Article 74-3. Forced reorganization of the bank. Rehabilitation procedures of the Law on Banks and Banking Activities in the Republic of Kazakhstan

      1. The compulsory reorganization of the bank is carried out by a court decision in accordance with the current legislation, taking into account the specifics provided for by this Law.  

      The rehabilitation procedure in respect of the bank is carried out by a court decision as part of measures to forcibly reorganize the bank in order to restore its solvency and (or) ensure that the bank is able to comply with the conditions and requirements provided for by the legislation of the Republic of Kazakhstan.  

      2. The court has the right to decide on the compulsory reorganization of the bank or the conduct of rehabilitation procedures against the bank only on the basis of the relevant conclusion of the authorized body.  

      A prerequisite for the compulsory reorganization of the bank and rehabilitation procedures is the return by the bank of all deposits held by it to interested parties within one year from the date of the decision on compulsory reorganization.  

      Failure to comply with this condition will result in the forced liquidation of the bank.  

      2-1. If it is possible to restore its solvency and (or) eliminate the identified deficiencies, the bank has the right to file a petition for the application of a rehabilitation procedure to the court in connection with its consideration of the issue of compulsory reorganization of the bank. The bank's rehabilitation plan must be attached to the bank's application.  

      One copy of the bank's application with the attached documents is submitted to the authorized body.  

      2-2. The bank's rehabilitation plan is subject to prior agreement with the authorized body and is approved by the court within ten days from the date of its submission. Changes to the bank's rehabilitation plan are allowed with the consent of the authorized body by a court decision.  

      2-3. The duration of the rehabilitation procedure for the bank should not exceed six months. The terms of the beginning and completion of the rehabilitation procedure are determined by the court. The rehabilitation plan of the bank approved by the court is a document that must be executed by the bank and its officials.  

      2-4. The rehabilitation procedure is carried out by the bank under the supervision of the authorized body. The bank's activities during the rehabilitation procedure are carried out in the usual manner, taking into account the requirements of this article.  

      3. If the court decides to forcibly reorganize the bank (regardless of the grounds for initiating the case), its conduct shall be entrusted to the special manager (authorized for management) of the bank approved by the court, with the exception of the cases provided for in paragraphs 2-1 - 2-4 of this article.  

      The Special Manager (management officers) of the bank is obliged to inform the court and the creditors of the bank on a monthly basis about their activities.  

      4. A third party involved in the bank's reorganization in connection with the bank's merger with another commercial organization or merger is required to provide the special manager (management officer) with the necessary documents (data) substantiating his (their) financial viability and the expediency of the bank's reorganization.  

      5. The compulsory reorganization of the bank is carried out in accordance with the procedure determined by the court and in accordance with the schedule and action plan approved by it.  

      6. The report of the special manager (management officers) of the bank on the completion of the compulsory reorganization of the bank shall be approved by the court.  

      7. Within 5 days after the entry into force of the official document confirming the reorganization of the bank within the framework of the mentioned judicial procedure, the organization that is the legal successor of the bank is obliged to ensure the publication of the necessary information in two republican newspapers.  

      8. Expenses related to the implementation of the compulsory reorganization of the bank are made at the expense of its funds.  

      9. Other issues related to the implementation of the compulsory reorganization of the bank and the conduct of rehabilitation procedures in relation to it are determined by the regulatory legal acts of the authorized body.  

The Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444.

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