LAW OF TURKMENISTAN

of August 4, 2011 No. 208-IV

About credit unions

This Law determines legal, organizational and economic basis of creation and functioning of credit unions and is aimed at market development of financial services and entrepreneurship in Turkmenistan.

Chapter 1. GENERAL PROVISIONS

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) credit union - the non-bank credit institute based on personal participation of each participant in its activities and created by merge of their money for the purpose of mutual lending and rendering other financial services to the participants;

2) share - cash amount, brought in the authorized capital of credit union by his participant.

Article 2. Legislation of Turkmenistan on credit unions

The legislation of Turkmenistan on credit unions is based on the Constitution of Turkmenistan and consists of this Law and other regulatory legal acts of Turkmenistan.

Article 3. Basic principles of activities of credit union

Activities of credit union are based on the principles:

1) communities of interests, voluntary equal membership and mutual trust;

2) publicity;

3) personal participation of participants in management of credit union;

4) economic independence.

Article 4. Relations of credit union with state bodies

1. The credit union does not answer for obligations the state and the state does not bear responsibility according to obligations of credit union.

2. Credit union we do not depend on state governing bodies, bodies of the local executive authority in case of adoption of the decisions connected with its current activities by it.

Chapter 2. CREATION, REORGANIZATION, TERMINATION of ACTIVITIES AND LIQUIDATION of CREDIT UNION

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