Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 72 of 27 April 2018 on Amendments and an Addition to Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 147 of 16 July 2014 on Approval of the Rules for Appointment and Powers of the Temporary Administration (Temporary Administrator) of a Bank, Insurance (Reinsurance) Organization

"NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN" REPUBLICAN STATE INSTITUTION		REPUBLICAN STATE INSTITUTION "NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN"
BOARD RESOLUTION		RESOLUTION OF THE BOARD
27 April 2018 Almaty city		No. 72 city of Almaty

On Amendments and an Addition to Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 147 of 16 July 2014 "On Approval of the Rules for Appointment and Powers of the Temporary Administration (Temporary Administrator) of a Bank, Insurance (Reinsurance) Organization"

In order to improve the regulatory legal acts of the Republic of Kazakhstan, the Board of the National Bank of the Republic of Kazakhstan RESOLVES:

1. To introduce the following amendments and addition to Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 147 of 16 July 2014 "On Approval of the Rules for Appointment and Powers of the Temporary Administration (Temporary Administrator) of a Bank, Insurance (Reinsurance) Organization" (registered in the Register of State Registration of Regulatory Legal Acts under No. 9711, published on 3 October 2014 in the information-legal system "Adilet"):

the title of the resolution has been amended in the state language, the text in Russian does not change;

paragraph 1 has been amended in the state language, the text in Russian does not change;

in the Rules for Appointment and Powers of the Temporary Administration (Temporary Administrator) of a Bank, Insurance (Reinsurance) Organization approved by the said resolution:

the title has been amended in the state language, the text in Russian does not change;

the preamble has been amended in the state language, the text in Russian does not change;

paragraph 1 shall be set out in the following wording:

"1. Basic concepts used in the Rules:

1. temporary administration (temporary administrator) - a body appointed by the authorized body to ensure the preservation of property and implement measures to ensure the management of the organization (hereinafter - temporary administration);
2. head of the temporary administration - a person appointed by the authorized body from among its employees or persons who are not employees of the authorized body;
3. member of the temporary administration - a person appointed by the authorized body from among its employees or persons who are not employees of the authorized body;
4. persons who are not employees of the authorized body - employees of the organization carrying out mandatory deposit insurance and the Insurance Payments Guarantee Fund.";

paragraph 4 shall be set out in the following wording:

"4. The composition of the temporary administration is determined by the authorized body depending on the presence of branches and representative offices of the organization, as well as on the nature and scope of the upcoming work.

The head and members of the temporary administration are appointed with their consent, except in cases of appointment of an employee of the authorized body to the temporary administration.

Persons who are part of the temporary administration and are employees of the authorized body, the organization carrying out mandatory deposit insurance, the Insurance Payments Guarantee Fund are released from performing their official duties at their main place of work for the entire period of activity in the temporary administration.

For the specified period, they retain their wages and other payments established at their main place of work.

A person with a higher economic or legal education is appointed as the head of the temporary administration.

Employees of the authorized body who, under a written instruction from the management, provide assistance to the temporary administration in implementing the tasks and functions assigned to it, as well as exercising control over the activities of the temporary administration, have access to the premises occupied by the organization and to the documents at the disposal of the temporary administration.";

paragraph 5 shall be excluded;

paragraph 8 shall be set out in the following wording:

"8. The temporary administration begins to perform its duties on the day of its appointment by the authorized body. Copies of the decisions of the authorized body on revoking the license of the organization, adopted in accordance with Article 48 of the Law on Banks and Article 55 of the Law on Insurance, and on the appointment of the temporary administration are immediately handed over by the temporary administration to the head of the organization (the person replacing him) against signature and (or) sent to the organization via electronic, facsimile or other means of communication. If on the date of appointment of the temporary administration there is a temporary administration for the management of the organization in the organization, appointed in accordance with Article 62 of the Law on Banks, Article 55-1 of the Law on Insurance, the order of the authorized body on the appointment of the temporary administration appointed in connection with the revocation of the license is handed over against signature to the head of the temporary administration (the person replacing him) and (or) sent to the organization via electronic, facsimile or other means of communication. If it is impossible to hand over the decisions of the authorized body on revoking the license and appointing the temporary administration against signature and (or) send them to the organization via electronic, facsimile or other means of communication, the temporary administration draws up an act about this and brings the information to the attention of the authorized body.

If the absence or refusal of the head of the organization (the person replacing him) to familiarize himself with the decisions of the authorized body on revoking the license and appointing the temporary administration, including in the case of impossibility of sending the decision of the authorized body on revoking the license and appointing the temporary administration via electronic, facsimile or other means of communication, does not prevent the temporary administration from accessing the premises, property and documentation of the organization, the temporary administration begins to perform its duties on the day specified in the decision of the authorized body on its appointment.

If the head of the organization (the person replacing him) or other persons obstruct the work of the temporary administration, the actions provided for by paragraphs 19 and 20 of the Rules are carried out.";

add paragraph 9-1 with the following wording:

"9-1. If the organization has branches or representative offices, a subdivision of the temporary administration (hereinafter - the subdivision) is created at the location of the branch or representative office, which is accountable to the head of the temporary administration.

The subdivision is headed by its head (hereinafter - the head of the subdivision), who is appointed by the head of the temporary administration from among the members of the temporary administration no later than 1 (one) working day from the date of appointment of the temporary administration by the authorized body.

The head of the subdivision carries out his activities on the basis of a power of attorney executed in the manner established by the civil legislation of the Republic of Kazakhstan, and issued to him by the head of the temporary administration.

The head of the subdivision heads and coordinates the work of the subdivision, exercises powers to ensure the preservation of the organization's property located in the administrative-territorial unit and the pledged property transferred by the pledgor to the possession of the organization.";

paragraphs 10, 11 and 12 shall be set out in the following wording:

"10. The temporary administration demands from the head of the organization (the person replacing him) and other materially responsible persons the immediate transfer to it of seals (if any), stamps, cliches, keys, seals and documents of the organization specified in subparagraph 2) of paragraph 15 of the Rules.

If the head of the organization (the person replacing him) and other materially responsible persons of the organization fail to transfer the seals, stamps, cliches, keys, seals and documents specified in subparagraph 2) of paragraph 15 of the Rules, the temporary administration draws up an act on obstruction of the work of the temporary administration (hereinafter - the act on obstruction) in accordance with paragraphs 19 and 20 of the Rules, and within 2 (two) working days takes measures to produce duplicates of the necessary seals, stamps, cliches, keys and seals.

No later than the working day following the day of production of the duplicate seal, the temporary administration sends information about the production of the duplicate seal and an imprint of the duplicate seal (if any) to the authorized body.

11. During the term of the temporary administration, the conclusion and execution of transactions with the property of the organization, including the fulfillment by the organization of obligations, including repayment of accounts payable in any form, offsetting of counter homogeneous claims, is not allowed, except for transactions related to the fulfillment of current obligations of the organization, the cost estimate of the temporary administration, and cases provided for by the civil legislation of the Republic of Kazakhstan.

12. In order to minimize expenses, the temporary administration leases out the property of the organization, informing the authorized body about this.

Money received from leasing property is sent to the bank account of the organization.

The conclusion by the temporary administration of a lease agreement is carried out if the lessee agrees to vacate (return) the property at the first request of the temporary administration and to accept restrictions on the impossibility of subleasing the leased property.

The selection of the lessee is carried out by the temporary administration by conducting a tender, based on the results of which an agreement is concluded in accordance with the requirements of paragraphs 84-2, 84-3, 84-4 and 84-6 of the Rules for Forced Liquidation of Banks in the Republic of Kazakhstan, approved by Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Supervision of the Financial Market and Financial Organizations No. 40 of 25 February 2006, registered in the Register of State Registration of Regulatory Legal Acts under No. 4181, and paragraphs 82-2, 82-3, 82-4 and 82-5 of the Rules for Forced Liquidation of Insurance (Reinsurance) Organizations, approved by Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Supervision of the Financial Market and Financial Organizations No. 77 of 25 March 2006, registered in the Register of State Registration of Regulatory Legal Acts under No. 4257.

Former employees of the organization, persons who are creditors of the organization, as well as the chairman, members and engaged employees of the temporary administration of the organization are not allowed to participate in the tender.";

paragraph 14 shall be set out in the following wording:

"14. In order to ensure the preservation of the organization's property, if the organization has money, the temporary administration:

1) replaces keys, locks (hereinafter - special devices) for premises, buildings, gates, metal cabinets, safes, access to which is carried out using special devices;

2) if necessary, terminates the agreement concluded by the organization for the provision of security services (buildings, premises, property of the organization) and concludes an agreement with other legal entities providing security services.

The temporary administration applies to the authorized body with a request to replace, by the relevant subdivisions of the authorized body, the keys and passwords used to protect electronic documents and access to the automated systems of the organization.";

paragraphs 16 and 17 shall be set out in the following wording:

"16. The temporary administration performs the following actions:

1) performs functions for managing the organization and signs all documents of the organization;

2) within 3 (three) working days from the date of appointment:

submits to the banks and the authorized body in which the bank has correspondent accounts new documents with samples of signatures and seal imprints (if any), executed in accordance with the requirements of the Rules for Opening, Maintaining and Closing Bank Accounts of Clients, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 207 of 31 August 2016, registered in the Register of State Registration of Regulatory Legal Acts under No. 14422 (hereinafter - Rules No. 207);

reconciles the balances of bank accounts (including in foreign banks) with the accounting data of the organization and, based on the results of the reconciliation, draws up an act;

informs the registering bodies, the registrar, the central depository and the stock exchange about the decisions of the authorized body on revoking the organization's license and appointing the temporary administration in order to establish a ban on the registration of transactions for the alienation of the organization's property carried out not by the temporary administration, as well as on the removal of encumbrance from property whose pledge holder is the organization;

3) brings to the attention of shareholders, creditors and debtors of the organization the decisions of the authorized body on revoking the license and appointing the temporary administration by publishing an announcement in at least two periodicals in Russian and the state language distributed throughout the territory of the Republic of Kazakhstan;

4) conducts an inventory of assets, liabilities (balance sheet and off-balance sheet), documents of the organization, ensures their preservation, transfers the property and documents of the organization under a transfer-acceptance act in the manner established by Chapter 6 of the Rules;

5) determines the circle of persons bearing full material responsibility, including persons having access to the automated information system for accounting and preparation of financial and other reporting of the organization;

6) identifies the assets of the organization;

7) applies to the bodies that imposed encumbrances on the property of the organization with a request to remove encumbrances on fulfilled obligations;

8) organizes the collection of cash for its further crediting to the bank accounts of the organization;

9) terminates employment contracts with employees in accordance with the labor legislation of the Republic of Kazakhstan if there is no need to continue labor relations with them during the period of activity of the temporary administration;

10) to ensure the performance of its functions and duties, engages persons under employment contracts and contracts for the provision of services for a fee;

11) terminates contracts for the provision of services for a fee in accordance with the civil legislation of the Republic of Kazakhstan;

12) files lawsuits on behalf of the organization in courts, including on holding members of the organization's bodies, the chief accountant and other persons liable if their actions (inaction) caused damage to the organization;

13) upon detection in the course of its functions of the commission by third parties of an act containing signs of a crime, sends information to law enforcement agencies and the authorized body;

14) after completion of the transfer-acceptance of property and documents of the organization from the temporary administration to the liquidation commission, submits a report of the temporary administration on the work performed to the authorized body for approval;

15) suspends the accrual of remuneration on overdue bank loans and creates provisions for overdue bank loans in accordance with international financial reporting standards;

16) works with creditors and debtors after signing the transfer-acceptance act of documents specified in paragraph 43 of the Rules;

17) cancels all additional payments and benefits provided by the organization, except for cases provided for by the Law of the Republic of Kazakhstan of 25 April 2003 "On Mandatory Social Insurance".

17. The temporary administration of the bank performs the following actions:

1) no later than 5 (five) working days from the date of appointment, brings to the attention of the organization carrying out mandatory deposit insurance the decisions of the authorized body on revoking the license and appointing the temporary administration;

2) within 10 (ten) working days from the date of appointment, sends to foreign banks in which the organization's accounts are opened copies of the decision of the authorized body on revoking the license and appointing the temporary administration and documents with samples of signatures and seal imprints (if any), notarized, translated and apostilled in accordance with the requirements of the legislation of the Republic of Kazakhstan or international treaties ratified by the Republic of Kazakhstan;

3) within 10 (ten) working days from the date of revocation of the license, makes a decision on conducting an operation for the simultaneous transfer of assets and liabilities of the bank in part or in full to individuals and (or) legal entities to another bank (banks) in the manner established by the Rules for Conducting an Operation for the Simultaneous Transfer of Assets and Liabilities of a Bank Deprived of a License for Banking Operations to Another Bank (Banks), approved by Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Supervision of the Financial Market and Financial Organizations No. 176 of 5 August 2009, registered in the Register of State Registration of Regulatory Legal Acts under No. 5770;

4) no later than 30 (thirty) working days from the date of its appointment, provides to the organization carrying out mandatory deposit insurance information on deposits subject to guarantee and accrued amounts of remuneration on them, in forms agreed with the organization carrying out mandatory deposit insurance;

5) controls the crediting of money received by the bank, including those returned by borrowers on previously issued loans, income from previously conducted transactions, including remuneration on loans, and other income, as well as penalties, fines and forfeits, return of advance payments of the bank, as well as funds from the redemption of securities owned by the bank;

6) returns payment documents from the card index on accounts "Payment documents not paid on time";

7) returns to the bank's clients property placed in the bank's safe deposit boxes;

8) closes current accounts of the bank's clients in the manner determined by Rules No. 207;

9) reconciles the bank's bank accounts, transfers money from correspondent accounts in foreign banks and banks of the Republic of Kazakhstan to opened correspondent accounts in the National Bank of the Republic of Kazakhstan and closes correspondent accounts in foreign banks and banks of the Republic of Kazakhstan;

10) charges a fee for the services of the organization according to the tariffs and rates established in the organization, unless otherwise established by the banking legislation of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on insurance and insurance activities.";

subparagraphs 2) and 3) of paragraph 18 shall be set out in the following wording:

"2) within 10 (ten) working days from the date of revocation of the license of the insurance (reinsurance) organization, makes a decision on the transfer of the insurance portfolio, subject to agreement with the authorized body, in the manner provided for by Article 54-1 of the Law on Insurance and the Rules for the Transfer of an Insurance Portfolio and the Specifics of Transferring an Insurance Portfolio from the Day the Court Decision on Forced Liquidation of an Insurance (Reinsurance) Organization Enters into Legal Force, as well as during Conservation or Revocation of the License of an Insurance (Reinsurance) Organization, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 303 of 26 December 2016, registered in the Register of State Registration of Regulatory Legal Acts under No. 14787;

3) within no more than 30 (thirty) calendar days from the day of signing the consolidated transfer-acceptance act of documents and property of the insurance (reinsurance) organization from the insurance (reinsurance) organization to the head of the temporary administration, submits to the Insurance Payments Guarantee Fund the register of insurance contracts of the insurance (reinsurance) organization;";

the first part of paragraph 19 shall be set out in the following wording:

"19. If the heads and employees of the organization or other persons acting on their instructions, by committing unlawful actions or inaction, create conditions under which the temporary administration cannot fully or partially perform the functions assigned to it, the temporary administration draws up an act on obstruction.";

paragraph 21 shall be set out in the following wording:

"21. From the date of revocation of the license and appointment of the temporary administration, the organization ceases to carry out financial activities, including operations on existing accounts, except for cases related to expenses specified in paragraph 22 of the Rules.";

paragraph 26 shall be set out in the following wording:

"26. Labor remuneration expenses provide for the costs of labor remuneration of the organization's employees, taking into account the existing branches and representative offices of the organization.

When forming the cost estimate in terms of labor remuneration, calculations are based on concluded employment contracts, contracts for the provision of services for a fee and orders on hiring.

Changes in the terms of labor remuneration of employees are carried out by the temporary administration in accordance with Article 46 of the Labor Code of the Republic of Kazakhstan of 23 November 2015.";

paragraphs 29 and 31 shall be excluded;

paragraph 35 shall be set out in the following wording:

"35. Unforeseen expenses represent unplanned expenses of the temporary administration for urgent needs not provided for by subparagraphs 1), 2), 3), 4), 5), 6), 7) and 8) of paragraph 25 of the Rules, the amount of which does not exceed 500 (five hundred) monthly calculation indices for a bank and 200 (two hundred) monthly calculation indices established by the law on the republican budget for the corresponding financial year for an insurance (reinsurance) organization.";

paragraph 38 shall be set out in the following wording:

"38. The audit is conducted with verification of all banknotes, coins, strict reporting forms, other valuables and documents located in their places of storage (cash desks, ATMs, vaults, separately located at materially responsible persons (safes and other places of storage of valuables). The results of the audit are documented in an act.

If a shortage of cash and (or) valuables is confirmed, the materially responsible person provides the head of the temporary administration with a written explanation.

If a violation is established regarding the shortage of cash, the materially responsible person repays the resulting shortage of cash on the day the act is drawn up based on the results of the audit.

If it is impossible (refusal) to cover the amount of the shortage of cash by the materially responsible person, the documents on this fact are transferred to law enforcement agencies or to court.";

paragraph 43 shall be set out in the following wording:

"43. Based on the results of the inventory, the temporary administration accepts, and the head, chief accountant and employees of the organization hand over the property and documents of the organization, taking into account the results of their inventory (reconciliation).

The transfer-acceptance of documents and property of the organization from the previous management of the organization to the head of the temporary administration is formalized by a transfer-acceptance act, which is drawn up in 3 (three) copies. One transfer-acceptance act is sent to the authorized body.

The transfer-acceptance act of documents and property of the organization is sent to the previous management of the organization with a signing period of no more than 5 (five) working days from the day the act is received.

If the transfer-acceptance act is not signed by the previous management of the organization, a note about this is made in it and an act on obstruction is drawn up in accordance with paragraphs 19 and 20 of the Rules.";

The expense estimate of the temporary administration, in the form according to the annex, shall be set out in the wording according to the annex to this resolution.

1. The Department for Supervision of Banks (Kizatov O.T.) shall, in the manner established by the legislation of the Republic of Kazakhstan, ensure:

1) together with the Legal Department (Sarsenova N.V.), state registration of this resolution with the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days from the day of state registration of this resolution, sending of its copy in paper and electronic form in the Kazakh and Russian languages to the Republican State Enterprise with the right of economic management "Republican Center for Legal Information" for official publication and inclusion in the Reference Control Bank of Regulatory Legal Acts of the Republic of Kazakhstan;

3) posting of this resolution on the official internet resource of the National Bank of the Republic of Kazakhstan after its official publication;

4) within ten working days after state registration of this resolution, submission to the Legal Department of information on the implementation of the measures provided for by subparagraphs 2), 3) of this paragraph and paragraph 3 of this resolution.

1. The Department for Protection of the Rights of Consumers of Financial Services and External Communications (Terentyev A.L.) shall ensure, within ten calendar days after state registration of this resolution, sending of its copy for official publication to periodical printed publications.
2. Control over the execution of this resolution shall be entrusted to the Deputy Chairman of the National Bank of the Republic of Kazakhstan Smolyakov O.A.
3. This resolution shall enter into force upon the expiry of ten calendar days after the day of first official publication.

Chairman of the National Bank	D. Akishev

Annex

to the resolution of the Board

of the National Bank

of the Republic of Kazakhstan

dated "27" April 2018 No. 72

Annex

to the Rules of work, appointment and powers

of the temporary administration (temporary

administrator) of a bank, insurance

(reinsurance) organization

Form

"Approved"

Head of the temporary administration

---

(signature)

"__" ______ 20_ year

Expense estimate of the temporary administration

for ______ month ______ year

---

name of the organization

No.	Name of expense items	Amount of planned expenses (thousands of tenge)
1	2	3
1	Remuneration of personnel
1.1	Remuneration of the head and members of the temporary administration, as well as employees of the organization working on the basis of employment contracts
1.1.1	Official salary
1.1.2	Income tax
1.1.3	Mandatory pension contributions
1.2	Remuneration of persons providing services under paid services contracts
2	Contributions to the budget
2.1	Taxes
2.2	Fees
2.3	Other taxes and other mandatory payments to the budget
3	Administrative expenses
3.1	Services for hiring transport for official and economic needs
3.2	Communication services (telecommunication expenses, subscription fee for the use of telephone, telegraph, expenses for long-distance and international negotiations, services of postal and reference services)
3.3	Services for the protection and signaling of buildings and structures (own and pledged property)
3.4	Transport protection services
3.5	Services for providing parking for transport
3.6	Transport registration services
3.7	Transport technical inspection services
3.8	Transport insurance services
3.9	Utilities
3.10	Works on current repair, technical, service maintenance (inspection), dismantling of fixed assets and inventory, carried out by contract method
3.11	Lease of premises
3.12	Services for registration of real estate and relevant documentation with registering authorities
3.13	Property valuation services
3.14	Services for publication in mass media
3.15	Services for preparing the heating system for launch
3.16	Plumbing works
3.17	Property storage services
3.18	Services for notarization and apostilling of documents
3.19	Services for transportation, loading, unloading of property
3.20	Services for organizing and conducting auctions
3.21	Cash collection services
3.22	Services for conducting expertise
3.23	Software maintenance services
3.24	Document translation services
3.25	Installation, change or transfer of telephone numbers
3.26	Securities registrar services
3.27	Services for scientific and technical processing of documents
3.28	Services for servicing a bank account, transfers and payments of money made without opening a bank account
3.29	Services of private bailiffs
3.30	Services for mandatory insurance of employees against accidents during the performance of their labor (official) duties
3.31	Contributions to the social health insurance fund
4	Expenses for the acquisition of inventory
4.1	Expenses for keeping office equipment in working condition
4.2	Expenses for maintaining vehicles
4.3	Expenses for maintaining premises
4.4	Expenses for the acquisition of paper and form products
4.5.	Expenses for the acquisition of stationery
4.6	Expenses for the acquisition of fuels and lubricants
5	Travel expenses
6	Expenses for the return of money received under erroneous instructions
7	Expenses of the bank for conducting an operation for the simultaneous transfer of assets and liabilities of the bank to another (other) bank (banks)
8	Expenses of the insurance (reinsurance) organization for the transfer of the insurance portfolio in full to another insurance organization
9	Contingency expenses
Total for the month

Chief Accountant ______ ______

(surname, name, patronymic) (if any) (signature)

Executor ______ ______

(surname, name, patronymic) (if any) (signature)

Telephone number ______

"AGREED"

Ministry of Information and Communications

of the Republic of Kazakhstan

Minister ______ D. Abayev

"_____" ______ 2018 year

"AGREED"

Ministry of National

Economy of the Republic of Kazakhstan

Minister ______ T. Suleimenov

"_____" ______ 2018 year