LAW OF THE REPUBLIC OF ARMENIA

of July 12, 2008 No. ZR-124

About attraction of bank deposits

Accepted by National Assembly of the Republic of Armenia on June 17, 2008

The purpose of this Law is establishment of single rules concerning conditions and procedure for attraction of deposits of citizens by banks and consumer protection by means of these rules.

Article 1. Subject of regulation of the Law

1. This Law regulates framework of information revealed during attraction of deposits of citizens by banks, procedure and conditions of provision of this information, advertizing of deposit agreements, calculations of deposit interests, and also other legal relationship protecting the rights and lawful duties of investors.

Article 2. The basic concepts used in the Law

1. In this Law the following basic concepts are used:

1) bank deposit (further - contribution) - the bank deposit or money which are available on the bank account;

2) the deposit agreement - the agreement signed for the purpose of attraction of the contribution established by this Law;

3) the investor - the citizen who signed the deposit agreement;

4) bank - whether bank the branch of foreign bank which obtained the license for implementation of banking activity from the Central bank of the Republic of Armenia (further - the Central bank);

5) rates - the payments for services of bank made by the investor for transactions on servicing of contribution, or other payments reducing annual percent yield, except for the payments made as penalty fee;

6) annual percent yield (Annual Percentage Yield or APY) - percent which person will receive owing to the frequency of application of simple annual interest rate during the 365-day period for 1000 dram of contribution and capitalization (compounding) and interest payment. Central Bank the regulatory legal acts can establish procedure of payments of annual percent yield;

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