LAW OF THE REPUBLIC OF KAZAKHSTAN

of June 30, 2025 No. 199-VIII ZRK

About funds of the target capital and endaument-funds (the target capitals)

This Law governs the public relations arising during creation, management and liquidation of funds of the target capital, forming, replenishment, disbandment of endaument-funds (the target capitals) and use of their investment revenues, trust management of assets of endaument-funds (the target capitals).

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) diversification - placement of assets of endaument-fund (the target capital) in different financial instruments for the purpose of decrease in risk of reduction of their cost;

2) managing company (fiduciary) - the professional participant of the security market performing activities for management of investment portfolio based on the license of authorized body on regulation, control and supervision of the financial market and the financial organizations or the fund of the target capital performing activities for asset management of endaument-funds (the target capitals) independently;

3) donations - the money, and also other property contributed to fund of the target capital or endaument-fund (the target capital) for rendering the charitable help;

4) the investment declaration - the document providing the list of investment objects, the purposes, strategy, fiducial obligations, conditions and restrictions of investing activities on assets of endaument-funds (the target capitals), conditions of hedging and diversification;

5) investment revenue - the increments of assets of endaument-fund (the target capital) in terms of money received as a result of their investment;

6) authorized body in the field of charity - the central executive body performing management in the field of charity;

7) authorized body on regulation, control and supervision of the financial market and the financial organizations - the state body performing state regulation, control and supervision of the financial market and the financial organizations;

8) fund of the target capital - the non-profit organization created in form of business of fund, performing activities in the social sphere, for asset management of endaument-fund (the target capital) for providing investment revenue and financing of the objects of charity provided by the charitable program of endaument-fund (the target capital), according to the procedure, provided by this Law;

9) affiliates of fund of the target capital - the physical persons or legal entities (except for the state bodies performing control and supervising functions within the powers conferred to them) having in the relation to fund of the target capital opportunity directly and (or) indirectly to determine decisions and (or) to exert impact on accepted with each other (one of persons) decisions, including owing to the concluded bargain;

10) the agreement of purpose-oriented deposit - the agreement according to which one party (investor) transfers to ownership use and the order is termless or for the term of at least ten years endaument (purpose-oriented deposit) to other party (fund of the target capital) for receipt of investment revenue with ensuring safety and integrity of endaument (purpose-oriented deposit) and financing of the objects of charity provided by the charitable program of endaument-fund (the target capital);

11) the beneficiary - person receiving the charitable help from fund of the target capital or endaument-fund (the target capital);

12) the investor - physical person or legal entity which is agreement party of purpose-oriented deposit;

13) the trust management agreement - the agreement on management of the investment portfolio constituting assets of endaument-fund (the target capital) signed by managing company (fiduciary) with fund of the target capital about transfer to trust management of assets of endaument-funds (the target capitals) according to the requirements established by the Civil code of the Republic of Kazakhstan and this Law;

14) net assets value - the monetary value of asset cost of endaument-funds (the target capitals) determined as difference between the cost of all assets of endaument-funds (the target capitals) and their obligations or accrued expenses which are subject to payment for the asset account of endaument-funds (the target capitals);

15) fiducial obligations - obligations on implementation of activities for asset management of endaument-funds (the target capitals) and their investment it is reasonable, fair and fair, accepted by managing company (fiduciary) according to this Law;

16) assets of endaument-fund (the target capital) - set of the assets belonging to fund of the target capital on the property rights or agreements of purpose-oriented deposit;

17) the charitable program of endaument-fund (the target capital) - the system of measures including terms and procedure of the charitable help financed by investment revenue;

18) endaument-fund (the target capital) - property of fund of the target capital which is created and replenished at the expense of endaument (purpose-oriented deposits) and investment revenue, and also own fund of the target capital and is used for financing of the objects of charity provided by the charitable program of endaument-fund (the target capital);

19) endaument (purpose-oriented deposit) - the property offered or transferred for ownership, use and the order with ensuring safety and integrity in accordance with the terms of the agreement (agreements) of donation, donation or purpose-oriented deposit, and also the will.

Article 2. Coverage of this Law

Features of regulation of the relations connected with activities of funds of the target capital and endaument-funds (the target capitals) are established by this Law and other laws of the Republic of Kazakhstan.

Operation of this Law does not extend to activities for forming, replenishment and use of endaument-funds (the target capitals) of "Nazarbaev Universitet", "Nazarbayev Intellectual schools" and "Nazarbayev of Fond".

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