On the Approval of the Regulation "On the Licensing of the Activities

of Housing Savings Credit Companies"

In accordance with Articles 20 and 68 of the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activities" and Articles 2 and 15 of the Law of the Kyrgyz Republic "On the Licensing and Permit System in the Kyrgyz Republic", the Board of the National Bank of the Kyrgyz Republic decrees:

1. To approve the Regulation "On the Licensing of the Activities of Housing Savings Credit Companies (attached).
2. The Legal Department:
- to publish this resolution on the official website of the National Bank of the Kyrgyz Republic;
- after official publication, to send this resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Normative Legal Acts of the Kyrgyz Republic.
3. This resolution shall enter into force fifteen days after the date of official publication.
4. The Supervision Department for Non-Banking Financial and Credit Organizations shall bring this resolution to the attention of commercial banks, OJSC "State Mortgage Company", and the Deposit Insurance Agency of the Kyrgyz Republic.
5. Control over the implementation of this resolution shall be assigned to the member of the Board of the National Bank of the Kyrgyz Republic supervising the Supervision Department for Non-Banking Financial and Credit Organizations.

Chairman T. Abdygulov

Annex
to the resolution of the Board of the National Bank of the Kyrgyz Republic dated "1" November 2019 No. 2019-P-33\55-1-(NFKU)

REGULATION

on the Licensing of the Activities

of Housing Savings Credit Companies

Chapter 1. General Provisions

1. This Regulation "On the Licensing of the Activities of Housing Savings Credit Companies" (hereinafter – the Regulation) establishes the procedure for licensing the activities of housing savings credit companies (hereinafter – HSCCs) established in the territory of the Kyrgyz Republic, the procedure for obtaining permission to acquire a threshold participation in the capital of HSCCs, the approval of HSCC officers, the expansion of HSCC activities through the establishment of separate structural subdivisions, and the procedure for approving amendments and additions to the constituent documents of HSCCs.

2. A housing savings credit company (hereinafter – HSCC) is a non-banking financial and credit organization holding a license for the right to conduct certain banking operations, whose activities are aimed at accumulating funds from depositors into housing savings deposits and providing its depositors with loans for individual construction, the purchase of residential houses or apartments, or for improving housing conditions within the framework of state housing programs.

3. An HSCC is a commercial organization established in the form of a joint-stock company and obtains legal entity status from the date of state registration in accordance with the legislation of the Kyrgyz Republic.

Founders/shareholders of an HSCC may be natural and/or legal entities meeting the following minimum requirements:

satisfactory financial condition;
absence of unfulfilled obligations for the payment of taxes and equivalent payments;
absence of enforcement measures taken or other decisions recognizing him/her/them as having committed violations of banking legislation, including if their actions (inaction) led to the revocation of a license/certificate from a financial and credit organization;
absence of a criminal record in the field of financial or economic crimes and offenses, not expunged or not extinguished in the manner established by the legislation of the Kyrgyz Republic;
absence of a court decision prohibiting the founder/shareholder from engaging in banking and/or financial activities.

The following legal and/or natural entities cannot be founders/shareholders of an HSCC:

legal entities registered in offshore zones or having as participants persons and/or affiliated persons registered in offshore zones, or natural persons residing in the territory of offshore zones, the list of which is established by the National Bank of the Kyrgyz Republic (hereinafter – the National Bank);
natural persons who are residents of offshore zones, residing in the territory of offshore zones, the list of which is established by the National Bank;
natural and legal entities who, in the established manner, have not submitted information about their activities, financial condition, composition of participants and any other information and documents allowing them to be reliably identified and the participants of the legal entity to be studied, including beneficial owners, or who have submitted such information that does not allow the participants of the legal entity, including beneficial owners, to be reliably identified and studied, as well as in cases where they have not confirmed their impeccable business reputation;
natural and legal entities who, in the manner established by the National Bank, have not confirmed the legality of the source of origin of the funds intended for the acquisition of shares in an HSCC.

4. To commence its activities, an HSCC must obtain a license from the National Bank for the right to conduct certain banking operations in accordance with the requirements of the normative legal acts of the National Bank.

5. An HSCC may carry out the following banking operations, subject to the restrictions established by the National Bank and provided that such operations are specified in the license:

1) acceptance of a housing savings deposit, i.e., an amount of funds in the national currency deposited by depositors of a housing savings credit company into the account of the housing savings credit company and intended to improve the housing conditions of the depositor of the housing savings credit company;
2) granting of loans to members of the housing savings credit system (hereinafter – HSCS) for individual construction, the purchase of residential houses (apartments) or for improving housing conditions, granted on terms of maturity, repayability and interest-bearing.

For the purposes of this Regulation, a member of the ЖСКС is understood to be a person who deposits money into an account at the ЖСКК for the purpose of obtaining a loan for individual construction, the purchase of residential houses (apartments), or for the improvement of housing conditions. The procedure for the operation of the ЖСКК with accounts and the issuance of loans are regulated by the normative legal acts of the National Bank.

Chapter 2. Requirements for documents,

submitted to the National Bank

6. Documents submitted to the National Bank in accordance with this Regulation must be described page by page, bound, numbered, signed and properly certified. Annual reports published in accordance with the requirements of the International Financial Reporting Standards (containing explanations and disclosures, a consolidated balance sheet (statement of financial position), a statement of profit or loss and other forms of financial statements, as well as an audit opinion confirming the reliability of the financial statements) may be submitted in the form of brochures printed by a printing house.

7. The original document or properly certified copies thereof must be submitted to the National Bank. Documents submitted by foreign founders/shareholders must be submitted in the manner established by the legislation of the Kyrgyz Republic. Documents submitted in a foreign language must contain a properly certified translation into the state and/or official languages.

If necessary, upon the request of the National Bank, individual documents are submitted in electronic form.

8. In the event of the withdrawal of an application and documents for obtaining a license, or upon refusal to issue a license, upon granting/refusing to grant an application for the acquisition of a threshold participation in the capital of the ЖСКК, and in other cases within the framework of this Regulation, documents submitted by the ЖСКК and applicants are not returned by the National Bank.

9. The National Bank reviews documents within the framework of this Regulation for their completeness and compliance with the requirements of the legislation of the Kyrgyz Republic.

If the documents submitted within the framework of this Regulation are incomplete or do not meet the established requirements (except in cases where the identified deficiencies/non-compliance are grounds for refusing to issue a license/consent), the responsible structural unit of the National Bank returns such documents to the applicant for revision with a written statement of the reasons.

10. If the documents do not meet the requirements set by the National Bank, the period for reviewing the documents begins from the date the National Bank receives documents that meet the stated requirements.

11. The period for reviewing documents by the National Bank does not include the time spent by the applicant on revising the documents, unless otherwise provided by this Regulation.

12. The National Bank reviews documents submitted for obtaining a ЖСКК license within a period not exceeding two months from the date of receipt of all documents meeting the established requirements. The period for reviewing documents may be extended by the deputy chairman/member of the Board of the National Bank supervising issues of supervision and licensing of HSCC activities, by fifteen working days.

The decision of the National Bank to issue a HSCC license or written consent for the state registration/re-registration of a HSCC is made by the deputy chairman/member of the Board of the National Bank supervising issues of supervision and licensing of HSCC activities.

The signing and issuance of a HSCC license for the right to conduct certain banking operations is carried out by the structural subdivision of the National Bank responsible for licensing HSCCs, and in the regional departments and the representative office of the National Bank in the Batken region – by the heads of the regional departments and the director of the representative office of the National Bank in the Batken region.

Chapter 3. Creation of a HSCC

13. After adopting a decision to create a HSCC, in order to prepare the necessary documents for the creation of the HSCC, its founders/shareholders determine an authorized person for contacts with the National Bank on issues of reviewing documents (hereinafter – the authorized person). In this case, the 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.

14. To obtain a HSCC license, the following documents must be submitted to the National Bank:

1) an application for the issuance of a license (Appendix 1), signed by the chairman of the Board of Directors or another person authorized by the founder/shareholder (in the case of a single founder/shareholder) or the general meeting of founders/shareholders;
2) the minutes of the meeting of the general meeting of founders/shareholders or the decision of the founder/shareholder (in the case of a single founder/shareholder) on the creation of the HSCC, on the approval of the charter, and on the appointment/election of officials of the HSCC (in two copies);
3) the founding agreement (in two copies) (in the case where there are two or more founders/shareholders). An approximate list of issues that must be reflected in the founding agreement is provided in Appendix 2;
4) the charter of the HSCC (in two copies). An approximate list of issues that must be contained in the charter is provided in Appendix 3;
5) information about the founders/shareholders of the HSCC (Appendix 4) with the attachment of questionnaires of the founders/shareholders (Appendix 5);
6) the HSCC's business plan for the upcoming three years, including the issues specified in Appendix 6;
7) information about the organizational structure of the HSCC (management bodies, structural subdivisions (departments, divisions), their functional duties, the range of issues considered or the list of operations they are authorized to perform, and subordination);
8) questionnaires (Appendix 7) and information (documents) confirming that the officials of the HSCC specified in paragraph 63 of this Regulation meet the requirements of this Regulation;
9) information allowing to determine the sources of origin of funds contributed by founders/shareholders to the charter capital of the HSCC. The National Bank may request additional information (documents) confirming the sources of origin of funds contributed to the charter capital;
10) a forecast-simulation model for fifteen years, developed
in accordance with the requirements of the Rules for Regulating the Activities of Housing-Savings Credit Companies;
11) an application for membership in the Deposit Protection Fund of the Kyrgyz Republic.

15. Documents for obtaining a license, provided for in paragraph 14 of this Regulation, shall be submitted at the location of the HSCC:

to the central office of the National Bank – for HSCCs located in the city of Bishkek and Chuy Region;
to the regional departments of the National Bank – for HSCCs located in the regions of the Kyrgyz Republic, except for Chuy and Batken Regions;
to the Representative Office of the National Bank in Batken Region – for HSCCs located in Batken Region.

16. When deciding on the issuance of a license to an HSCC, the National Bank shall issue written consent for the state registration of the HSCC in accordance with the requirements of the legislation of the Kyrgyz Republic with the authorized state body, attaching one copy of the submitted constituent documents specified in subparagraphs 2-4 of paragraph 14 of this Regulation.

17. The National Bank has the right to suspend consideration or revoke consent for the state registration of an HSCC on the following grounds:

1) if such changes have occurred in the financial or legal position of the applicant that may become grounds for refusing to issue a license to the HSCC;
2) if unreliable information was identified, including information about the founders/shareholders and officials of the HSCC.

The National Bank shall notify the HSCC in writing of the suspension or revocation of consent for the state registration of the HSCC within three working days from the day of the adoption of the corresponding decision.

18. After receiving the certificate of state registration, the HSCC shall, within ten calendar days, submit to the National Bank at its location the following documents:

1) an application for a license;
2) a copy of the certificate of state registration of the HSCC, certified by the seal of the HSCC;
3) notarized copies of the constituent documents with a mark of state registration;
4) a register of shareholders;
5) a document confirming the contribution of funds as the charter capital of the HSCC in the amount established in paragraph 30 of this Regulation to an accumulation account in a commercial bank of the Kyrgyz Republic. Funds held in the accumulation account may not be used by the founders/shareholders for any purposes until the license is obtained;
6) a document confirming payment of the state fee for the issuance of the license in the amount established by the legislation of the Kyrgyz Republic;
7) a document confirming the transfer of the entrance fee to the Deposit Protection Fund in accordance with the Law of the Kyrgyz Republic "On the Protection of Bank Deposits".

19. The license (appendices 8 and 9) shall be issued within fifteen working days after the submission of the documents specified in paragraph 18 of this Regulation and meeting the requirements of regulatory legal acts.

20. An integral part of the license is the list of permitted banking operations to the license for conducting certain banking operations in the national currency.

21. The license is issued for an unlimited term, is nominal and is not subject to transfer to third parties. A copy of the license is invalid.

22. The issuance of a license to an HSCC is carried out on a paid basis in the amount established by the legislation of the Kyrgyz Republic.

23. Upon receipt of the license (or a duplicate of the license), the HSCC's authorized representative shall present an identity document and duly executed documents/power of attorney of the HSCC for obtaining the license (or a duplicate of the license).

24. In case of loss or damage to the original license, the HSCC shall file an application with the National Bank for the issuance of a duplicate, attaching documents confirming the loss or damage of the license. The HSCC shall file the application within five working days from the day of loss or damage to the original license. A duplicate of the license shall be issued on the basis of the HSCC's application, a certificate from the lost and found office and a copy of an announcement in a newspaper about the loss of the license. When issuing a duplicate, the registration number of the HSCC's license remains unchanged. The issued license must bear the mark "Duplicate". The issuance of a duplicate of the license shall be carried out within five working days from the day the HSCC files the corresponding application. The issuance of a duplicate of the license shall be carried out on a paid basis in the amount established by the legislation of the Kyrgyz Republic.

Chapter 4. Grounds for Refusing to Issue a License

25. The National Bank has the right to refuse to issue a license on any of the following circumstances:

1) non-compliance of the constituent or other documents submitted for obtaining a license with the requirements established by the legislation of the Kyrgyz Republic and this Regulation;
2) submission of documents not in full. Upon elimination of the specified obstacles, the documents shall be considered on general grounds;
3) if, since the issuance of the National Bank's consent for state registration/re-registration, changes have occurred in the financial or legal position of the applicant (including a trend of deterioration in the financial position of the HSCC);
4) non-compliance of the officials of the HSCC specified in paragraph 63 of this Regulation with the qualification requirements established by this Regulation;
5) non-compliance of the founders/shareholders with the requirements established in this Regulation;
6) non-compliance of the size, structure, source of formation of the minimum charter capital of the HSCC with the requirements of the legislation of the Kyrgyz Republic;
7) non-compliance of the size of the minimum charter capital with the requirements established by the National Bank;
8) submission of documents for obtaining a license containing unreliable information or data;
9) non-payment of the state fee for the issuance of a license;
10) the existence of a court decision against the founders/shareholders prohibiting them from engaging in this type of activity and/or a court decision finding one or all of the founders/shareholders guilty of committing economic and/or official crimes;
11) failure to meet the requirements of this Regulation for obtaining a license;
12) on other grounds provided for by the legislation of the Kyrgyz Republic;
13) failure to pay the entrance fee to the Deposit Protection Fund in accordance with the Law of the Kyrgyz Republic "On the Protection of Bank Deposits (Deposits).

26. The National Bank shall notify the authorized person of the JSCC in writing of the grounds for refusing to issue a license within three working days from the date of making such a decision.

Chapter 5. Requirements for the Authorized Capital of the JSCC

27. The capital of the JSCC serves as a guarantee of the profitable and sustainable growth of the JSCC, to cover potential losses inherent in banking/financial business, is a guarantor of the trust of JSCC clients and acts as a measure of protection against possible risks that may arise in the course of banking activities.

28. The core of the JSCC's capital is the fully paid-up authorized capital. Only such authorized capital is included in the capital of the JSCC for which the JSCC has no obligations to return the funds invested by shareholders and which meets the requirements of the National Bank.

29. The authorized capital of the JSCC is formed only in the national currency of the Kyrgyz Republic, in non-cash form, exclusively from the funds of the founders/shareholders. Any change in the size of the authorized capital is made with the consent of the National Bank.

30. The minimum size of the authorized capital of the JSCC must be at least 100 000 000 (one hundred million) soms. Subsequently, the National Bank shall have the right to revise and establish the size of the minimum authorized capital of the JSCC by a resolution of the Board of the National Bank.

31. The JSCC shall carry out the issuance of shares in accordance with the legislation of the Kyrgyz Republic, taking into account the requirements provided for by the banking legislation of the Kyrgyz Republic.

32. When forming or increasing the size of the authorized capital of the JSCC, payment for shares may be made only in cash, as well as by directing the retained earnings of previous years to increase the size of the authorized capital of the JSCC. The formation or increase of the size of the authorized capital of the JSCC with fixed assets, tangible and intangible assets is not allowed.

33. The JSCC may issue only registered shares. The shares of the JSCC may be ordinary and preferred.

34. The JSCC is not entitled to accept its own shares as collateral.

35. Before obtaining a license, the JSCC is obliged to deposit funds in the amount of the minimum authorized capital into an accumulation account opened in one of the commercial banks of the Kyrgyz Republic.

36. The JSCC is prohibited from guaranteeing shareholders the payment of dividends on ordinary shares.

37. The National Bank shall have the right to prohibit or restrict the payment of dividends by the JSCC in the following cases:

1) if this leads to a violation of economic standards by the JSCC;
2) if the capital adequacy ratio of the JSCC is at the level of the minimum limit established by the National Bank;
3) if reserves for covering potential losses and damages have not been created or have been created in an insufficient amount, in accordance with the requirements of the National Bank;
4) if the JSCC has uncovered losses for previous years and/or for the reporting year;
5) if the financial condition of the JSCC deteriorates;
6) in other cases provided for by the banking legislation of the Kyrgyz Republic.

Chapter 6. Procedure for Acquiring Shares of the JSCC

38. To acquire in aggregate ten percent or more of the voting shares of the JSCC, a legal entity and/or an individual must meet the requirements set forth in paragraph 3 of this Regulation.

39. To acquire ten percent or more of the voting shares in the capital of the JSCC, a legal entity and/or an individual must obtain the prior permission of the National Bank.

1) To obtain permission to acquire shares of the JSCC, the following documents must be submitted to the National Bank:

for legal entities:

an application for the acquisition of shares of the JSCC;
copies of the constituent documents of the legal entity, certified by the seal of the legal entity;
a decision of the authorized body of the legal entity on the acquisition of shares of the JSCC;
documents and information on the sources of origin of the funds intended for the acquisition of shares of the JSCC;
documents and information confirming compliance with the requirements set forth in paragraph 3 of this Regulation;
documents confirming the satisfactory financial condition of the applicant;

for individuals:

an application for the acquisition of shares with a questionnaire attached in the form of Appendix 5;
documents and information on the sources of origin of the funds intended for the acquisition of shares;
documents and information confirming compliance with the requirements set forth in paragraph 3 of this Regulation;
documents confirming the satisfactory financial condition of the applicant.

2) A satisfactory financial condition of individuals and legal entities is understood as:

the absence of outstanding debt to the budget and tax authorities of the Kyrgyz Republic as of the date of submission of the application;
the absence of outstanding and overdue obligations to individuals and legal entities as of the date of submission of the application;
profitable activity as of the date of submission of the application (in relation to legal entities);

3) Individuals who have committed violations of the legislation of the Kyrgyz Republic in the banking and/or financial spheres, including the normative legal acts of the National Bank, in respect of whom the National Bank has adopted a decision recognizing their involvement in actions classified as unsafe, unreliable and unsound banking practices, cannot obtain the permission of the National Bank to acquire ten percent or more of the voting shares in the capital of the JSCC within five years from the date of detection of the fact of the violation.

40. If the threshold participation in the capital of the JSCC was acquired without the permission of the National Bank, such a transaction is void ab initio.

The National Bank has the right to apply to court with a claim for the application of the consequences of the invalidity of a void transaction.

41. Within thirty calendar days from the date of receipt of the application and documents for the acquisition of shares of the JSCC that meet the requirements established by this Regulation, the National Bank sends a letter to the JSCC regarding consent to or refusal of the acquisition of shares.

The decision of the National Bank to grant the application/to refuse to grant the application for obtaining the consent of the National Bank for the acquisition of shares of the JSCC is made by the Deputy Chairman/Member of the Board of the National Bank supervising issues of supervision and licensing of the activities of the JSCC, in regional directorates - by the heads of regional directorates.

42. The National Bank has the right to request additional information necessary for the consideration of the application for the acquisition of shares of the JSCC.

43. The National Bank has the right to refuse approval of the acquisition by a natural and/or legal person of ten percent or more of the voting shares in the capital of the JSCC in any of the following cases:

if the person intending to acquire shares does not meet the requirements of this Regulation;
if the person intending to acquire shares has provided unreliable or incomplete information.

44. Any natural and/or legal person intending (regardless of the method of acquiring ownership of the shares, including inheritance or restoration of ownership thereof) to acquire ten percent or more of the voting shares in the capital of the JSCC, including through the additional acquisition of shares, must submit an application in writing and obtain prior permission from the National Bank.

Any natural and/or legal person holding ten percent or more of the voting shares of the JSCC and intending to divest shares must, prior to the transaction, notify the National Bank thereof in advance.

Chapter 7. Opening of Branches and Representative Offices of the JSCC

45. The JSCC may open branches and representative offices, the activities of which are carried out in accordance with the legislation of the Kyrgyz Republic.

The National Bank maintains the Register of Branches/Representative Offices of the JSCC in electronic form.

46. Information about the branch and representative office (including their location) must be contained in the charter of the JSCC. The JSCC, at a general meeting of shareholders, adopts a decision on the opening of a branch and a representative office, and approves the entry of the relevant information about the branch and representative office into the charter of the JSCC.

47. A branch of the JSCC is its separate subdivision, not being a legal entity, located outside the place of its location and carrying out all and/or part of the operations on the basis of the Regulation on the Branch, and acting within the powers granted to it by the JSCC.

The branch has a single authorized capital and balance sheet with the JSCC, as well as a name that fully coincides with the name of the JSCC, with the addition of the word "branch".

48. A representative office is a separate division of the JSCC that is not a legal entity, which represents the interests of the JSCC and also enters into transactions or other permitted actions on its behalf, with the exception of the operations specified in paragraph 5 of this Regulation.

The representative office has a single authorized capital and balance sheet with the JSCC, as well as a name that fully coincides with the name of the JSCC, with the addition of the word "representative office".

49. The head of a branch/representative office is appointed by the authorized management body of the JSCC and acts on the basis of a power of attorney issued in the prescribed manner. The power of attorney must contain a list of operations and other actions for which the head of the branch/representative office is authorized to act on behalf of the JSCC.

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

1) an application for opening a branch/representative office (Appendix 10);
2) a decision of the authorized management body of the JSCC on opening a branch/representative office and its notarized copy;
3) the Regulation on the Branch, which must indicate, at a minimum, the purposes of establishing the branch, the list of banking operations delegated to the branch, the scale and nature of planned operations, the powers and functions of the head of the branch, and a notarized copy of the Regulation (for opening a branch);
4) the Regulation on the Representative Office (for opening a representative office);
5) copies of the personnel record sheets of the head and chief accountant of the branch, as well as the head of the representative office;
6) a power of attorney issued to the head of the branch/representative office, signed by the head of the JSCC and affixed with the seal of the JSCC, specifying the operations and transactions for which he is authorized.

51. The National Bank considers the application for opening a branch/representative office of the JSCC within fifteen working days from the date of submission of documents that meet the requirements of this Regulation and the normative legal acts of the National Bank.

52. Based on the results of the review, if the documents meet the established requirements, the National Bank issues consent to the state registration of a branch/representative office of the JSCC, attaching one original copy of the documents specified in subitems 2 and 3 (for opening a branch), 2 and 4 (for opening a representative office) of paragraph 50 of this Regulation.

53. After the state registration of a branch/representative office, the JSCC must, within ten calendar days from the date of registration, submit to the National Bank a notification letter with the following documents attached in one copy:

1) copies of the Regulation on the branch/representative office with a mark of state registration, certified by the seal of the JSCC;
2) copies of the certificate of state registration of the branch/representative office, certified by the seal of the JSCC.

The National Bank makes an appropriate entry regarding the registration of the branch/representative office of the JSCC in the Register of Branches/Representative Offices of the JSCC.

54. Upon the closure of a branch/representative office of the JSCC, within ten calendar days from the date of termination of the activities of the branch/representative office specified in the relevant decision, the JSCC submits to the National Bank at its location the appropriate notification letter (Appendix 11) with the following documents attached, certified by the seal of the JSCC:

copies of the decision of the authorized management body of the JSCC on the closure of the branch/representative office;
copies of the registration application for the registration of the termination of activities of the branch/representative office, submitted to the authorized state body responsible for the registration of legal entities.

Amendments and/or additions to the charter of the JSCC in connection with the closure of a branch/representative office are made by the JSCC upon the next amendment and/or addition to the charter.

55. After the state registration of the termination of activities of a branch/representative office, within ten calendar days from the date of registration of the termination of activities, the JSCC must submit to the National Bank a notification letter with a copy of the document of the authorized state body responsible for the registration of legal entities on the registration of the termination of activities of the branch/representative office attached.

The National Bank makes an appropriate entry regarding the termination of activities of the branch/representative office of the JSCC in the Register of Branches/Representative Offices of the JSCC.

56. Upon the appointment of a new head and/or chief accountant of a branch, the JSCC must notify the National Bank thereof in writing and submit information on the head and/or chief accountant of the branch within ten working days from the date of appointment. The notification must also provide information on the reasons for the dismissal of the person who previously held the position of head or chief accountant of the branch, as well as a copy of the decision of the authorized management body of the JSCC on the dismissal.

The National Bank makes an appropriate entry in the Register of Branches/Representative Offices of the JSCC.

57. In the event of a change in the location of a branch that does not entail its state re-registration, the JSCC must notify the National Bank thereof in writing within five working days.

In addition to the notification specified in this paragraph of the Regulation, the following documents must be attached:

1) a decision of the management body authorized in accordance with the charter of the JSCC on changing the address of the location of the branch (a copy certified by the JSCC);
2) a copy of the lease agreement or title document for the new premises.

58. Upon submission by the JSCC of documents meeting the requirements provided for in paragraph 57 of this Regulation, the National Bank makes an appropriate entry in the Register of Branches of the JSCC and sends a letter within ten working days to the JSCC regarding the entry of the branch in the Register of Branches of the JSCC with the new address.

A branch of the JSCC is entitled to commence activities at the new address from the date of receipt of the notification of the National Bank on the entry of the new address of the branch in the Register of Branches of the JSCC, provided for in this paragraph of the Regulation.

59. In the event that state re-registration of a branch or representative office is required in accordance with the legislation of the Kyrgyz Republic, the JSCC shall submit an application to the National Bank for the issuance of a letter of consent for the state re-registration of a branch or representative office of the JSCC. The following documents must be attached to the application:

1) a decision of the management body authorized by the JSCC charter to conduct the state re-registration of a branch or representative office, indicating the relevant reasons/basis for re-registration (a copy certified by the JSCC);
2) the Regulation on the Branch or Representative Office in two copies in the new edition or with amendments and additions – in cases of amendments and additions to the Regulation;
3) documents provided for in subclauses 2 and 3 of clause 57 of this Regulation, in the event of a change in the address of the location of the branch entailing its state re-registration in accordance with the legislation of the Kyrgyz Republic.

60. Within ten working days from the date of receipt of properly executed documents, the National Bank shall send to the authorized state body for the registration of legal entities a letter of consent signed by the Deputy Chairman/Member of the Board of the National Bank supervising issues of oversight and licensing of the activities of the JSCC, with one copy of the Regulation on the Branch or Representative Office attached, which serves as the basis for the state re-registration of the branch in the manner established by law.

61. In the event that the amendments and additions to the Regulation on the Branch do not comply with banking legislation, the National Bank may refuse to issue a letter of consent for the state re-registration of a branch of the JSCC.

62. After the state re-registration of a branch of the JSCC in the authorized state body, the JSCC shall be obliged to submit to the National Bank, within five working days, a corresponding written notice with a copy of the certificate of state re-registration of the branch or representative office certified by the JSCC and a copy of the Regulation on the Branch or Representative Office with a mark of state registration attached.

Chapter 8. Procedure for Approval of Officials

63. The officials of the JSCC whose candidacies are subject to mandatory approval with the National Bank are the Chairman and members of the Board of Directors, the Chairman and members of the Board, the Chief Accountant, the Risk Manager, as well as the head of the structural unit responsible for internal organizational activities to counteract the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities (compliance officer), the heads of the credit unit, the unit responsible for asset and liability management (if any), and the internal audit service (hereinafter referred to as heads of structural units). The heads and employees of the internal audit service and the structural unit responsible for internal organizational measures to combat the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities (compliance officer) must be appointed by the Board of Directors of the JSCC.

64. The officials of the JSCC specified in paragraph 63 of this Regulation must meet the minimum qualification requirements of the National Bank and have an impeccable business reputation in accordance with the requirements of the National Bank.

65. Candidates for the positions of Chairman and members of the Board of Directors must meet the following requirements:

1) having a diploma of higher education and work experience (experience) of at least
2 (two) years in the field of economic, banking, financial or legal matters;
2) having knowledge of banking legislation and corporate governance, confirmed by a document on completion of training in this field;
3) for a candidate for the position of Chairman of the Board of Directors – having at least one year of work experience in managerial positions in the banking and/or financial system.

For the purposes of this chapter of the Regulation, a managerial position means a position not lower than the head of a structural unit of a financial and credit organization. At the same time, work in the units of the above-mentioned organizations/companies related to the regulation of security issues and the implementation of economic activities is not included in the work experience.

At least one third of the composition of the Board of Directors of the JSCC must consist of independent members of the Board of Directors meeting the independence criteria specified in the Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic, Banks and Banking Activity" and in the Law of the Kyrgyz Republic "On Joint-Stock Companies".

66. The JSCC must have a Board of Directors consisting of at least three members, and a Management Board consisting of at least three members.

67. Candidates for the positions of Chairman and members of the Management Board, Chief Accountant, Risk Manager, and heads of structural units must meet the following requirements:

1) having higher education;
2) having work experience:
- Chairman of the Management Board of the JSCC – at least three years of work experience in the banking and/or financial system, including at least two years in managerial positions;
- members of the Management Board – at least two years of work experience in managerial positions in the banking and/or financial system;
- Chief Accountant – having higher education in the field of economics and finance and work experience during the last 3 (three) years in the banking or financial system;
- Risk Manager, heads of structural units – at least two years in the banking and/or financial system;
3) having knowledge in the field of legislation regulating the activities of banks and housing savings credit companies, risk management and corporate governance, confirmed by a document on completion of training in this area.

68. A candidate for the position of Chief Accountant, in addition to the requirements of paragraph 67 of this Regulation, must have a certificate confirming his/her knowledge of the International Standards of Accounting and Financial Reporting.

69. A candidate for the position of head of the internal audit service, in addition to the requirements of paragraph 67 of this Regulation, must have certificates in the field of International Standards of Auditing and Financial Reporting.

70. The head of the structural unit responsible for internal organizational measures to combat the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities (compliance officer), in addition to the requirements of paragraph 67 of this Regulation, must have a certificate of completion of training in the field of combating the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities.

71. In the event of the dismissal (release from the position held) of the officials specified in paragraph 63 of this Regulation, the JSCC is obliged to notify the National Bank of this within five working days from the date of making such a decision, indicating the reasons for dismissal and attaching a copy of the relevant decision of the authorized management body of the JSCC.

72. Within ten working days from the date of election/appointment of a candidate, as well as in case of changes in the composition of officials, the JSCC is obliged to submit to the National Bank at its location a notice of election/appointment and/or changes with the following documents attached:

1) the decision of the authorized management body of the JSCC on election/appointment;
2) the order on appointment as acting.

The officials specified in paragraph 63 of this Regulation, with the exception of the Chairmen and members of the Board of Directors, are appointed to the position as acting for the period of approval with the National Bank. Subsequently, after the National Bank has made a decision on the candidate's compliance with the established requirements, the JSCC submits to the National Bank the order of his/her appointment (a copy certified by the seal of the JSCC) within ten calendar days from the date of appointment;

3) questionnaires in the established form (Appendix 7);
4) other required documents, according to this chapter (certificates and/or other documents confirming the completion of training in specific areas).

For candidates for the positions of Chairman of the Board of Directors and Management Board, Chief Accountant of the JSCC, at least 2 (two) recommendations from persons who have worked or are working in the banking or financial field are additionally provided. At the same time, the provision of recommendations is not allowed:

- a) from employees of the National Bank;

- b) from any relatives;

- c) from the heads and employees of the JSCC petitioning for the approval of the candidate;

- d) from officials of affiliated companies of the petitioning JSCC.

The authenticity of the signature of the recommending person must be certified at his/her place of work or notarially.

73. In the event that the information provided is insufficient for making a decision, the National Bank may request additional information (documents) from the JSCC, the candidate, or third parties.

74. The documents provided are reviewed by the National Bank within thirty working days from the day the documents are submitted for review.

75. The notification of approval/refusal to approve the submitted candidacy by the National Bank is sent to the JSCC within three working days from the day the relevant decision is made.

Decisions on the approval/refusal to approve candidates for the positions of Chairman and members of the Board of Directors, Chairman and members of the Management Board, as well as the Chief Accountant of the JSCC are made by the Deputy Chairman/Member of the Management Board of the National Bank supervising issues of supervision and licensing of the JSCC's activities.

Decisions on the approval/refusal to approve candidates for the positions of risk manager and heads of structural subdivisions of the JSCC are made by the structural subdivision of the National Bank responsible for licensing the JSCC, and in the regional administrations and the National Bank's representative office in the Batken Region - by the heads of the regional administrations and the director of the National Bank's representative office in the Batken Region.

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

77. The National Bank has the right to refuse to approve candidates for the positions specified in paragraph 63 of this Regulation if:

1) the person is considered to have no or to have lost an impeccable business reputation, in accordance with banking legislation;
2) a guilty verdict has been passed against the candidates by a court decision, prohibiting them from working in the financial and credit system;
3) a guilty verdict has been passed against the candidates for committing crimes in the economic sphere and/or for official crimes;
4) the candidates previously held official positions in a bank and/or other financial and credit organization licensed (regulated) by the National Bank, and there are decisions of the Supervision Committee of the National Bank, orders or other acts of the National Bank recognizing their involvement in actions (inaction) as a result of which the license (certificate) of the bank and/or other financial and credit organization was revoked;
5) there is a conclusion, decision or other acts of the National Bank (decision of the Supervision Committee of the National Bank, orders, inspection reports, etc.) recognizing that the candidate:
- is involved in actions (inaction) as a result of which a temporary administration regime was introduced in the bank;
- is involved in actions classified as unhealthy and/or unsafe banking practices;
- has committed violations of the legislation of the Kyrgyz Republic;
6) the candidates do not meet the requirements of the Law of the Kyrgyz Republic
"On the National Bank of the Kyrgyz Republic, Banks and Banking Activities" and this Regulation.

78. The candidate is not entitled to hold positions in the JSCC specified in paragraph 63 of this Regulation, in the presence of facts specified:

in subparagraph 3 of paragraph 77 of this Regulation – for a period of seven years from the day of removal or expungement of the conviction;
in subparagraph 4 of paragraph 77 of this Regulation – for a period of five years from the day of the decision on the existence of a violation fact;
in the second and/or third paragraphs of subparagraph 5 of paragraph 77 of this Regulation – for a period of five years from the day the relevant decision enters into force;
in the fourth paragraph of subparagraph 5 of paragraph 77 of this Regulation – for a period of one year from the day of the decision on the existence of a violation fact.

79. The approval of candidates, in case they are involved as a suspect/defendant in a criminal case, is suspended from the day the National Bank receives information about this. A notification of this is sent to the JSCC within three working days from the day the procedure for approving the candidate for compliance with the requirements of the National Bank is suspended.

80. In case of establishing the fact of providing unreliable information or deliberate distortion of information by the candidate and/or the JSCC, the National Bank is entitled to refuse to approve the candidate or demand their replacement from the position held, if the candidate was approved.

81. In case of changes to the information contained in the questionnaire, the officials specified in paragraph 63 of this Regulation are obliged to notify the National Bank thereof in writing within ten working days after the changes occur, attaching a new questionnaire.

82. The National Bank is entitled to demand the replacement of officials upon subsequent identification, after the decision on the candidate's compliance with the requirements of the National Bank, of the grounds specified in paragraph 77 of this Regulation.

Chapter 9. Approval of Amendments and Additions to the Charter

83. For approval by the National Bank of the amendments and/or additions made to the charter, the JSCC submits the following documents to the National Bank at its location:

1) a petition for making amendments and/or additions to the charter;
2) the decision of the shareholder (in case of a single shareholder) or the minutes of the meeting of the general meeting of shareholders of the JSCC on making amendments and additions to the charter and a copy of such decision or minutes;
3) the charter and a duly certified copy of the charter.

84. The National Bank considers the documents submitted in accordance with the requirements of this Regulation within 30 calendar days. In case the documents comply with the requirements of this Regulation and there are no grounds for refusal, the National Bank issues to the JSCC consent to the state re-registration of the JSCC, attaching the original copies of the JSCC documents specified in subparagraphs 2 and 3 of paragraph 83 of this Regulation.

85. Within ten calendar days from the day of state re-registration, the JSCC is obliged to submit the following documents to the National Bank:

1) a copy of the certificate of state re-registration of the JSCC, certified with the seal of the JSCC;
2) a copy of the charter with a mark of state re-registration, certified with the seal of the JSCC.

The National Bank enters information about the state re-registration into the register.

86. Change in the size of the authorized capital:

1) an increase in the size of the authorized capital determined by the charter of the JSCC is carried out after full payment of the authorized capital by the shareholders. The adoption by the JSCC of a decision to increase the authorized capital is allowed only after the registration of the previous change in the size of the authorized capital in the charter of the JSCC and the recognition of the share issue as completed;
2) if an amendment regarding the size of the authorized capital is made to the charter of the JSCC, the JSCC, in addition to the requirements of paragraph 85 of this Regulation, submits the following documents:
- a) the decision of the shareholder (in case of a single shareholder) or the minutes of the meeting of the general meeting of shareholders of the JSCC on changing the size of the authorized capital and a copy of such decision or minutes (certified with the seal of the JSCC);
- b) a register of shareholders indicating information about the shareholders (Appendix 4)
- with the attachment of questionnaires of shareholders (Appendix 5) in case the specified information was not provided earlier), whose share in the authorized capital is five percent or more;
- c) a letter confirming the previous registration of the share issue (certified with the seal of the JSCC) and a certificate on the results of the share issue;
- d) in case of an increase in the size of the authorized capital:
  - information on the categories, classes, quantity, nominal value of the declared shares and the rights they grant to the shareholder;
  - a document confirming, on the day of submitting the petition, the deposit of funds in full amount towards increasing the authorized capital to an account in a commercial bank of the Kyrgyz Republic (statements from the cumulative account in the bank);
  - if the capital increase is made at the expense of additional capital contributed by shareholders or at the expense of retained earnings – the relevant decision of the shareholder (in case of a single shareholder) or the minutes of the meeting of the general meeting of shareholders is submitted (a copy certified with the seal of the JSCC);
  - information allowing to determine the sources of origin of funds (except in the case of increasing the authorized capital at the expense of retained earnings);
3) upon approval of an increase in the size of the authorized capital of the JSCC, the National Bank may demand the provision of information in the manner provided for newly established JSCCs, as well as demand the provision of additional information regarding the financial condition of the JSCC's shareholders and the operations they carry out, the provision of constituent documents of shareholders and their financial and other reporting.

87. The JSCC is obliged to notify the National Bank of the final registration of the results of the JSCC's share issue in accordance with the legislation on securities within thirty calendar days from the day the issue is recognized as completed and the results of the securities issue are registered.

In addition to the notification, the following must be submitted:

a document confirming the registration by the authorized state body for the regulation of the securities market of the results of the share issue;
an extract from the register of shareholders signed by the registrar confirming the changes made, or a new register of shareholders.

88. Change of name of the JSCC:

1) The change of name of the JSCC is subject to prior approval by the National Bank. Upon a change of name of the JSCC, its license is subject to replacement (reissuance).

The following must be submitted to the National Bank for approval of the new name:

- an application for a change of name of the JSCC with the proposed full and abbreviated names;

- confirmation from the authorized state body responsible for the registration of legal entities that the proposed name is not present in the Unified State Register of Legal Entities and that the name is not present in the state register of trade names.

The National Bank shall, within thirty calendar days, make a decision and send to the JSCC a response on the results of the approval of the proposed new name of the JSCC.

2) In the event that the new name of the JSCC is approved by the National Bank, the shareholders of the JSCC shall adopt a decision to change its name at a general meeting of shareholders and to make the corresponding amendments to the charter of the JSCC.
3) Within ten calendar days after the adoption of the decision by the general meeting of shareholders, the JSCC shall submit to the National Bank at its location the following documents:
- a petition for consideration of the amendments to the charter made in connection with the renaming of the JSCC, signed by the head of the JSCC;
- the decision of the shareholder (in the case of a single shareholder) or the minutes of the meeting of the general meeting of shareholders of the JSCC on making amendments to the charter in connection with the change of name of the JSCC, and a copy of such decision or minutes (certified by the seal of the JSCC);
- the new edition of the charter and a copy of the charter (certified by the seal of the JSCC).

The National Bank shall, within fifteen calendar days, issue consent to the JSCC for state re-registration in connection with the change of name, with the attachment of original copies of the submitted constituent documents.

4) The JSCC shall, within ten calendar days from the date of state re-registration, be obliged to submit to the National Bank at its location the following documents:
- an application for the issuance of a license with the new name;
- a copy of the certificate of state re-registration of the JSCC, certified by the seal of the JSCC;
- a copy of the charter with a mark of state re-registration, certified by the seal of the JSCC;
- a document confirming payment of the state duty for the issuance of a license in the amount established by the legislation of the Kyrgyz Republic.
5) The JSCC shall, within three working days from the date of replacement of the license in connection with its renaming, be obliged to notify the public through the mass media of the renaming, indicating the new name of the JSCC.
6) The JSCC that has changed its name must surrender to the National Bank the license with the old name. The National Bank shall replace the license of the JSCC with an explanatory inscription stating that this license is issued in replacement of the license with the old name. The National Bank makes the corresponding entry on the replacement of the license in the register.

83. A change of location of the HSCC within one populated area does not entail replacement of its license. Changes of location entailing the introduction of amendments and/or additions to the charter shall be coordinated in accordance with paragraphs 83-85 of this Regulation.

When the location of the HSCC changes without entailing state re-registration, the HSCC shall, within ten calendar days from the date the changes occur, submit the following documents to the National Bank:

notification of the change of location, including changes of the actual address, indicating contact telephone numbers and email address;
a copy of the lease agreement or a document confirming the HSCC's ownership right to the corresponding premises.

After receiving the documents specified in this paragraph of the Regulation, the National Bank shall make an entry in the register on the change of location of the HSCC.

Within two working days after the actual change of location, the HSCC must publish in the mass media information on the change of location (postal address) of the HSCC.

90. Amendments and additions introduced into the charter of the HSCC are an integral part thereof and enter into force from the date of state re-registration of the HSCC in accordance with the procedure established by legislation.

Amendments and additions to the charter of the HSCC may not be coordinated by the National Bank in the following cases:

1) if the proposed amendments and additions to the charter do not comply with the legislation of the Kyrgyz Republic and this Regulation;
2) if the HSCC refuses to comply with the National Bank's instructions to eliminate comments on the proposed amendments and additions to the charter;
3) in other cases provided for by the legislation of the Kyrgyz Republic.

Chapter 10. Reorganization and Liquidation of the HSCC

91. The HSCC may be reorganized (merger, accession, division, spin-off, transformation) by decision of its shareholders or by decision of the National Bank in accordance with the legislation of the Kyrgyz Republic.

92. The National Bank has the right to apply to court for the forced liquidation of the HSCC on the grounds provided for by the legislation of the Kyrgyz Republic.

93. The HSCC may be liquidated in accordance with the legislation of the Kyrgyz Republic. In this case, the HSCC must surrender the original copy of the license to the National Bank within three working days from the day the decision on voluntary liquidation is adopted and cease carrying out the operations provided for by the license from the day the decision on liquidation is adopted.

94. Adoption of a decision on voluntary liquidation is not allowed if the HSCC has not fulfilled all obligations to participants and creditors, including to financial and credit organizations.

95. The duties for the liquidation of the HSCC, including upon revocation of the license by the National Bank, are assigned to its founders/shareholders or to the management body authorized for liquidation by the charter of the HSCC, except in cases of insolvency (bankruptcy), when the HSCC is liquidated in accordance with the legislation of the Kyrgyz Republic on bankruptcy.

Chapter 11. Procedure for Appealing Decisions of the National Bank

96. Decisions adopted by the National Bank within the framework of this Regulation may be appealed in accordance with the Regulation on pre-trial settlement of disputes between the National Bank of the Kyrgyz Republic and commercial banks, organizations carrying out certain types of banking operations, and their founders/shareholders, legal entities and individuals.

97. Acts of the National Bank adopted within the framework of this Regulation (except for resolutions of the Board of the National Bank and the Supervisory Committee of the National Bank) do not require certification by seals.

Appendix 1

to the Regulation on Licensing

the Activities of Housing-Savings

Credit Companies

To the Chairman of the National Bank of the Kyrgyz Republic

SAMPLE APPLICATION

for the issuance of a license

We request the issuance of a license for the right to conduct certain banking operations for

"_________________________________________________________________", (full name of the HSCC)

with the following details:

1. Name ___________________________________________________
2. Legal address_______________________________________________
3. Full name of the authorized person _______________________________________

Contact details of the authorized person: Address _______________________

Telephone _________________ Fax __________________

4. Organizational-legal form:

Closed joint-stock company

5. Proposed capital structure:
- share capital (nominal) __________________________________
- nominal value of a share _______________________________________
- number of shares __________________________________________________

The founders/shareholders bear full responsibility for the accuracy of the information submitted.

The constituent documents are on _____ sheets, described page by page.

Founders/shareholders: full name, signature, date Address, telephone, fax 1.
2.
3.

(If the founder/shareholder is a legal entity, the full name of the legal entity is indicated, the signature of the head is placed and certified by a seal)

Appendix 2

to the Regulation on Licensing the Activities of Housing-Savings Credit Companies

List of issues that must be reflected in the constituent agreement of a housing-savings credit company:

1. Full and abbreviated name.
2. Purposes of establishment.
3. Information on the organizational-legal form.
4. Information on the activities carried out.
5. Information on the charter capital.
6. Rights and obligations of the founders/shareholders of the HSCC.
7. Information on shares.
8. Information on the management bodies (the Management Board, the Board of Directors), their competence and the procedure for appointment.
9. Procedure for reorganization and liquidation.
10. Other matters provided for by the legislation of the Kyrgyz Republic.

Appendix 3

to the Regulation on licensing the activities of housing savings credit companies

Indicative list of matters that must be contained in the charter:

1. Full and abbreviated name of the HSCC, indicating the organizational-legal form (in the Kyrgyz, Russian and English languages) and the location of the company.
2. Purposes of establishing the HSCC.
3. Operations carried out by the HSCC.
4. Information on the charter capital of the HSCC.
5. Information on the shares of the HSCC.
6. Rights and obligations of shareholders.
7. Placement of the HSCC's shares.
8. Alienation of shares by shareholders.
9. Register of shareholders and the procedure for registration of shareholders.
10. Distribution of profit.
11. Safeguarding the interests of clients.
12. Accounting and reporting of the HSCC.
13. Management bodies of the HSCC (Board of Directors, Management Board), their competence and the procedure for appointment and for their adoption of decisions
14. Control over the financial and economic activities of the HSCC.
15. Information on subsidiary enterprises, branches and representative offices.
16. Procedure for making amendments and additions to the charter.
17. Procedure for reorganization and liquidation of the HSCC.
18. Other matters provided for by the legislation of the Kyrgyz Republic.

Appendix 4

to the Regulation on licensing the activities of housing savings credit companies

Information on shareholders of the HSCC

LIST

of founders/shareholders

_________________________________________ (full name of the HSCC)

For legal entities

Postal code, address, telephone, fax

Declared charter capital

Paid as of ________ 20__

Full name of the legal entity

Full name of the Founder/shareholder of the legal entity

share in thousand soms

share of participation in the charter capital (in %)

contributed in thousand soms

share of participation in the charter capital (in %)

For individuals

Passport data

Full name

total

Chairman of the Board of Directors _______________ __________________ (signature) Full name Seal.
For a newly created HSCC, no seal is required; for an existing HSCC – the seal of the HSCC.

Appendix 5

to the Regulation on licensing the activity of housing-savings credit companies

Place for photo

QUESTIONNAIRE

of the founder/shareholder of the HSCC

(to be completed by an individual)

Full name

If you changed your surname:

(previous surname)

When:

For what reason:

Date of birth:

place of birth:

Passport

Series:

Number:

Issued by:

Date of issue:

Citizenship:

(Indicate how it was obtained: by place of birth, after marriage, due to other circumstances – provide explanation)____________________

Home address:

(according to documents)

Tel: ( ) _____________

Actual place of residence:

Tel.: ( ) ____________________

Main place of work:

Position held:

Office address:

Telephone:

( ) ____________

Fax:

( ) ___________

Education_________ (higher, incomplete higher, secondary specialized, secondary)

Name of the educational institution and its location

Year of admission and graduation

Specialty according to the diploma received

10. Work performed since the beginning of employment

Date of employment (month, year)

Date of departure (month, year)

Position held

Name of institution, location, full name of employer

Reason for departure

11. Indicate whether, in relation to you or in relation to a company with which you were associated as a significant participant and/or any other official (member of the Board of Directors, member of the executive body, chief accountant/financial manager, etc.), there have ever been in any country:

charges brought for committing administrative offenses within the last three years, including in cases of termination of the case or dropping of charges (yes/no) ________________;
disciplinary sanctions applied within the last three years (yes/no) ____________;
charges brought for committing crimes under criminal law, including in cases of termination of the criminal case, rendering of an acquittal, and release from criminal liability (yes/no) _____________.

If yes, provide a detailed description of the charge, conviction by a law enforcement body, indicating the name of the law enforcement body, the charge or disciplinary sanction applied by any state body, the results of the proceedings, the court decision (including in cases of termination of the case, dropping of charges, rendering of an acquittal, or release from criminal liability): ___________________________________.

12. Indicate whether there is an unexpunged criminal record. If yes, provide an explanation

______________________________.

Indicate whether a decision has been made in respect of you prohibiting you from engaging in any professional activity. If yes, provide an explanation ______________________.

13. Indicate each company that has been compulsorily declared bankrupt or is in the process of compulsory liquidation, with which you were associated as an official (member of the Board of Directors, member of the executive body, chief accountant/financial manager, etc.) or a significant participant ____________________________________________________.

Provide a detailed justification of your role and scope of responsibility as an official or significant participant in the company with which you were associated and which was placed in conditions related to compulsory bankruptcy, liquidation ___.

14. Has an investigation been conducted in respect of you or a company with which you were associated as an official (member of the Board of Directors, member of the executive body, chief accountant/financial manager, etc.) or a significant participant, by state or regulatory authorities. If yes, provide an explanation of the reason __________________________________.

15. Are you currently involved in any legal proceedings. If yes, provide an explanation _____________________

16. Marital status ________________________________

List close relatives (parents, children over 16 years of age, spouse, brothers, sisters, grandfathers, grandmothers):

Full name

Relationship

Date and place of birth

Position and place of work

Home address, tel. no.

17. If there is loan debt (other obligations) to anyone, provide the following information for each debt (obligation):

Name of creditor

Date of issue

Amount of credit (loan)

Interest rate

Purpose of credit (loan)

Description and amount of collateral

Payment terms

Outstanding balance on credit (loan)

Outstanding balance on interest for the credit

Overdue debt (principal amount, interest for the credit)

18. Provide the following information:

a) Personal report on assets and liabilities as of “___” _______________

(indicate currency)

Assets

Amount (in soms)

Cash

Deposit funds in financial and credit organizations

Investments in companies

Securities

Real estate, including that which is pledged or subject to seizure

Accounts receivable (including funds provided as a loan)

Other assets

Total assets

Liabilities

Debt on credits

Other liabilities

Total liabilities

Net worth (assets-liabilities)

Personal guarantees issued

b) information on sources of income

(indicate currency)

Sources of income

Previous year 20___ year

Current year (expected amount) 20____ year

Wages at the main place of work (including bonuses)

Wages not at the main place of work, including royalties, other payments

Dividends

Interest

Other income from real estate

Other income

Total

Expenses

Expenses (personal, for consumption)

Loan payments: principal amount interest

Other expenses

Total expenses

Net income (expense)

19. Indicate companies in any country in which you were (in the case of alienation of a share in the charter capital, the date of alienation must be indicated) and/or are a founder/shareholder during the last 10 years:

Name of the legal entity, location

Type of activity of the legal entity

Number of shares held

Share of ownership in capital in soms

Share in the charter capital of this legal entity in %

Taxpayer identification number (TIN)

20. Additional information:

1). Do you intend to include new candidates in the Board of Directors of this HSCC (if yes, a brief resume must be submitted).
2) Do you intend to make significant changes to the policies of the HSCC and the management of the HSCC (if yes, it is necessary to briefly describe the proposed changes).

21. Provide any other information that you consider important for consideration of the application for the acquisition of shares of the HSCC.

22. I, _____________________________________________

(last name, first name, patronymic)

I confirm that the information provided above in the questionnaire is accurate and complete and is provided in accordance with my knowledge and information on the issues specified in the questionnaire. I acknowledge that in the event of intentional distortions and omissions on my part, this may serve as grounds for refusal to satisfy the application for the acquisition of shares of the HSCC and entail liability in accordance with the legislation of the Kyrgyz Republic.

____________ signature "___" ____________ y.

Notes:

Each page of the questionnaire must be signed
Corrections in the questionnaire are certified with the words "corrected to be believed" and the candidate's handwritten signature.

Date

QUESTIONNAIRE

of the founder/shareholder of the HSCC

(to be completed by a legal entity)

1. Name of the legal entity (hereinafter – the "company") _____________________________________________________________________________

(indicate the full and abbreviated name of the legal entity).

2. Legal address of the company _____________________

3. Date of establishment of the company ________________________________

4. TIN ___________________________________

5. Date of registration with the authorized body for registration of legal entities______________________

(No. of the certificate of state registration/re-registration).

6. In which banks the company's accounts are opened: _________________.

7. Describe the types of activities that the company is permitted to engage in, according to the license(s) (or other permitting document), indicating the number of the license (permitting document) and the body that issued the license (permitting document):

8. Describe other types of activities that the company engages in:

9. Persons having common interests with _______________________

(full name of the company):

1) legal entities and individuals who are participants/shareholders (full name of the company):

Full name of legal entities, full name of individuals

Number of shares held

Share in the charter capital

2) companies in which __________________________________

(full name of the applicant – legal entity), is a participant/shareholder:

Full name of legal entities

Number of shares held

Share in the charter capital

3) affiliated with __________________________

(full name of the company)

legal entities and individuals:

Full name of legal entities, full name of individuals

Number of shares held

Share in the charter capital

10. Indicate the company's officials, their position in the company, as well as their citizenship (members of the Board of Directors (supervisory body), members of the Management Board (executive body), financial manager (chief accountant).

11. Are the members of the Board of Directors or officials (members of the Board of Directors (supervisory body), members of the Management Board (executive body), financial manager (chief accountant) of the company the owners of shares of the HSCK, of which the company intends to become a shareholder? If yes, it is necessary to indicate the number of shares held by the specified officials of the company:

No.

Full name

Number of shares held

Share in the charter capital of the HSCK

Additional information or notes

12. Does the company have loan (credit) debt to financial and credit organizations and/or other persons, if yes, it is necessary to indicate the date of obtaining the loan (credit), the purposes of obtaining the loan(s) (credit), the received amount of the loan (credit) and the outstanding balance on the principal amount of the loan (credit) and interest thereon as of the date of application:

Name of creditor

Date of issue

Amount of loan (credit)

Interest rate

Purpose of loan (credit)

Description and amount of collateral

Payment terms

Outstanding balance on the loan (credit)

Outstanding balance on interest for the credit

Overdue debt (principal amount, interest for the credit)

13. Does the company intend to include representatives of the company in the Board of Directors of this HSCK (if yes, it is necessary to indicate the candidates), and does the company intend to make significant changes to the policies of the HSCK and the management of the HSCK (if yes, it is necessary to indicate the proposed changes).

14. Indicate all structural subdivisions of the company:

Subdivision (branch, representative office)

Address

Head

Type of activity

Other information or notes

15. Indicate whether the company is involved in litigation with anyone, if yes, provide detailed information about the details of the litigation (plaintiff, defendant, subject of the dispute, in which court instance the case is being considered, at what stage of consideration the case is).

16. Other information that is material in the opinion of the applicant:

Signature of the head of the company
Seal of the company.

Appendix 6

to the Regulation on licensing the activities of housing savings credit companies

LIST

of main issues that must be reflected in the business plan

1. Introductory part

1) indicate the name of the HSCK, location of the HSCK;
2) indicate the authorized person, his address, phone number.

2. Description of the area of activity of the HSCK

1) indicate the intended market territory in which the HSCK will operate;
2) list and briefly describe the intended services. Pay attention to the intended credit policy (risk assessment mechanism for granting loans, mechanism for continuous monitoring of granted loans, other issues related to the intended credit policy), as well as the conduct of other operations that are priorities for the HSCK being created;
3) indicate the chairman and members of the Board of Directors, chairman and members of the Management Board of the HSCK.
List the intended shareholders whose number of shares will be five or more percent of those issued for circulation, indicate the percentage of shares that are expected to be purchased by them.

3. Management and administration

1) indicate the name of the HSCK and the scope of duties of the Management Board and officials, describe the plan for attracting personnel and conducting the personnel policy of the HSCK;
2) indicate the proposed candidates for officials, as well as the qualities they must possess. Indicate the essence and scope of experience they must possess in order to be able to provide the proposed services or serve the proposed market areas;
3) indicate any possible conflicts of interest;
4) describe any agreements that the HSCK intends to conclude for the implementation of its activities.

4. Analysis of the HSCK's activities:

1) analyze and describe the markets that the HSCK will have to serve, indicate size, income and other economic indicators. Include the anticipated changes in the market, the factors influencing these changes, and their impact on the HSCK being created. To the extent necessary for making business decisions, describe the differences between the markets that you will serve;
2) analyze competition. List the competitors within the market service area, competitors located outside and having the ability to influence the markets served, as well as any potential competition.
- Provide an analysis of market strategies, as well as the expected results with respect to the relative degree of influence on the value of market shares and prices;
3) explain the chosen strategy in order to gain a share of each market and indicate the expected results;
4) describe the possible risks of the HSCK's activities and the risk management strategy.

5. Plans and goals

1) consider the main planning objects used in market analysis and in setting plans and goals for the new HSCK. Include at least the following: market growth, interest rates, cost of funds and competition;
2) describe the internal control mechanism aimed at compliance with legislation on countering the legalization (laundering) of criminal proceeds and the financing of terrorist or extremist activities;
3) describe the plan for attracting personnel and conducting personnel policy;
4) how the formation of the HSCK's clientele is envisaged.

6. Structure of assets and liabilities

The projected balance sheet and income statement must reflect changes in assets and liabilities, the volume for each type of service, as well as salaries for officials and personnel, and must be based on the planning objects that must be presented as part of the application, market analysis and strategy discussed above. The following are the proposed forms for the forecasts.

Discuss the organizers' plans regarding providing the new HSCK with an independent external audit. To fulfill the licensing conditions, the National Bank may require that the HSCK hire an independent external auditor.

7. Capitalization/equity plan

1) provide justification for how the proposed capital structure will be achieved and explanations of why the organizers believe that the proposed amount is sufficient under market economy conditions. The organizers are expected to establish capital in an amount sufficient to compete effectively in the market area and to appropriately support the planned operations;
2) set out the plans for initial capital raising and financing of growth during the first three years. Explain how the plans will ensure the HSCK's compliance with the main standards established by the National Bank;
3) indicate the number and class of shares issued, the nominal and sale value of the share;
4) provide an assessment of the adequacy of the projected capital taking into account the risk-weighting of assets;
5) describe the HSCK's credit policy and the mechanism for assessing risk criteria.

Appendix 7

to the Regulation on Licensing the Activities of Housing Savings Credit Companies

QUESTIONNAIRE

(to be filled out by an official of the HSCK)

1. Full name _____________________________________________________________

No.

Full name

Indicate the proposed position in the HSCK: ____________________

Name of the HSCK: _____________________

If you changed your surname: (previous surname)

When:

For what reason:

Date of birth:

Place of birth:

Passport

Series:

Number:

Issued by:

Date of issue:

Citizenship:

(Indicate how it was obtained: by place of birth, after marriage, under other circumstances – provide explanation)

Home address: (according to documents)

Tel: ( )

Actual place of residence:

Tel.: ( )

Information on knowledge in the area of:

Yes/No

banking legislation

corporate governance

risk management

credit activity

accounting and financial reporting

liquidity management

legislation on auditing activity and International Standards on Auditing

Main place of work:

Position held:

Office address:

Telephone: ( ) ____________

Fax: ( ) ___________

12.Education ___________________________________________________________ (higher, incomplete higher, bachelor, master, secondary specialized, secondary)

Name of educational institution and its location

Faculty or department

Year of admission and graduation

Specialty according to the diploma received

Training at courses conducted by various training centers.

Topic of seminar or course

Organizer of seminar

Place of attendance

Date of attendance

Availability of certificate

13. Work performed since the beginning of employment (including activity as a member of the Board of Directors):

Date of hire

Date of dismissal

Position held

Name of institution, location, full name of employer

Reason for dismissal

14. Recommendations provided by:

1. Full name ___________________________________________________
2. Position and place of work _____________________________________
3. Home address, tel., fax, email ___________________________
1. Full name ____________________________________________________
2. Position and place of work ________________________________________
3. Home address, tel., fax, email ___________________________

*Recommendations are provided by persons who worked with the candidate at his previous places of work or had business relations with him. The recommendation must indicate the last name, first name, patronymic, place of work, position, telephone, fax, email address and address of the recommender.

15. Indicate companies in any country in which You were and/or are a founder/shareholder, manager (including a HOA, to whose management You were elected or appointed) during the last 10 years:

Name of company, location

Main types of activity of the company

Number of shares held

Amount of ownership in soms

Share in the company's charter capital, in %

Head of the company

16. Indicate whether, in relation to you or in relation to a company with which you were associated as a significant participant, controlling person and/or member of the Board of Directors or other official, there have ever been, in any country:

charges brought for offenses and/or crimes (yes/no)

disciplinary sanctions applied (yes/no)

17. Do you or any of the companies specified in item 15 have common interests with the ZhSKK in which you are applying for a position? If yes, provide detailed explanations

18. Indicate whether there is an outstanding criminal record. If yes, provide an explanation

Indicate whether a decision has been taken in relation to you prohibiting the pursuit of any professional activity. If yes, provide an explanation

19. Indicate each company that has been compulsorily declared bankrupt or is in the process of compulsory liquidation, with which you were associated as a head, official (member of the Board of Directors, member of the Management Board, chief accountant/financial manager) or significant participant (ownership of 10 (ten) percent or more of shares).

Provide a detailed justification of your role and scope of responsibility as a head, official or significant participant of the company with which you were associated and which was placed in conditions related to compulsory bankruptcy, liquidation

20. If there is loan debt (other obligations) to anyone, provide the following information for each debt (obligation):

Name of creditor

Date of issuance

Loan amount, in thousand soms

Interest rate

Purpose of the loan

Description and amount of collateral

Payment terms

Outstanding loan balance, in thousand soms

Outstanding interest balance, in thousand soms

Overdue debt (principal amount, interest)

21. Have there been cases where you were unable to repay a debt to any financial-credit organization under a personal loan, as well as under a loan for which you acted as guarantor, surety. If yes, provide explanations

22. Are you currently participating in any court proceedings. If yes, provide an explanation

23. Provide the following information:

1. Personal report on assets and liabilities as of "___" _________________.

Table 1

Assets

Amount (in soms/for foreign citizens – in US dollars) USA)

Cash

Deposit funds in financial-credit organizations

Investments in companies (table of item 15 of this questionnaire)

Securities

Real estate, including that which is pledged or under arrest

Accounts receivable, including funds provided as a loan

Other assets

Total assets

Liabilities

Loan debt

Accounts payable

Other liabilities

Total liabilities

Net worth (assets-liabilities)

Personal guarantees issued

Table 2

Sources of income

Previous year 20__ year

Current year (expected amount) 20__ year

Salary at primary place of employment (including bonuses)

Dividends

Interest

Other income

Total

Expenses

Expenses (personal, for consumption)

Loan payments, principal amount, interest

Other expenses (specify)

Total expenses

Net income (expense)

24.Maritalstatus ____________________________________________________

List close relatives over 16 years of age (parents, children, spouse, brothers, sisters):

Full name

Relationship

Date and place of birth

Place of work, position

Home address, telephone

25. Provide complete information on what interests connect you to the HSCC, for a position in which you are applying. Any other information that you consider important for consideration during approval for the position should also be indicated. Independent members of the Board of Directors must confirm compliance with the independence criteria.

I, ________________________________________________________________________ (last name, first name, patronymic)

confirm that the above information in the questionnaire is accurate and complete and is provided in accordance with my knowledge and information on the issues specified in the questionnaire. I acknowledge that in the event of intentional distortions and omissions on my part, this may serve as grounds for refusal of approval for the recommended position and entail liability in accordance with the legislation of the Kyrgyz Republic.

_____________________ signature
«__» _________________ year date

Appendix 8

to the Regulation on Licensing the Activities of Housing Savings Credit Companies

NATIONAL BANK OF THE KYRGYZ REPUBLIC

LICENSE No.

of the housing savings credit company

for the right to conduct certain banking operations

in the national currency

__________________________________________________________________ (full corporate name of the legal entity)

__________________________________________________________________ (abbreviated corporate name of the legal entity)

city of ___________________

1. Has the right to carry out certain banking operations specified in the list of permitted banking operations in accordance with the legislation of the Kyrgyz Republic
2. An integral part of this license is the list of permitted banking operations.

This license enters into force on the day of its signing. The license is non-transferable and perpetual.

The license is registered (date, month, year).

No. ____________ form series ___________

Head of the department/head of the regional department/director of the representative office of the National Bank in Batken region ___________________________ Full name, signature Seal of the National Bank

Appendix 9

to the Regulation on Licensing the Activities of Housing Savings Credit Companies

LIST OF PERMITTED BANKING OPERATIONS

to license No. ____, issued (date, month, year)

for the right to conduct certain banking operations in the national currency

_________________________________________________________________ (full corporate name of the legal entity)

Name of the banking operation

Currency of the banking operation

Date from which the permit is valid

Note/restriction (indicating the date from which the restriction is valid)

No. ____________ form series ___________

Head of the department/head of the regional department/director of the representative office of the National Bank in Batken oblast ___________________________ Full name, signature Seal of the National Bank

Appendix 10

to the Regulation on licensing the activities of housing savings credit companies

SAMPLE APPLICATION

of a HSCC for opening a branch /representative office

_____________________________________ (on the HSCC letterhead)

Hereby «____________________________________________________________________» (name of the HSCC)

requests approval for opening a branch/representative office in _______________________________________________________________________ (name of the settlement, location)

in accordance with the decision_______________________________________________________ (name of the HSCC management body that, in accordance with the charter, adopted the decision to open a branch/representative office)

This branch/representative office is vested with powers for the right to conduct the following operations and transactions:

(all operations and transactions are indicated, the right to perform which has been delegated to the branch/representative office in accordance with the Regulation on the branch/representative office within the framework of the license issued to the HSCC by the National Bank, or the powers of the representative office are indicated).

The following have been appointed as the manager and chief accountant (for a branch): ____________ (Full name)

Attachment: copies of personnel record sheets for the manager and chief accountant of the branch/representative office, power of attorney, totaling _____ sheets.

The HSCC is fully responsible for the accuracy of the information provided.

Head of the executive body of the HSCC (signature) Full name Seal of the HSCC «_» ____________________ 20

Appendix 11

to the Regulation on licensing the activities of housing savings credit companies

SAMPLE NOTIFICATION

of a HSCC on closing a branch/representative office

_______________________________________ (on the HSCC letterhead)

Hereby «______________________________________________________________________» (name of the HSCC)

notifies of its intention to close the branch/representative office (name) in ________________________________________________________ (name of the settlement, location)

in accordance with _________________________________________________________________ (name of the HSCC management body that, in accordance with the charter, adopted the decision to close the branch/representative office)

The branch/representative office of the HSCC has no obligations:

to clients and creditors serviced in this branch (when closing the branch);
to the budget.

Assets and liabilities have been transferred to the balance sheet of the HSCC.

The HSCC is fully responsible for the accuracy of the information provided.

Head of the executive body of the HSCC (signature) Full name Seal of the HSCC «_» ________________ 20