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The purpose of this Law is to regulate relations in the field of formation and activities of microcredit organizations.
If an international treaty of the Republic of Uzbekistan established other rules than those which are provided for by the legislation of the Republic of Uzbekistan on microcredit organizations then the rules of the international treaty shall be applied.
Microcredit organization is a legal person performing the activity of providing services in the field of micro-credit, micro-loans, micro-leasing and providing other microfinance services in accordance with the present Law.
A microcredit organization is entitled in the prescribed manner to open bank accounts in the territory of the Republic of Uzbekistan.
A microcredit organization is not entitled to directly engage in production, insurance, trade, intermediary and other activities not provided for by this Law.
Microcredit organization may be established by legal and (or) physical persons in any organizational-legal form in accordance with legislation.
Microcredit organizations can not be formed by state bodies, political parties, trade unions, religious organizations, other microcredit organizations and pawnshops.
The constituent documents of a microcredit organization, in addition to the information established by law for certain organizational and legal forms of legal entities, must contain the following information:
on activities for the provision of micro-credit, micro-loans, micro-leasing and providing other microfinance services;
on the sources of formation of funds for the provision of micro-credit, micro-loans, micro-leasing and providing other microfinance services;
The authorized capital of a microcredit organization is formed from cash, as well as other property, not exceeding twenty percent of the size of the authorized capital of this organization.
When forming the authorized capital of a microcredit organization, the use of funds received on credit against bail and other attracted funds is not allowed.
The minimum size of the authorized capital of microcredit organization must be formed only from the monetary funds to the day treatment for obtaining the license.
The company name of the microcredit organization must contain the phrase “microcredit organization” and not be similar to the company name of other microcredit organizations. A legal entity that does not meet the requirements of this Law is not entitled touse the phrase “microcredit organization” in its name.
Microcredit organization must have a seal containing its full company name in the state language and an indication on the place of its location. The printing can be simultaneously specified company name on another language.
A microcredit organization carries out activities to provide microfinance services after obtaining a license.
The decision on granting or reasonable refusal to issue a license of microcredit organization is accepted in over thirty calendar days from the day of treatment with the application of granting of the license and of documents required for obtaining a license.
To obtain a license, a microcredit organization must provide the following documents to the Central Bank of the Republic of Uzbekistan or its territorial departments:
The Central Bank of the Republic of Uzbekistan may refuse to issue a license to a microcredit organization in cases of non-compliance of the submitted documents with the requirements established by law, and the presence of false or distorted information in them.
The decision on the refusal to issue a license of microcredit organization is sent to the applicant in written form with indication of the reasons for the refusal and the period in during which the applicant, by eliminating these causes, may submit the documents for re-consideration. At the same time, the period specified in the decision on refusal to issue a license should be proportionate to the time required to eliminate the deficiencies.
Re-consideration of the documents submitted for the issuance of the license of microcredit organization is carried out in a period not exceeding fifteen days from the date of receipt of the application with all necessary documents. An application submitted after the expiration of the period specified in the decision to refuse to issue a license to a microcredit organization shall be deemed to be re-submitted.
Upon repeated consideration of an application for a license of a microcredit organization, refusal to issue a license on new grounds not previously indicated in the notice of refusal is not allowed.
A decision to refuse to issue a license to a microcredit organization may be appealed to a court in the manner prescribed by law.
violation of a microcredit organization the requirements of legislation on microcredit organizations, including licensing requirements and conditions;
non-fulfillment by a microcredit organization of decisions obliging to eliminate violations identified in its activities.
systematic violation of the requirements of the legislation on microcredit organizations, established economic standards and distortion of reporting data;
delay the implementation of activities for the provision of microfinance services more than in the six months from the date of issue of the license.
The decision about the termination of action of the license can be accepted in other cases in accordance with law.
Re-issuance of a license is carried out in cases of transformation of a microcredit organization, change of its name, location (mailing address) in the manner prescribed by law.
Re-issuance of a license is allowed in the event of a merger of microcredit organizations having a license on the date of state registration of the newly established microcredit organization .
The license shall be canceled in case of establishing the fact of obtaining a license with the use of forged documents.
Revocation of the license does not entail recognition of the void previously committed operations of microcredit organizations.
provide microfinance services with the condition of ensuring the fulfillment of obligations by the borrower or without it in accordance with the contract;
request from the applicant the documents necessary for the provision of microfinance services and the fulfillment of obligations under the contract;
demand early performance of obligations of the borrower in case of delayed payment or use of a target of microcredit is not on purpose;
establish the amount of the penalty (fine) for non-performance or improper performance of obligations by borrowers of a microcredit organization in accordance with the contract;
report in written form to the applicant accurate and complete information about its rights and obligations, in fact those of the consequences of non-fulfillment or improper fulfillment of the obligations of the contract, all costs associated with the provision of microfinance services, but also on the interest rate on the provided microfinance service;
reimburse the borrower for losses incurred as a result of default or improper performance of obligations under the contract;
comply with the rules for financial and cash transactions, as well as established economic standards;
provide representatives of the Central Bank of the Republic of Uzbekistan, sent to conduct the audit, access to documents and other sources of information on the activities of the microcredit organization.
the provision of other types of microfinance services, including the provision of consumer loans, in accordance with the law.
A microcredit organization may provide consulting and information services related to the provision of microloans, microleasing and the provision of other microfinance services.
attract borrowed funds from physical persons, for the exception of the founders (participants, owners);
to charge interest to charge commission fees and penalty (fine), to apply other measures of responsibility for contracts providing microfinance services to the sum component of more than half the size of the loan in a year;
act as a warrantor or guarantor for the obligations of its founders (participants, owners), as well as provide them with other ways to ensure the fulfillment of their obligations.
grants and loans of international financial institutions, non-governmental non-profit organizations, including foreign ones;
The Central Bank of the Republic of Uzbekistan carries out the regulation and supervision of the activities of microcredit organizations with the aim of maintaining the stability of the financial system, to ensure the protection of the interests of borrower sand creditors in accordance with the Law of the Republic of Uzbekistan “On the Central Bank of the Republic of Uzbekistan”.
sets the minimum size of the authorized capital of microcredit organizations, the rules of the financial and cash operations, conducting bookkeeping accounting and reporting, as well as economic standards;
checks the activity of micro-credit organizations and give obligatory for execution instructions about elimination of the revealed in their activities of violations of requirements of legislation on microcredit organizations;
establishes qualification requirements for the head of the executive body of a microcredit organization;
exacts a penalty up to one percent of the established minimum size of the authorized capital in the event of violation of a microcredit organization the requirements of the legislation on micro-credit organizations and the established economic standards;
limits the conduct of certain financial operations of a microcredit organization for a period of up to three months;
In a microcredit organization with a book value of assets of more than one billion soums, an internal audit service is created by the decision of the supreme governing body of the microcredit organization .
The internal audit service is accountable only to the supreme governing body of a microcredit organization. The head and other employees of the internal audit service are appointed by the supreme governing body of the microcredit organization.
Service of internal audit carries out monitoring and evaluation of the work of the executive body and the branches of the microcredit organization by inspections and monitoring of compliance of legislation, constituent and other documents to ensure completeness and reliability of the reflection data in the accounting accounting and reporting, established rules and procedures for the implementation of financial and business operations, and also asset security.
The internal audit service carries out its activities in accordance with the procedure determined by the Central Bank of the Republic of Uzbekistan.
A microcredit organization is entitled to create branches in the manner established by the Central Bank of the Republic of Uzbekistan.
Branch of microcredit organization carries out its activity on the basis of a license issued to a microcredit organization.
Microcredit organizations guarantee the confidentiality of information on financial transactions and accounts of their borrowers and lenders. Members of management bodies, employees of the internal audit service and the executive body of a microcredit organization are required to keep secret on the operations and accounts of the microcredit organization, its borrowers, as well as on operations with creditors.
For disclosure of confidential information, persons to whom this information was entrusted or became known in connection with the performance of their official duties, are liable in the prescribed manner.
Reorganization and liquidation of a microcredit organization are carried out in accordance with the law.
Disputes in the field of creation and activities of microcredit organizations are resolved in the manner prescribed by law.
Persons guilty of violating the law on microcredit organizations are liable in the prescribed manner.