This Instruction establishes normative values, technique of calculations of the prudential standard rates obligatory to observance by the mortgage organizations, affiliated organizations of national managing holding in the field of agro-industrial complex (further - the organizations), and also forms and terms of submission of the reporting on their accomplishment to Committee on control and supervision of the financial market and the financial organizations of National Bank of the Republic of Kazakhstan (further - authorized body). Normative values are expressed by number with three signs after comma.

1. Minimum size authorized and equity of the organization

1. The minimum size of the authorized capital of the organization is established by National Bank of the Republic of Kazakhstan.

The organization can redeem from shareholders own shares provided that such redemption will not lead to violation of any of prudential standard rates and other regulations, obligatory to observance, and limits set by National Bank of the Republic of Kazakhstan, and also other requirements of the legislation of the Republic of Kazakhstan.

2. The minimum size of equity of the organization, constitutes:

since April 1, 2008 - 300 (three hundred) million tenges;

since December 31, 2008 - 800 (eight hundred) million tenges.

2. Coefficient of sufficiency of equity

4. Subordinated debt of the organization - the unsecured obligation of the organization corresponding to the following conditions:

1) is not contribution or the obligation to bearer;

2) is not mortgage providing according to requirements of the organization or persons, affiliirovanny with it;

3) in case of liquidation of the organization it is satisfied in the last queue (before distribution of the remained property between shareholders);

4) it can be extinguished (fully or partially) by the organization, including ahead of schedule only at the initiative of the organization provided that such repayment according to the conclusion of authorized body cannot lead afterwards to non-compliance by the organization with the values of prudential standard rates established by this Instruction.

The subordinated debt of the organization included in equity - the subordinated debt having attraction term more than five years prior to repayment.

Bonds are recognized subordinated debt of the organization and join in equity of the organization only based on the report on results of placement of the bond issue approved in the procedure established by the legislation of the Republic of Kazakhstan by authorized body.

The subordinated debt of the organization joins in calculation of equity of the organization:

during term more than five years prior to debt repayment - in full amount of debt,

within five years which remained prior to debt repayment:

The 1st year - 100 percent of the amount of subordinated debt,

The 2nd year - 80 percent of the amount of subordinated debt,

3rd year - 60 percent of the amount of subordinated debt,

The 4th year - 40 percent of the amount of subordinated debt,

The 5th year - 20 percent of the amount of subordinated debt.

Subordinated debt of the organization the loan of the organization attracted from the European Bank for Reconstruction and Development or Asian Development Bank or the International Finance Corporation, conforming to requirements of this Item, except for the subitem 3) of this Item is also recognized if the agreement provides opportunity early (complete or partial) repayments of loan at the initiative of the borrower provided that such repayment according to the conclusion of authorized body cannot lead afterwards to deterioration in financial position of the organization and violation of requirements of the legislation of the Republic of Kazakhstan.

5. Sufficiency of equity of the organization is characterized by the following coefficients:

1) relation of the capital of the first level to the size of assets of the organization (k 1);

2) the relation of the capital of the first level to the amount of the assets, contingent and possible obligations weighed on the degree of credit risk reduced by the amount of general reserves (provisions) which are not included in calculation of equity (k1-2);

3) equity relation to the amount:

assets, contingent and possible obligations weighed on the degree of credit risk reduced by the amount of general reserves (provisions) which are not included in calculation of equity;

operational risk (k1-3).

The operational risk is calculated as the work of coefficient of the reduction equal to 8,3, on the work of average size of annual gross income for the expired last three years on coefficient of the operational risk equal to 0,12.

The average size of annual gross income for the expired last three years is calculated as the relation of the amount of annual gross incomes for the expired last three years, in each of which the organization gained net income on the number of years in which the organization gained net income. For the newly created organizations the operational risk is calculated after financial year, and the average size of annual gross income is calculated proceeding from the number of the expired years.

The annual gross income of the organization is determined as:

the amount of net annual income to the taxation, the annual amount of assignments for forming of provisions (reserves) and the size of the incurred extraordinary expenses;

minus the extraordinary income of the organization.

6. Values of coefficients of sufficiency of equity of the organization:

k1 - is at least 0,06;

k1-2 - is at least 0,06;

k1-3 - is at least 0,12.

Calculation of assets, the contingent and possible obligations weighed on degree of credit risk of investments is carried out according to Appendix 1 to this Instruction.

The contingent and possible obligations weighed on degree of credit risk of investments are determined as the work of the amount of the contingent and possible obligations expected according to Appendix 2 to this Instruction risk degree, the corresponding category of the borrower specified in Appendix 1 to this Instruction on which the organization bears credit risks.

Assets for the purposes of calculation of coefficient k1 and assets, contingent and possible obligations weighed on the degrees of credit risk taken into consideration of coefficients of k1-2 and k1-3 shall join less the reserves created according to international accounting standards.

2-1. Features of calculation of coefficient of sufficiency of equity in case of
securitizations

6-1. The organization-originator (further - originator) applies the framework approach of securitization to calculation of equity according to the Framework approach Basel II: International convergence of measurement of the capital and standards of the capital: new approaches (June, 2006) in case of which the securitized assets are excluded from calculation of the assets of originator weighed on degree of credit risk (further - the framework approach of securitization) if the substantial credit risk as a result of implementation of the transaction of securitization is transferred to the third parties.

The organizations participating in transactions of securitization and not being originator apply the framework approach of securitization according to this Instruction when calculating of the credit risks of the securitization positions held by them weighed on degree in such transaction.

6-2. For application of the framework approach of securitization by the organizations when calculating equity the originator submits the following documents to authorized body:

1) the questionnaire according to appendix 2-1 to this Instruction;

2) the document determining persons from board of the organizations responsible for determination of feasibility of application of the framework approach of securitization;

3) the copy of the prospectus of issue of securities (or the bonded program) for the cross-border transactions of securitization with foreign special finance companies performed according to the legislation of foreign state or the copy of the certificate on state registration of the bonded program (or bond issue within the bonded program) for the transactions of securitization performed according to the Law of the Republic of Kazakhstan of February 20, 2006 "About securitization";

4) data on coefficient of sufficiency of equity taking into account securitization and without securitization according to appendix 2-2 to this Instruction.

6-3. In case of submission of documents in foreign language, its transfer on state and (or) Russian is represented.

6-4. The submitted documents are considered by authorized body within fifteen calendar days from the date of their obtaining.

6-5. After consideration of documents, stipulated in Item 6-2 these Instructions, the authorized body makes the decision on issue or on refusal in confirmation on application of the framework approach of securitization by the organizations when calculating equity and in writing notifies on it originator.

Confirmation on application of the framework approach of securitization by the organizations when calculating equity is not issued in case:

1) non-presentations of complete document package according to Item 6-2 of this Instruction;

2) discrepancies to requirements of Items 6-7, 6-9 of this Instruction.

6-6. For the purpose of determination of materiality of transfer of risk the originator performs:

1) calculation of coefficient of sufficiency of equity of k1-3 without securitization;

2) calculation of coefficient of sufficiency of equity of k1-3 taking into account securitization.

6-8. Transfer of risk does not happen if value of coefficient of sufficiency of equity k1-3 taking into account securitization is less than value of coefficient of sufficiency of equity k1-3 without securitization. In this case the originator does not apply the framework approach of securitization when calculating equity and calculates the weighed sizes of the corresponding risks without securitization. At the same time the originator does not subtract the securitization positions held by it from equity and (or) does not weigh such line items on degree of credit risk of assets when calculating coefficient of sufficiency of equity.

6-9. Originator excludes the securitized assets at the rate of the credit risks of assets weighed on degree in case of accomplishment of the following conditions:

1) the substantial credit risk connected with the securitized assets was translated to the third parties;

2) documents according to the transaction of securitization reflect economic essence of the transaction;

3) the special finance company bears all risks connected with possible nonpayment by debtors of payments on the securitized assets including in case of bankruptcy (insolvency) of originator;

4) except as specified, provided by this Instruction, the originator shall not:

own directly or indirectly shares in the authorized capital or voting shares in special finance company;

appoint or elect most of board members or board of special finance company;

determine decisions of special finance company owing to the agreement or otherwise;

assume any obligations according to the redemption of the securitized assets from special finance company except those which are provided in the relevant agreements or documents relating to the transaction of securitization;

assume liabilities on deduction of any risks concerning the securitized assets except those which are provided in the relevant agreements or documents relating to the transaction of securitization;

after transfer of the securitized assets of special finance company to incur the expenses connected with securitization and activities of special finance company;

provide indirect support of special finance company. Provision of indirect support by persons connected with originator the special relations is not allowed.

Indirect support arises in case the originator, and also the faces tied with originator the special relations gives to special finance company help according to requirements of cash nature (further - credit providing) or other support in cases when such support is not provided by the relevant agreements or documents relating to the transaction of securitization.

In case of detection of the facts of rendering by the originator or faces tied with originator the special relations of indirect support of special finance company when making the subsequent transactions of securitization the originator loses opportunity to reduce requirements to the capital on the securitized assets;

5) the securities issued by special finance company do not represent payment obligations of originator;

6) the party to which risks are transferred is the special finance company founded for implementation of one or several transactions of securitization;

7) if the option of the return redemption is provided in the transaction of securitization, then all following conditions are satisfied:

the option of the return redemption is implemented only at the discretion of originator;

the option of the return redemption can be realized only provided that the general amount of outstanding primary obligations on the securitized assets or the general amount of primary obligation according to issued securities reaches value of 10 percent and below from their initial size;

the option of the return redemption is not structured for the purpose of improvement of credit quality of line items of securitization;

8) the originator has the right to redeem the securitized assets or to replace them in bullet with other assets in case of observance of the following conditions:

the securitized assets are redeemed at the cost which is not exceeding them fair market value;

the redeemed securitized assets do not represent obligations according to which the default of the relevant bound party took place, except for of assets, redeemed on fair market value;

the replaced securitized assets shall have the corresponding (similar) classification category.

Originator has the right to render services in servicing of the securitized assets, and also to provide liquidity tools concerning the securitized assets provided that these tools meet the requirements established in Item 6-15 of this Instruction.

6-10. On condition of materiality of transfer of risk the originator also excludes the securitized assets at the rate of the credit risks of assets weighed on degree when calculating coefficients of sufficiency of equity of banking conglomerate.

6-11. Are deductible from equity the securitization positions held by the organization and having debt rating are lower "VV-" of the Standard & Poor's agency or the rating of similar level of one of other rating agencies or rating assessment below "kzBB-" on national scale of the Standard & Poor's agency or the rating of similar level on national scale of one of other rating agencies, or not having the corresponding rating assessment, except for those line items which correspond to the conditions listed in Item 6-13 of this Instruction.

Deductible line items decrease by the amount of the special reserves (provisions) created on them.

6-12. Line items of securitization are risks in the transaction of securitization which represent balance and off-balance sheet assets, contingent and possible obligations arising at the organization in connection with the transaction of securitization. The corresponding risk degree (weight coefficient of risk) based on credit quality of line item which is determined based on credit rating according to this Instruction is appropriated to line item of securitization. Treat such line items:

the loans granted by originator of special finance company;

conditional and possible requirements and obligations of originator for special finance company;

acquisition of securities of special finance company by the organization;

the provided credit providing (credit enhancements);

liquidity tools;

interest or currency swaps;

credit derivatives;

provision of means for reserve accounts (the account of cash cover) and others.

At the same time:

1) with risks on different tranches in the transaction of securitization, the risk on each tranche is weighed as separate line item of securitization;

2) the faces providing credit providing on securitization line items are considered as the parties holding securitization positions;

3) the risks connected with line items on the derivative financial instruments concluded for the purpose of hedging of risks of change of rate of remuneration and currency rates are weighed as separate line items in the transaction of securitization;

4) the size of risk of position is equal in the transaction of the securitization held on balance to the book value;

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