Approved by Board decision of National Bank of the Azerbaijan Republic of December 29, 2001 No. 26

Rules of making of transactions with persons having participation in banks

1. General provisions

1.1. These rules are prepared according to the laws of the Azerbaijan Republic "About National Bank of the Azerbaijan Republic" and "About banks and banking activity in the Azerbaijan Republic" and pursue the purpose decrease in the credit risks arising at persons having participation in banks from their debts to bank when making of the republic by all commercial (joint-stock and commercial) banks and branches of foreign banks (further - "banks") transactions with such persons.

1.2. The purpose of settlement of such debts is creation to receivers of banking services of opportunity to use these services on an equal basis with persons having participation in bank i.e. irrespective of whether they hold position in bank or whether have the right to control its activities or to influence it, and increase at the population of belief in bank system.

The concepts used in these rules:

1.3. Persons having participation in bank:

a) heads (any administrator of bank);

b) all bank employees;

c) any physical person or legal entity which is the large founder of bank;

w) any physical person consisting with heads in the relations of relationship of the first degree or related business interests;

e) any legal entity who is the large founder of bank.

1.4. Person is recognized acting on behalf of person having participation in bank if acts on specifying of the last on the basis of the of the relations which arose between them or if the transaction with it brings to person having participation in bank, benefit. For example, person is considered acting on behalf of the last in the following specific circumstances:

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