NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

dated May 23, 2018 No. 2018-P-15/18-1-(NPA)

On Amendments to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

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 Activity," the Board of the National Bank of the Kyrgyz Republic

Resolves:

Make amendments to the following regulatory legal acts of the National Bank of the Kyrgyz Republic (attached):

Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Registration of Collateral in the Form of State Securities Issued Through the National Bank of the Kyrgyz Republic in Interbank Credit Operations" dated June 30, 2010 No. 52/1";
Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Regulation "On Depository Accounting of State Securities Issued Through the National Bank of the Kyrgyz Republic" dated March 28, 2013 No. 10/9".

This Resolution shall enter into force upon the expiration of fifteen days from the day of its official publication.
To the Legal Department:

publish this Resolution on the official website of the National Bank of the Kyrgyz Republic;
after official publication, send this Resolution to the Ministry of Justice of the Kyrgyz Republic for inclusion in the State Register of Regulatory Legal Acts of the Kyrgyz Republic.

To the Department for the Development of the State Language and Document Management of the National Bank of the Kyrgyz Republic to bring this Resolution to the attention of commercial banks and relevant structural subdivisions of the National Bank of the Kyrgyz Republic.
Control over the implementation of this Resolution is assigned to the Deputy Chairman of the National Bank of the Kyrgyz Republic - A.S. Tezekbaeva.


Acting Chairman of the Board of the National Bank of the Kyrgyz Republic		N.Zhenish


		Appendix to the Resolution of the Board of the National Bank of the Kyrgyz Republic dated May 23, 2018 No. 2018-P-15/18-1-(NPA)

AMENDMENTS

to certain regulatory legal acts of the National Bank of the Kyrgyz Republic

Make the following amendments to the Resolution of the Board of the National Bank of the Kyrgyz Republic "On Approval of the Rules for Registration of Collateral in the Form of State Securities Issued Through the National Bank of the Kyrgyz Republic in Interbank Credit Operations" dated June 30, 2010 No. 52/1":

exclude the word "state" from the title and paragraph 1 of the Resolution;

in the Rules for registration of collateral in the form of state securities issued through the National Bank of the Kyrgyz Republic in interbank credit operations, approved by the aforementioned Resolution:

exclude the word "state" from the title, throughout the text, and in Appendix 2;
replace the abbreviation "GCB" with the abbreviation "CB" throughout the text and in Appendices;
replace the words "Depository of GCB" in various grammatical forms with the word "Depository" in corresponding grammatical forms throughout the text and in Appendices 1, 2, 4;
replace the word "som" with the word "currency" in Appendices 1, 2, 4.
rephrase paragraph 2 as follows:

"2. These Rules are developed to streamline the process of registering pledge agreements at the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank), where the subject matter of the pledge consists of government securities issued by the Government of the Kyrgyz Republic and notes of the National Bank (hereinafter referred to as CBs), which are issued through the National Bank and accounted for in the depository at the National Bank in interbank credit operations, as well as actions regarding pledged assets in cases of fulfillment or non-fulfillment of obligations secured by a pledge.";

rephrase the first paragraph of Chapter 2 as follows:

"Securities issued through the National Bank - state securities issued by the Ministry of Finance of the Kyrgyz Republic on behalf of the Government of the Kyrgyz Republic and notes of the National Bank.";

in paragraphs four and five, replace the words "Primary Dealer or financial-credit organization" with the words "Direct Participant";
in paragraphs six and nine, replace the words "Primary Dealer" in various grammatical cases with the words "Direct Participant" in corresponding grammatical cases;
rephrase paragraph seven as follows:

"Direct Participant - a commercial bank licensed by the National Bank, having a correspondent/current account at the National Bank, the Social Fund of the Kyrgyz Republic, the State Accumulative Pension Fund under the Social Fund of the Kyrgyz Republic, CJSC "Central Depository", and the Agency for Deposit Protection of the Kyrgyz Republic, having concluded a corresponding agreement with the National Bank regarding work in the market of CBs issued through the National Bank.";

recognize paragraph ten as having lost force;
rephrase paragraph 3 as follows:

"3. Pledge agreements concluded between Direct Participants having depot accounts at the Depository are submitted to the National Bank and registered at the National Bank when concluding a transaction outside the Automated Trading System (hereinafter referred to as ATS).";

in paragraphs 8 and 11, replace the numbers "15:30 h." with the numbers "17:00 h.".
rephrase paragraph 9 as follows:

"9. The National Bank checks the presence of the CBs indicated in the submitted pledge agreements in the pledgor's depot accounts at the Depository. Registration of the Pledge Agreement is carried out in the ATS; the operation of the ATS is regulated by a Board Resolution. An entry regarding the date and number of registration, certified by the signature of the Depository controller, is made in the pledge agreement. One copy of the pledge agreement remains at the National Bank, while the second and third copies are transferred to the Pledgee and Pledgor, respectively.";

in the second paragraph of paragraph 10, exclude the words "legislation of the Kyrgyz Republic and";
supplement the first paragraph of paragraph 12 with a second sentence as follows:

"Additional pledge of securities and/or their partial release from an existing pledge agreement is carried out based on an Additional Agreement to the Pledge Agreement (Appendix 5).";

rephrase paragraph 13 as follows:

"13. A fee of 300 som is established for the registration of pledge agreements at the National Bank.";

rephrase paragraph 15 as follows:

"15. Voluntary transfer of securities located in the pledgor's pledge sub-account to the pledgee's investment sub-account, or to the general sub-account of the Pledge Manager at the Depository to offset obligations, may be carried out by the National Bank upon instruction from the Pledgee or Pledge Manager, agreed upon with the Pledgor (Appendix 4), on the day of its receipt.";

supplement the Rules with Appendix 5 as follows:


		"Appendix 5 to the Rules for Registration of Collateral in the Form of Securities Issued Through the National Bank of the Kyrgyz Republic

STANDARD ADDITIONAL AGREEMENT No. _______ to the Pledge Agreement dated ______


Bishkek		dated _____ ______ _______ year

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |......

National Bank of the Kyrgyz Republic, hereinafter referred to as "National Bank" or "Pledgee", represented by ______, acting on the basis of ______ and order of the National Bank dated ______, on one part, and ______, hereinafter referred to as "Bank" or "Pledgor", represented by ______, acting on the basis of the Charter, on the other part, hereinafter jointly referred to as "Parties", in connection with ______ under the Credit Agreement dated ______ have concluded this Additional Agreement (hereinafter referred to as Additional Agreement) to the Pledge Agreement dated ______ (hereinafter referred to as Pledge Agreement) on the following:

Rephrase Paragraph 1 of the Pledge Agreement as follows:

"1. To secure the performance of obligations by the Pledgor under the Credit Agreement, the Pledgor transfers to the Pledgee the following securities (hereinafter referred to as CBs) for a total nominal value of ______ (Amount in words) som, of the following issues and in the following volumes: | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | No. | Registration Number | Issue Date of CB | Maturity Date of CB | Quantity of CBs (pieces) | Nominal Price of 1 CB (currency) | Nominal Value of CB (currency) | | 1 | | | | | | | | 2 | | | | | | | | 3 | | | | | | | | | Total: | | | | | | 2. Other terms of the Pledge Agreement remain unchanged.

This Additional Agreement is an integral part of the Pledge Agreement.
This Additional Agreement is prepared in three (3) copies having equal legal force: 1 (one) copy - for storage at the Bank, 1 (one) copy - for submission to relevant authorized bodies for registration, 1 (one) copy - for storage at the National Bank." |

| LEGAL ADDRESSES, DETAILS AND SIGNATURES OF PARTIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |......

Resolution of the Board of the National Bank of the Kyrgyz Republic No. 2018-P-15/18-1-(NPA) on Amendments to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

NATIONAL BANK OF THE KYRGYZ REPUBLIC

RESOLUTION

On Amendments to Certain Regulatory Legal Acts of the National Bank of the Kyrgyz Republic

AMENDMENTS

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