraph 30 of this Regulation.

32. The National Bank has the right to suspend consideration or withdraw consent for state registration of the GF for the following reasons:

1) if such changes have occurred in the financial or legal position of the applicant that may become grounds for refusal to issue consent for state registration of the GF;

2) if unreliable information was detected, including information about participants and officials of the GF;

3) on other grounds provided for by the legislation of the Kyrgyz Republic and this Regulation.

The National Bank notifies the GF in writing of the suspension or withdrawal of consent for state registration of the GF.

33. The National Bank considers the petition for issuing consent and the attached package of documents of the GF within 30 (thirty) calendar days from the date of their submission to the National Bank, satisfying the requirements established by this Regulation.

34. In case of completeness and compliance of the submitted documents with the established requirements and absence of grounds for refusal, the National Bank issues to the head of the GF a letter of consent for the GF to pass state registration with the attachment of one copy of the documents specified in subparagraphs 2, 3 and 4 of paragraph 30 of this Regulation.

Chapter 5. Procedure for issuing the certificate of accounting registration

35. After state registration/re-registration of the GF, to obtain a certificate of accounting registration (hereinafter - certificate), the GF at its location is obliged to submit the following documents to the National Bank:

1) application for issuing a certificate (Appendix 3);

2) notarized copies of constituent documents of the GF with a mark of state registration/re-registration;

3) copy of the certificate of state registration/re-registration of the GF, certified by the seal of the GF;

4) document confirming, on the day of filing the application, the contribution of monetary funds in the amount of the minimum charter capital, according to paragraph 5 of this Regulation, to an accumulative account opened in a commercial bank of the Kyrgyz Republic (in case of state registration of the GF).

Funds held in the accumulation account may not be used by the participants of the GF for any purposes until the certificate is obtained.

36. The certificate (Appendix 4) is issued within 10 (ten) working days from the date of submission to the National Bank of an application for the issuance of the certificate and the attached package of documents specified in paragraph 35 of these Regulations.

37. The certificate is issued to the head of the GF upon presentation of an identity document or to another authorized person upon presentation of the relevant power of attorney (document on authorization) and an identity document.

38. Information about the certificate is entered into the register of GFs, which is maintained by the National Bank.

39. In case of loss (damage) of the original copy of the certificate, the GF submits to the National Bank at its location an application for the issuance of a duplicate with attached explanations and supporting documents on the loss (damage) (in case of damage - the damaged certificate; in case of loss - an announcement in the mass media about the loss indicating the details of the certificate and a certificate from the lost and found office).

40. The issuance of a duplicate of the registration certificate is carried out within 5 (five) working days from the date of submission to the National Bank of the application and the relevant documents.

In case of discovery of the original copy of the certificate, the GF must, within 3 (three) working days, submit to the National Bank the original copy of the certificate with attached explanations.

Chapter 6. Grounds for refusal to issue a certificate or consent to state registration/re-registration of a GF, branches and representative offices of a GF

41. A GF may be refused the issuance of a certificate or consent to state registration/re-registration of the GF, branches and representative offices of the GF in the following cases:

1) the constituent or other submitted documents do not comply with the requirements established by the legislation of the Kyrgyz Republic and these Regulations;

2) non-compliance of participants (shareholders) and officials subject to approval by the National Bank with the established requirements;

3) non-compliance of the amount of the minimum charter capital with the requirements established by the National Bank;

4) failure to submit in full documents containing information on the sources of origin of funds contributed to the charter capital of the GF.

42. In case of refusal to the applicant in issuing a certificate or consent to state registration/re-registration of the GF, branches and representative offices of the GF, the National Bank provides a reasoned response in writing.

Chapter 7. Procedure for opening branches and representative offices

43. A GF has the right to open branches and representative offices on the territory of the Kyrgyz Republic, operating in accordance with the legislation of the Kyrgyz Republic and on the basis of regulations on branches and representative offices approved by the authorized bodies of the GF.

A branch of a GF is its separate subdivision that is not a legal entity, located outside the location of the GF, carrying out all or part of the operations on the basis of the Regulations approved by the GF, and acting within the powers granted to it by the GF.

The branch has a single charter capital, balance sheet with the GF, as well as a name fully coinciding with the name of the GF, with the addition of the word "branch".

A representative office of a GF is its separate subdivision that is not a legal entity, carrying out the protection and representation of the interests of the GF, concluding transactions and other legal actions on its behalf, except for the issuance of guarantees.

The actions of branches and representative offices of a GF are considered as actions of the GF, and the GF that created them bears full responsibility for the actions of its branches and representative offices.

44. The opening of a branch and representative office of a GF is carried out by decision of the authorized management body of the GF. The charter of the GF must contain information about the branches and representative offices being opened (including their location).

45. The Regulations on a branch and representative office of a GF must contain the following information:

1) name and location of the branch and representative office;

2) name and location of the GF that created the branch and representative office;

3) purpose of activity and powers of the branch and representative office;

4) powers of the head of the branch and representative office;

5) conditions for termination of activity of the branch and representative office.

The Regulations on a branch and representative office are approved by the authorized management body of the GF and signed by the head of the GF.

46. To open a branch/representative office, the GF submits to the National Bank at its location the following documents:

1) petition for consent to open a branch/representative office (Appendix 1);

2) decision of the authorized management body of the GF on opening a branch/representative office and a copy of such decision (certified by the seal of the GF);

3) Regulations on the branch/representative office.

47. The National Bank considers the petition for consent to open a branch/representative office of a GF within 15 (fifteen) calendar days from the date of submission of documents meeting the requirements of these Regulations.

48. Based on the results of the consideration, if the documents comply with the established requirements, the National Bank issues consent to the state registration of the branch/representative office of the GF.

49. After the state registration of the branch/representative office, the GF is obliged, within 10 (ten) calendar days from the date of registration, to submit to the National Bank a letter-notification with the attachment of the following documents:

1) copies of the Regulations on the branch/representative office with a mark of state registration, certified by the seal of the GF;

2) copies of the certificate of state registration of the branch/representative office, certified by the seal of the GF.

50. Upon closing a branch/representative office on the territory of the Kyrgyz Republic, the GF, within 10 (ten) calendar days from the date of termination of activity of the branch/representative office specified in the relevant decision, submits to the National Bank at its location a corresponding letter-notification with the attachment of the following documents certified by the seal of the GF:

• copies of the decision of the authorized management body of the GF on closing the branch/representative office;

• copies of the registration application for registration of termination of activity of the branch/representative office sent to the authorized state body carrying out registration of legal entities.

51. After the state registration of termination of activity of the branch/representative office, the GF, within 10 (ten) calendar days from the date of registration, is obliged to submit to the National Bank at its location a corresponding letter-notification with the attachment of a copy of the document of the authorized state body carrying out registration of legal entities on registration of termination of activity of the branch/representative office.

52. When changing contact telephone numbers or email address, the GF must notify the National Bank within 15 (fifteen) calendar days from the date of such changes.

53. To coordinate with the National Bank the introduced changes or additions (approval in a new edition) to the regulations on the branch/representative office, the GF submits to the National Bank at its location the following documents:

1) petition for consent for state re-registration of the branch/representative office of the GF;

2) decision of the authorized body of the GF;

3) regulations on the branch/representative office.

54. The National Bank, within 10 (ten) working days, considers the documents submitted in accordance with the requirements of these Regulations. If the documents comply with the requirements of these Regulations and there are no grounds for refusal, the National Bank issues to the GF consent for state re-registration of the branch/representative office of the GF.

55. Within 10 (ten) calendar days from the date of state re-registration of the branch/representative office, the GF is obliged to submit to the National Bank the following documents:

1) a copy of the certificate of state re-registration of the branch/representative office of the GF, certified by the seal of the GF;

2) a copy of the regulations on the branch/representative office with a mark of state re-registration of the branch/representative office of the GF, certified by the seal of the GF.

The National Bank enters information about the state re-registration of the branch/representative office into the register.

Chapter 8. Introduction of changes and/or additions to constituent documents and state re-registration of a GF

56. Changes and additions to the constituent documents of a GF are subject to mandatory coordination with the National Bank. To coordinate with the National Bank the introduced changes and/or additions to the charter, the GF provides to the National Bank an application for the introduction of changes and/or additions to the charter with the attachment of the following documents:

1) petition for consent to undergo state re-registration (Appendix 1);

2) minutes of the general meeting of participants of the GF on the introduction of changes and additions to the charter of the GF (in two copies);

3) text of changes and additions introduced to the charter, according to Appendix 5 (in two copies);

4) charter of the GF in a new edition (in two copies);

5) register of shareholders;

6) document from the authorized state body carrying out registration of legal entities and from the authorized state body in the field of intellectual property on the absence of designations identical or confusingly similar to the proposed name of the GF (in case of change of name of the GF);

7) conclusion of the registering body on approval and reservation of the name (in case of change of name of the GF).

Note: The number of paragraphs in paragraph 56 of these Regulations does not correspond to the number of paragraphs in paragraph 56 of the text in the state language.

57. After undergoing the procedure of state re-registration in the authorized state body, the GF, within 10 (ten) calendar days, provides a notification with the attachment of the following documents:

1) copies of the certificate of state re-registration of the GF, certified by the seal of the GF;

2) copies of the charter with a mark of state re-registration, certified by the seal of the GF.

58. The GF notifies the National Bank of other changes in the documents on the basis of which the certificate for carrying out the activity of the GF was issued, and is also obliged to notify the National Bank of changes in telephone numbers, fax, email address within a period not later than 5 (five) working days from the moment of such changes.

Chapter 9. Procedure for obtaining permission to acquire a share of participation in a GF

59. To obtain permission to acquire in aggregate more than 20 (twenty) percent of voting shares of a GF, the following documents must be submitted to the National Bank:

1) for legal entities:

• application for consent to acquire in aggregate more than 20 (twenty) percent of voting shares;

• decision of the authorized body of the legal entity on the acquisition of shares of the GF;

• documents confirming the stable financial condition of the applicant;

• documents confirming the applicant's compliance with the criteria specified in Chapter 2 of these Regulations;

• information on the sources of origin of funds directed to the acquisition of shares of the GF.

2) for individuals:

• application for consent to acquire in aggregate more than 20 (twenty) percent of voting shares;

• documents confirming the stable financial condition of the applicant;

• information on the sources of origin of funds corresponding to the requirements of the legislation of the Kyrgyz Republic.

Stable financial condition of legal entities/individuals means:

• absence of outstanding debt to the state budget and tax bodies of the Kyrgyz Republic as of the date of application;

• absence of outstanding and overdue obligations to individuals and legal entities as of the date of application;

• profitable activity during the last 2 (two) years (for legal entities).

Individuals who have committed violations of legislation regulating the banking or financial sphere, including normative legal acts of the National Bank, in respect of whom the National Bank has adopted a decision recognizing them as involved in actions classified as unsound banking or financial practice, cannot obtain permission from the National Bank to acquire in aggregate more than 20 (twenty) percent of voting shares of a GF.

60. In case of acquisition of shares by the National Bank, the requirements of this chapter do not apply to the National Bank.

61. The National Bank, within 1 (one) month from the date of receipt of the application and documents meeting the requirements established by these Regulations for the acquisition in aggregate of more than 20 (twenty) percent of voting shares of a GF, sends a letter to the GF on consent or refusal of coordination for the acquisition of shares.

62. The National Bank may request additional information necessary for consideration of the application for the acquisition in aggregate of more than 20 (twenty) percent of voting shares of a GF.

63. The National Bank has the right to refuse coordination of the acquisition by an individual or legal entity of a package of shares in aggregate more than 20 (twenty) percent of voting shares of a GF if the acquiring person does not comply with the requirements of Chapter 2 of these Regulations.

64. Permission to acquire a share of participation in a GF is granted by a member of the Board of the National Bank supervising issues of supervision and licensing.

Chapter 10. Reorganization and liquidation

65. A GF may be reorganized (merger, transformation, accession, division, spin-off) by decision of the participants or the body of the legal entity authorized by the constituent documents, or in the manner established by the legislation of the Kyrgyz Republic.

66. A GF may be liquidated by decision of its participants in accordance with the civil legislation of the Kyrgyz Republic.

67. In case of adoption of a decision on liquidation of the GF, not later than the next working day after the adoption of the decision, it is obliged to send to the National Bank a petition for cancellation of the certificate with the attachment of the original copy of the decision on liquidation and information on the presence of obligations of the GF to creditors.

68. Within 1 (one) month from the date of receipt of the decision of the National Bank on revocation of the certificate, the authorized body of the GF must adopt a decision on liquidation.

69. From the moment of adoption by the authorized body of a decision on liquidation or receipt of notification from the National Bank on revocation of the certificate, the GF must cease issuing guarantees provided for by the certificate. Otherwise, the GF and its officials bear responsibility provided for by legislation.

70. In case of failure by the authorized body to adopt a decision on voluntary liquidation after 1 (one) month from the date of receipt of the decision of the National Bank on revocation of the certificate, the National Bank has the right to apply to the court with an application for forced liquidation of the GF.

71. Forced liquidation of an insolvent GF is carried out in accordance with the legislation of the Kyrgyz Republic "On Bankruptcy (Insolvency)".

Chapter 11. Procedure for appealing decisions of the National Bank

72. Decisions taken by the National Bank within the framework of these Regulations may be appealed by applicants or other interested persons in respect of whom decisions have been taken or whose interests are affected by the decisions taken, in accordance with the banking legislation of the Kyrgyz Republic, including with mandatory observance of the pre-trial appeal procedure.

		Appendix 1 to the Regulations on the creation and registration of guarantee funds

PETITION on the issuance of consent for registration/re-registration/opening of a branch (representative office)/re-registration of a branch (representative office) of a GF

I request consent for undergoing state registration/re-registration/opening of a branch (representative office)/re-registration of a branch (representative office) of a guarantee fund for carrying out activities in accordance with the requirements of the Law "On Guarantee Funds in the Kyrgyz Republic" and normative legal acts of the National Bank of the Kyrgyz Republic
______ (full name and legal address)
Information about founders: ______ ______
List of senior officials:
______ ______ ______
Chairman of the Board
"_" ______ 20

		Appendix 2 to the Regulations on the creation and registration of guarantee funds

QUESTIONNAIRE

		(place for photo)

No.
1	Full name
2	Position
3	Name of GF
4	Date and place of birth	Date:		Place:	country:
city:
5	Passport	Series:	Issued by:	Date of issue:	Valid until:
6	Citizenship
7	Home address according to passport	Place:		country:	Home telephone number:
city:
postal address:
8	Address of actual residence	Place:		country:	Home telephone number:
city:
postal address:
	Work, mobile telephone number with city code, operator
9	Email address
10	Marital status

11. Information on knowledge in the field of:

- legislation regulating the activity of guarantee funds, banking legislation	t	yes/no
- accounting and preparation/maintenance of financial statements	t	yes/no
- corporate governance	t	yes/no
- risk management	t	yes/no
- legislation on auditing activity and international standards on auditing	t	yes/no

12. Education (higher, incomplete higher, secondary specialized, secondary) (underline as appropriate)/

Name of educational institution (city, country)	Faculty or department	Year of admission/graduation	Specialty according to the received diploma

13. Training in courses

Topic of seminar or courses	Organizer of seminar	Place of completion (city, country)	Date of completion (year)	Availability of certificate (courses on IFRS and audit) (yes, no)

14. Work performed since the beginning of employment:

Total work experience ______, including in the financial or banking sphere

Date of employment (year, month)	Date of departure (year, month)	Position held	Name of organization, location (city, country)	Reason for departure

15. Additional information

Is there a court decision prohibiting you from engaging in this type of activity?
Yes ______ No _______
Do you have a relationship to a bank or other financial/financial-credit organization that is in the process of bankruptcy or has ceased its activity due to bankruptcy?
Yes ______ No _______
If "yes", indicate the name of the financial/financial-credit organization, the position you held, give a detailed explanation of your responsibility:
______
Have measures of influence been applied to you by the National Bank?
Yes ______ No _______
If "yes", indicate when and for what violation
______
Information indicating your improper business reputation
Yes ______ No _______
If "there is", indicate when and for what violation
______
Information indicating the occurrence of financial or administrative problems in areas for which you were responsible:
Yes ______ No _______
If "there is", indicate when and for what violation
______ I, ______ (last name, first name, patronymic)
confirm that the above information is reliable and complete, and undertake to further provide to the National Bank information about all changes that have occurred in it. I acknowledge that in case of distortion or omission on my part, this may entail further application of measures of influence in respect of me and the guarantee fund in accordance with the legislation of the Kyrgyz Republic.
"_" ______ 20 (signature)

		Appendix 3 to the Regulations on the creation and registration of guarantee funds

SAMPLE APPLICATION

I request the issuance of a certificate of registration of a guarantee fund for carrying out activities in accordance with the requirements of the Law "On Guarantee Funds in the Kyrgyz Republic" and normative legal acts of the National Bank of the Kyrgyz Republic
______ (full name and legal address)
Data on state registration of the guarantee fund:
Registration number and date of state registration:
______
TIN: ______ OKPO Code: ______
Numbers of office (contact) telephones, fax and email addresses of the GF:
______

Seal of GF	"_" ______ 20
Signature of the head of the GF

		Appendix 4 to the Regulations on the creation and registration of guarantee funds

CERTIFICATE OF REGISTRATION

The National Bank of the Kyrgyz Republic certifies that
______ (full name of the guarantee fund)
______ legal address
______ (name of city, district, settlement, street, house)
is a guarantee fund carrying out activities for the purpose of increasing access to financing by providing guarantees to business entities directed by them to business development, expansion of production, acquisition and modernization of fixed assets, introduction of new technologies, innovation activity and opening of new enterprises. At the same time, financing means the provision of loans and their substitutes, as well as transactions/operations carried out in accordance with Islamic financing principles in accordance with the Law "On Guarantee Funds in the Kyrgyz Republic".

The record of accounting registration was entered on "___" _____20 under No. ___
Head of the department (Head/Director of the regional department/representative office of the National Bank)

		Appendix 5 to the Regulation on the creation and registration of guarantee funds

AMENDMENTS AND/OR ADDITIONS made to the charter ______ (full and abbreviated name of the GF)

No.	Current wording of the charter	New wording of the charter

Chairman of the Management Board of the GF (signature) full name, seal of the GF