LAW OF THE AZERBAIJAN REPUBLIC

of December 29, 2006 No. 226-IIIQ

About deposit insurance

This law determines rules of creation and action of system of collective compulsory deposit insurance of physical persons, and also payments of compensations for deposits in the banks performing activities in the Azerbaijan Republic. The relations in the field of deposit insurance in the Alyatsky free economic zone are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

Section I. General provisions

Article 1. Purposes of creation of deposit insurance system

The purposes of creation of deposit insurance system are prevention of risk of loss of the money accepted on storage at physical persons in case of loss by banks and local branches of foreign banks of the solvency, ensuring stability and development of financial and bank system.

Article 2. Basic concepts

2.1. The concepts used in this law express the following values:

2.1.1. Contribution - except for the means accepted by bank on release of electronic money, the money accepted by bank in national and foreign currency including belonging to physical persons of means enlisted into the deposit account of the notary including the added percent which it shall pay back based on the relevant legislation or the agreement;

2.1.2. The protected contribution - the contribution compensated to the protected investor by Fund of deposit insurance (further - Fund) in case of loss occurrence. The following deposits do not belong to protected:

2.1.2.1. it is excluded according to the Law of the Azerbaijan Republic of 19.01.2016 No. 100-VQD

2.1.2.2. the deposits attracted with the branches opened by bank outside the territory of the Azerbaijan Republic;

2.1.2.3. the deposits as a result of suspicious transactions in connection with legalization of the property received in the criminal way and financing of terrorism established in the procedure corresponding to the legislation;

2.1.2.4. deposits which emergence as a result of crime execution is established by the judgment;

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