Federal Law No. 40-FZ of february 25, 1999 on insolvency (bankruptcy) of credit institutions

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FEDERAL LAW NO. 40-FZ OF FEBRUARY 25, 1999 ON INSOLVENCY (BANKRUPTCY) OF CREDIT INSTITUTIONS
(with the Amendments and Additions of January 2, 2000, June 19,
August 7, 2001, March 21, 2002, December 8, 2003, July 28,
August 20, 2004)

Approved by the State Duma on September 18, 1998
Approved by the Federation Council on October 14, 1998

Chapter I. General Provisions

Article 1. Relations Governed by the Present Federal Law
1. The present Federal Law shall establish measures to prevent insolvency (bankruptcy) of credit institutions as well as the peculiarities of grounds and procedures for declaring credit institutions insolvent (bankrupt) and their liquidation through competitive proceedings.
2. Relations associated with measures involved in the prevention of insolvency (bankruptcy) of credit institutions which are not governed by the present Federal Law shall be regulated by other federal laws and regulatory acts of the Central Bank of the Russian Federation (hereafter referred to as the Bank of Russia).
3. Relations associated with insolvency (bankruptcy) of credit institutions which are not governed by the present Federal Law shall be regulated by the Federal Law on Insolvency (Bankruptcy) and in cases specified by the present Federal Law, by regulatory acts of the Bank of Russia

Article 2. Insolvency (Bankruptcy) of a Credit Institution

1. Insolvency (bankruptcy) of a credit institution is deemed to be its inability as recognized by an Arbitration Court to satisfy in full creditors' claims with respect to monetary obligations and/or to perform its obligation to make mandatory payments (hereinafter referred to as bankruptcy).
For the purposes of this Federal Law, a credit organisation's obligation to make mandatory payments shall mean the duty of the credit organisation as an independent taxpayer to make mandatory payments to appropriate budgets that are determined in compliance with the Federal Law on Insolvency (Bankruptcy), as well as the duty of the credit organisation to follow instructions (orders) to transfer from its clients' accounts mandatory payments to the appropriate budgets.
2. A credit institution shall be deemed unable to satisfy creditors' claims with respect to monetary obligations and/or to meet an obligation to make mandatory payments if it fails to meet the corresponding obligations within fourteen days from their due date and/or if the value of the organisation's property (assets) after its banking transaction license has been revoked is insufficient for the credit organisation to discharge its liabilities owing creditors and (or) its duty to make mandatory payments.

Article 3. Measures on Prevention of Insolvency (Bankruptcy) of Credit Institutions

1. In keeping with the present Federal Law, prior to the date of withdrawing the licence for making bank operations the following measures for preventing credit organisations' bankruptcy shall be taken:
1) financial rehabilitation of the credit organisation. For the purposes of this Federal Law, the financial rehabilitation of a credit organisation shall mean taking the extrajudicial measures provided for by Article 7 of this Federal Law;
2) appointment of the provisional administration to manage the credit organisation (hereafter referred to as the provisional administration), except for the case of appointing the provisional administration in connection with the withdrawal of the licence for making banking operations;
3) reorganisation of the credit organisation.
2. Credit institution bankruptcy prevention measures shall be implemented subject to the existence of the grounds stipulated by Article 4 of the present Federal Law.
If the aforementioned grounds arise, the credit institution, its founders (participants) must take the necessary and timely steps to achieve financial rehabilitation and/or reorganisation of the credit institution.

If the grounds provided for by Article 4 of this Federal Law arise, the Bank of Russia in compliance with the procedure established by normative acts of the Bank of Russia shall be entitled to demand that the credit organisation takes measures to achieve its financial rehabilitation and/or reorganisation and shall have the right to institute a provisional administration.
The demand to take measures aimed at financial rehabilitation of a credit organisation shall not be taken, if the Bank of Russia is obliged to withdraw the credit organisation's licence for making bank operations for one or several reasons provided for by Part Two of Article 20 of the Federal Law on Banks and Banking (in the wording of Federal Law No. 17-FZ of February 3, 1996 (hereinafter referred to as the Federal Law on Banks and Banking).

Article 4. Grounds for Performing Measures on the Prevention of Insolvency (Bankruptcy) of Credit Institutions

Unless otherwise follows from the present Federal Law the credit institution bankruptcy prevention measures set out in Article 3 of the present Federal Law shall be carried out if the credit institution:
has repeatedly failed over the last six months to meet claims of creditors (creditor) with respect to monetary obligations (obligation) and/or fails to meet its obligation to make mandatory payments within three days from their due date owing to the non-availability or lack of funds in correspondent accounts of the credit institution;
fails to meet claims of creditors (creditor) with respect to monetary obligations (obligation) and/or fails to meet its obligation to make mandatory payments within a period of three days from their satisfaction date and/or their discharge date due to the non-availability of or lack of funds in correspondent accounts of the credit institution;
was not able to prevent a more than 20 per cent absolute reduction value with respect to its own resources (capital) compared to its maximal amount achieved over the last 12 months and at the same time violates a mandatory standard established by the Bank of Russia;
violates the standard of sufficiency of own resources (capital) as established by the Bank of Russia;
has been violating by more than 10 per cent over the last month the standard of current liquidity for a credit institution as established by the Bank of Russia.
permits a decrease in the amount of own resources (capital) according to the results of the accounting month below the authorised capital amount determined by the credit organisation's constituent documents registered in the manner established by federal laws and by the regulatory acts of the Bank of Russia adopted pursuant to such laws. If the said ground arises within the first two years as of the date of issuing the licence for conducting banking operations, measures aimed at preventing bankruptcy shall not apply to the credit organisation.

Article 4.1. Responsibilities of Credit Organisations When There Are Reasons for Taking Measures Aimed at Preventing Bankruptcy

1. As of the date when the grounds provided for by Article 4 of this Federal Law arise and pending the date of their elimination, a credit organisation shall be obliged to notify the Bank of Russia on the following:
1) on holding general meetings of founders (stake-holders) of the credit organisation, as well as meetings of the board of directors (supervisory board) in the procedure provided for by the laws of the Russian Federation for notifying founders (stake-holders) and members of the board of directors (supervisory board) of the credit organisations;
2) on committing transactions (several interconnected transactions):
with persons concerned or affiliated in respect of the credit organisation determinable in compliance with federal laws, or with the persons in respect of which the credit organisation under the federal law is a concerned person, or with the persons in respect of which the credit organisation is in the position to exert directly or indirectly (through a third person) an essential influence upon the decisions rendered by their managerial bodies, or with the persons who are in the position to exert directly or indirectly (through a third person) an essential influence upon the decisions rendered by managerial bodies of the credit organisation;
connected with the disposal of the credit organisation's property whose cost amounts to over 1 per cent of the balance value of the credit organisation's property determined on the basis of its business accounting reports as on the last reporting date or exceeds 15 million roubles, if 1 per cent of the property's balance value amounts to less that 15 million roubles, including those connected with the disposal of immovable property, obtaining and granting of credits and loans, discounting, making operations with securities (including the issue of own securities), granting guarantees and sureties, assignment of rights (claims), acceptance and acquittal of debt, innovation, indemnity, as well as with the establishment of trust management;
connected with the acquisition of stocks (shares) in the authorised capital of economic companies or with the participation in the creation (establishment) of other legal entities.
2. A notice on making the transactions specified in Item 1 of this Article shall be directed by a credit organisation to the Bank of Russia within a five-day term as of the date of committing a transaction.
A notice on holding a general meeting of founders (stake-holders) of a credit organisation or a sitting of the board of directors (supervisory board) thereof shall be directed to the Bank of Russia at the latest in 5 days as of the date of holding such meeting or sitting, except for cases when the reasons provided for by Article 4 of this Federal Law arose within the time period established by this Item for notifying. In this instance, a credit organisation shall notify on holding a general meeting of founders (stake-holders) of the credit organisation or a sitting of the board of directors (supervisory board) thereof at the latest on the day following the date when the reasons provided for by Article 4 of this Federal Law arose.
3. A credit organisation that has the reasons provided for by Article 4 of this Federal Law and taking measures aimed at the financial rehabilitation without directing by the Bank of Russia the demand provided for by Article 12 of this federal Law, shall terminate to notify the Bank of Russia on the events specified in Item 1 of this Article, as of the date of eliminating the reasons provided for by Article 4 of this Federal Law.
4. The Bank of Russia shall be entitled to send an observer (observers) for participation in a general meeting of founders (stakeholders) of a credit organisation in sittings of the board of directors (supervisory board thereof).
An observer (observers) shall be admitted to the participation in a general meeting of founders (stake-holders) of a credit organisation, in a sitting of the board of directors (supervisory board) thereof on the basis of the decision of the Bank of Russia.
An observer (observers) shall participate in a general meeting of the founders (stake-holders) of a credit organisation, sittings of the board of directors (supervisory board) thereof without the right of vote, shall familiarise himself with the records and other materials concerning such meeting or sitting.

Article 5. Procedures in a Credit Organisation's Bankruptcy Case

1. Competitive procedure shall be used by an arbitration court when trying a credit organisation's bankruptcy case (hereinafter also referred to as bankruptcy case).
2. Observation, financial rehabilitation, external management and amicable agreement provided for by the Federal Law on Insolvency (Bankruptcy) shall not be applicable when a credit organisation goes bankrupt.

Article 6. Abolished.

Chapter II. Financial Rehabilitation of Credit Institutions

Article 7. Measures of Financial Rehabilitation of Credit Institutions

The following measures may be undertaken to achieve financial rehabilitation of a credit institution:
rendering of financial assistance to the credit institution by its founders (participants) and other persons;
change of the structure of assets and the structure of liabilities of the credit institution;
bringing into line the amount of authorised capital of the credit organisation and its own resources (capital);
change of the credit institution's organisational structure;
other measures undertaken in keeping with federal statutes.

Article 8. Rendering of Financial Assistance to a Credit Institution by its Founders (Participants) and Other Persons

1. A credit institution may receive financial assistance from its founders (participants) and other persons in the following forms:
1) placement of cash on deposit at the credit institution with a repayment period of no less than six months and at interest rate not exceeding the refinancing interest rate (discount rate) of the Bank of Russia;
2) extension of sureties (bank guarantees) for credits for the credit institution;
3) extension of a deferral and/or installment plan on the payment;
4) transfer of the credit institution's debt with the consent of its creditors;
5) waiving of the distribution of the credit institution's profit in the form of dividends and allocating it to implement financial rehabilitation measures of the credit institution;
6) making an additional contribution to the authorized capital of the credit institution;
7) remitting the credit institution's debt;
8) novations, as well as other forms which will help eliminate causes which necessitated the implementation of measures to achieve financial rehabilitation of the credit institution in question.
2. Monetary resources held in bank accounts and on deposits of the credit institution may be used by its creditors to increase the authorized capital of the credit institution in the manner laid down by the Bank of Russia.
3. The credit institution in question and the person rendering the financial assistance shall take the decision as to forms and conditions of the financial assistance to be extended to the credit institution.

Article 9. Change of the Structure of Assets and the Structure of Liabilities of a Credit Institution

1. Change of the structure of assets and the structure of liabilities of a credit institution may include the following measures:
1) improving the of quality of its credit portfolio, including replacement of non-liquid assets with liquid assets;
2) harmonization of the structure of assets per their terms with the terms of liabilities that secure their performance;
3) reduction of outlays of the credit institution, including those for servicing the credit institution's debt, and its management expenses;
4) sale of assets yielding no profits, and of assets the sale of which will not impair the credit institution's ability to perform banking operations;
5) other measures to change the structure of its assets.
2. Change of the structure of the credit institution's liabilities may include the following measures:
1) increasing its own resources (capital);
2) reducing the amount and/or ratio of current and short-term liabilities in the overall liabilities structure;
3) increasing the ratio of medium-term and long-term liabilities in the overall liabilities structure;
4) other measures to change the structure of its liabilities.
3. Excluded.
Article 9.1. Bringing into Line the Amount of Authorised Capital of the Credit Organisation and the Amount of Its Own Resources (Capital)
1. If the amount of own resources (capital) of a credit organisation according to the results of the accounting month turns out to be below the amount of its authorised capital the credit organisation shall bring into line the amount of authorised capital and the amount of own resources (capital).
2. The credit organisation shall make a decision to liquidate itself if the amount of its own resources (capital) at the close of the second and any subsequent financial year is below the minimum amount of authorised capital established by the Federal Law on Joint-Stock Companies or the Federal Law on Limited Liability Companies.

In the event of a credit organisation's failure to render within three months as of the finishing date of a financial year a decision on its liquidation, the Bank of Russia shall be obliged to apply to a arbitration court for the liquidation of this organisation.
3. If on the expiry of three months as of the date when the reasons provided for by Item 2 of this Article arise the founders (stake-holders) of a credit organisation who are entitled to give instructions obligatory for execution or are in the position to determine its actions in any other way did not decide on its liquidation, a court of law or an arbitration court on the basis of the claim raised by the Bank of Russia or by the bankruptcy commissioner in the event of bankruptcy of credit organisations (hereinafter also referred to as the bankruptcy commissioner) or by a creditor of the said credit organisation may impose secondary responsibility in respect of the credit organisation's obligations arising after the said date in the instances when the property of the credit organisation is insufficient for satisfying creditors' claims.

Article 10. Change of the Credit Institution's Organizational Structure

Change of the credit institution's organisational structure may be achieved through:
changes in the composition and number of staff members of the credit institution;
changes in the structure, scaling down and elimination of isolated and other structural divisions of the credit institution, as well as in other ways which can eliminate the reasons which necessitated the implementation of measures to achieve financial rehabilitation of the credit institution.

Article 11. Request of the Sole Executive Body of the Credit Institution to Implement Measures to Prevent Bankruptcy of the Credit Institution

1. If circumstances occur that are specified in Article 4 of the present Federal Law, within 10 days of their occurrence the sole executive body of the credit institution (hereafter referred to as head of the credit institution) shall be obliged to present to the board of directors (supervisory council) of the credit institution, his requests to implement measures for financial rehabilitation of the credit institution or his request to reorganize the credit institution, provided the causes of the aforementioned circumstances can not be eliminated by the executive bodies of the credit institution.
2. A request of the head of a credit institution to implement measures of financial rehabilitation of the credit institution or his request to reorganize the credit institution shall contain recommendations on the forms, type and time framework for their implementation.
3. The board of directors (supervisory board) to which, in keeping with Item 1 of the present Article, the request to implement measures of financial rehabilitation of the credit institution or the request to reorganize the credit institution is forwarded is to take a decision on such a request within 10 days from the time of its dispatch and inform the Bank of Russia on their decision.
4. The head of a credit organisation shall be obligated within three days as of the date of the expiry of the time period established by Item 3 of this Article to file an application with the Bank of Russia for taking measures to prevent bankruptcy of the credit organisation, if the board of directors (supervisory board) of the credit organisation has not rendered a decision on the basis of the application to take measures aimed at preventing the credit organisation's bankruptcy within the time period established by Item 3 of this Article, or has refused to decide on taking measures aimed at preventing bankruptcy, or has refused to call a general meeting of the credit organisation's founders (stakeholders) where the necessity of holding such meeting follows from the essence of the measures aimed at preventing bankruptcy of the credit organisation or if founders (stake-holders) of the credit organisation have not decided on taking measures aimed at preventing bankruptcy where the necessity of such decision follows from the essence of measures aimed at preventing bankruptcy of the credit organisation.

Article 12. Taking Measures of Financial Rehabilitation of a Credit Organisation on Demand of the Bank of Russia

1. In the instances provided for by Article 4 of this Federal Law or Article 74 of Federal Law No. 86-FZ of July 10, 2002 on the Central Bank of the Russian Federation (Bank of Russia), the Bank of Russia shall have the right to forward to a credit institution its demand to take measures aimed at its financial rehabilitation. Such demand must contain a list of reasons constituting the grounds for such a demand and also recommendations concerning the forms and time frame for taking measures of financial rehabilitation of the credit institution.
The head of the credit organisation within five days as of the date of receiving the demand of the Bank of Russia for taking measures aimed at financial rehabilitation of a credit organisation shall be obliged to file with the board of directors (supervisory board) of the credit organisation an application for taking measures aimed at the financial rehabilitation of the credit organisation and (or) an application for reorganisation thereof.
2. The Bank of Russia shall be obliged to serve a credit organisation with a demand for bringing into line its authorised capital amount and its own resources (capital) amount if according to the credit organisation's reports and/or according to a check conducted by the Bank of Russia its own resources (capital) have been discovered to be below its authorised capital amount.
If within the last 12 months preceding the time when under the present Article the Bank of Russia must serve the credit organisation with a demand for bringing into line its authorised capital amount and its own resources (capital) amount, the Bank of Russia has changed the methodology for calculation of a credit organisation's own resources (capital), for the purposes of this Article the methodology whereby the credit organisation's own resources (capital) amount is greater shall be applicable.
If it is impossible to increase the amount of a credit organisation's own resources (capital) to make it equal to the authorised capital amount, the credit organisation within 45 days after the receipt of the said demand from the Bank of Russia shall be obliged to reduce the amount of authorised capital to an amount not exceeding the amount of its own resources (capital) and amend its constituent documents accordingly.
The creditors of the credit organisation shall not be entitled to claim a termination or early discharge of its liabilities because of the decrease in the amount of its authorised capital accomplished in keeping with the present Article. In this case, the provisions of the legislation of the Russian Federation under which the creditors must be notified without fail of their right to claim a termination or early discharge of the credit organisation's liabilities and reimbursement of losses incurred in connection therewith shall not be applicable.
3. From the time of receiving the Bank of Russia's demand for taking financial rehabilitation measures in respect of a credit organisation containing the reasons for directing it and pending the date of receipt of the relevant permission from the Bank of Russia the credit organisation shall not be entitled to take decisions as to profit distribution among its founders (stake-holders), the disbursement (announcement) of dividends, to distribute profit among the founders (stake-holders) and disburse the dividends and also to meet founders' (stake-holders') claims for a stake (a part of a stake) being allocated thereto or for its actual value being disbursed for their benefit or for share buy-out.
4. The Bank of Russia shall be obliged within a five-day term as of the date of receiving from a credit organisation that takes measures aimed at financial rehabilitation in compliance with the demand of the Bank of Russia documentary proof of eliminating the reasons provided for by Article 4 of this Federal Law to direct to the credit organisation a notice on the withdrawal of the demand for taking measures aimed at financial rehabilitation. As of the date of the credit organisation's receiving such notice, the restrictions provided for by Item 3 of this Article shall not apply and the obligations of the credit organisation due to the rise of the reasons for taking measures to prevent bankruptcy shall be terminated.
5. Where there are reasons provided for by Article 4 of this Federal Law, the Bank of Russia shall be entitled to demand of the appropriate managerial body of a credit organisation to hold by the credit organisation within a ten-day term a sitting of the board of directors (supervisory board) of the credit organisation or an extraordinary general meeting of founders (stake-holders) of the credit organisation for rendering a decision on taking measures aimed at the financial rehabilitation of the credit organisation.

Article 13. Plan of Measures for Financial Rehabilitation of a Credit Institution

1. The Bank of Russia, in the event of detecting the reasons provided for by Article 4 of this Federal Law, shall have the right to demand that the credit organisation drafts and implements a programme of financial rehabilitation measures.
2. A program of measures for financial rehabilitation of the credit institution must contain the following provisions:
- assessment of financial standing of the credit institution;
- specific data on the forms and amounts of participation of the credit institution's founders (participants) and other persons in its financial rehabilitation;
- measures to reduce the credit institution maintenance expenses;
- measures to raise additional incomes;
- measures to secure repayment of overdue accounts receivable;
- measures to change the organisational structure of the credit institution;
- the deadline for attaining the level of sufficiency of own resources (capital) and the current liability of the credit institution. The form of the program of measures for financial rehabilitation of the credit institution is laid down by a regulatory act of the Bank of Russia.
3. The procedure for, and the time of, presenting a credit organisation's programme of its financial rehabilitation measures, as well as the procedure for, and the time of, exercising control over execution thereof, shall be established by normative acts of the Bank of Russia.

Article 14. Liability of Founders (Stake-Holders), Members of the Board of Directors (Supervisory Board) and Heads of a Credit Organisation

1. In the event of a credit organisation's bankruptcy through the fault of its founders (stake-holders), members of the board of directors (supervisory board) and the heads of the credit organisation who are entitled to give instructions mandatory for this credit organisation or are in a position to determine its actions in any other way, a court of law or an arbitration court may impose on the said persons secondary liability in respect of the credit organisation's obligations.
The bankruptcy of a credit organisation shall be deemed ensued through the fault of the heads thereof who are entitled to give instructions obligatory for this credit organisation or are in a position to determine its actions in any other way, if it is established by a court of law or by an arbitration court that the said persons have given instructions that are directly or indirectly aimed at causing the credit organisation's bankruptcy or where it is established by a court of law or by an arbitration court that the said persons have not committed the actions that they have been obliged to commit for preventing the credit organisation's bankruptcy.
The bankruptcy of a credit organisation shall be deemed ensued through the fault of its founders (stake-holders), members of its board of directors (supervisory board) who are entitled to give instructions obligatory for this credit organisation or are in a position to determine its actions in any other way, if it is established by a court of law or an arbitration court that the said persons have given instructions directly or indirectly causing the credit organisation's bankruptcy.
2. A credit organisation's founders (stake-holders) found by a court of law or by an arbitration court guilty of causing a credit organisation's bankruptcy shall not be entitled within 10 years as of the date of the arbitration court's rendering s decision on declaring the credit organisation's bankrupt to acquire shares (stocks) of another credit organisation constituting more than 5 per cent of its authorised capital.
3. Members of the board of directors (supervisory board), the heads of a credit organisation found by a court of law or by an arbitration court guilty of its bankruptcy in compliance with the requirements of Item 1 of this Article may be deprived in the procedure established by the federal law of the right to hold offices of the heads of credit organisations.
4. In the event of a failure to take measures aimed at the financial rehabilitation of a credit organisation, as well as in the event of violating the requirements of Articles 11 and 12 of this Federal Law, the head of the credit organisation may be brought to account in compliance with the federal law.
5. As heads of a credit organisation shall be deemed the persons specified as the heads of a credit organisation in the Federal Law on Banks and Banking.

Article 15. Consequences of Non-fulfillment of the Requirements of Chapter II of the Present Federal Law

Non-fulfillment by a credit organisation of the requirements stipulated by this Chapter Law shall constitute grounds for the Bank of Russia to take supervisory measures as established by federal statutes.

Chapter III. Provisional Administration

Article 16. Provisional Administration

1. The provisional administration is a special management body of the credit institution which is appointed by the Bank of Russia in the manner laid down by the present Federal Law and regulatory acts of the Bank of Russia.
2. The provisional administration shall operate in compliance with the present Federal Law, other federal statutes and regulatory acts of the Bank of Russia.

3. For the period of operation of the provisional administration the powers of executive bodies of the credit institution shall be either limited or suspended by the act of the Bank of Russia appointing the provisional administration in the manner and subject to conditions laid down by the present Federal Law.

Article 17. Grounds for Appointing a Provisional Administration

1. The Bank of Russia shall have the right to appoint a provisional administration if:
1) the credit institution fails to satisfy claims of creditors (creditor) under monetary obligations (obligation) and/or fails to satisfy liabilities to perform obligatory payments for over seven days or more from their satisfaction and/or performance date due to the non-availability or lack of cash in correspondent accounts of the credit institution;
2) the credit institution was not able to prevent a more than 30 per cent absolute reduction with respect to its own resources (capital) compared to its maximal amount achieved over the last 12 months and at the same time violates a mandatory standard established by the Bank of Russia;
3) over the last month the credit institution has violated by more than 20 per cent the current liquidity standard as established by the Bank of Russia;
4) the credit institution fails to comply with the requirements of the Bank of Russia to replace the head of the credit institution or to implement financial rehabilitation measures for the credit institution or measures to reorganize the credit institution within an established period;
5) there are grounds to revoke the credit institution's license to perform banking operation in accordance with the Federal Law on Banks and Banking Activities.
2. The Bank of Russia shall appoint the credit organisation's interim management not later than the day following the day of revocation of the credit organisation's banking transaction license.

3. The act of the Bank of Russia on appointment of the provisional administration shall be published in the «Vestnik Banka Rossii» journal within 10 days after such a decision is approved.

Article 18. Period of Operation of the Provisional Administration

1. The provisional administration shall be appointed by the Bank of Russia for a period of not more than six months.
2. Abolished.
3. If as of the time of expiration of the term of office of the interim management established under the present Federal Law there are still grounds for the appointment of an interim management under the present Federal Law the interim management shall file a petition with the Bank of Russia for the revocation of the credit organisation's banking transaction license.
4. The provisional administration appointed by the Bank of Russia after the withdrawal of a credit organisation's licence for making bank operations shall exercise its activities in the credit organisation provided for by this Federal Law from the time when it was appointed until the time when an arbitration court decides on declaring the credit organisation bankrupt and on starting bankruptcy proceedings (on approving the bankruptcy commissioner) or until the date of entry into legal force of the arbitration court's decision on appointing the liquidator of the credit organisation (hereinafter also referred to as the liquidator).

Article 19. Head of the Provisional Administration

1. The position of head of the interim management shall be filled by appointing an employee of the Bank of Russia.
2. The composition of the provisional administration shall be defined by an order of the Bank of Russia. The head of the provisional administration shall distribute duties between members of the provisional administration and shall be held responsible for the activities thereof. The employees of the State Corporation Agency for Deposits' Insurance (hereinafter referred to as the Agency) may be included into the composition of the provisional administration by approbation of the Agency.
3. The head of the provisional administration shall act on behalf of the credit institution without a power of attorney if the powers of executive bodies of the credit institution are suspended.

Article 20. The Responsibility of the Head of an Interim Management for Failing to Perform, or Improper Performance of His Duties
If the head of an interim management fails to perform, or improperly performs, his duties he/she shall be answerable under federal laws.

Article 21. Functions of the Provisional Administration in the Case of Restriction of the Powers of the Credit Institution's Executive Bodies

1. If the powers of the credit institution's executive bodies are restricted the provisional administration shall have the following functions:
perform examination and verification in respect of the credit organisation;
establish the availability of the grounds for revoking the banking transaction license of specified in Article 20 of the Federal Law on Banks and Banking Activities;
- participation in the drafting of the credit institution's financial rehabilitation measures and control over their implementation;
- control over the disposal of the credit institution's property within the limits set by the present Article;
- other functions in keeping with federal statutes.
2. When performing the functions listed in Item 1 of the present Article the provisional administration shall:
- receive from the credit institution's executive bodies the necessary information and documents concerning operations of the credit institution;
- give its consent for the credit institution's executive bodies to execute the transactions specified in Item 3 of the present Article;
- file applications with the Bank of Russia for suspending the authority of the credit institution's executive bodies if they hinder the exercise of the provisional administration's functions or if it is necessary for taking measures to prevent the bankruptcy of the credit institution. For the purposes of this Federal Law, hindering the exercise of the provisional administration's functions shall mean committing by officials of a credit organisation or by the persons acting on the instructions thereof wrongful actions or their omission to act (their failure to discharge the duties imposed upon them by the federal law, including their failure to present documents for coordination of transactions provided for by the federal law), as well as the creation of conditions under which the provisional administration cannot exercise fully or partially the functions imposed upon them by the federal law and normative acts of the Bank of Russia.
3. Only with the consent of the provisional administration shall the credit institution's executive bodies have the right to execute those transactions that:
- involve the transfer of the credit institution's real estate in lease, rent, offering it as a contribution to the authorized capital of third persons as well as the disposal of such property in another manner;
- involve the disposal of other property of the credit institution with a balance sheet value over 1 per cent of balance sheet value of the credit institution's assets including the property involving the receipt and issue of credits and loans, issue of guarantees and sureties, assignment of claims, acceptance and remittance of debts, novations, indemnity as well as the introduction of trust management;
- are concluded with concerned or affiliated persons in respect of the credit organisation determinable in compliance with the federal law or with the persons in respect of which the credit organisation under the federal law is a concerned person, or with the persons in respect of which the credit organisation is in a position to exert directly or indirectly (through a third person) an essential influence upon the decisions rendered by their managerial bodies, or with persons who are in a position to exert directly or indirectly (through a third person) an essential influence upon the decisions rendered by the managerial bodies of the credit organisation.

Article 22. Functions of the Provisional Administration in the Case of Suspension of Powers of the Credit Institution Executive Bodies

1. If powers of the credit institution's executive bodies are suspended the provisional administration shall perform the following functions:
- to act within the powers of the credit institution's executive bodies;
perform examination and verification in respect of the credit organisation;
establish the availability of grounds for revoking the banking transaction license specified in Article 20 of the Federal Law on Banks and Banking Activities;
- to draft the credit institution financial rehabilitation measures and control their implementation;
- to take measures to safeguard property and documentation of the credit institution;
- to identify creditors of the credit institution and the amounts of their claims on monetary liabilities;
- to take steps to collect debts owned to the credit institution;
- to petition the Bank of Russia to introduce a moratorium on the satisfaction of creditors of the credit institution;
- other functions in keeping with federal statutes.
2. When performing functions listed in Item 1 of the present Article the provisional administration shall:
- receive from the head, other employees of the credit organisation, as well as from other persons the necessary information and documents concerning operations of the credit institution;
- file, on behalf of the credit institution, claims with courts of general jurisdiction, arbitration courts and arbitration tribunals;
- appoint provisional administration representatives to branches of the credit institution, as well as to the management bodies of its subsidiary organisations;
- approve decisions of the board of directors (supervisory council) of the credit institution or the general meeting of its founders (participants) apart from decisions on the execution of transactions covered by Item 3 of the present Article;
- have the right to remove members of the credit institution executive bodies (dismiss them from their positions) and suspend payment of their salaries.
is entitled to convene a meeting of the founders (stake-holders) of the credit organisation in compliance with the procedure established by federal laws;
is entitled, on behalf of the credit organisation, to sue members of the board of directors (supervisory board) of the credit organisation, the sole executive body of the credit organisation (director, director general) and/or the members of the collective executive body of the credit organisation (governing body, directorate) if damage is inflicted on the credit organisation through their fault (action, omission), for the amount of the damage so inflicted, unless other grounds and scope of liability are provided by federal laws;
file a complaint with a court or arbitration court on behalf of the credit organisation claiming the recognition as null and void of deals made by the credit organisation within three years prior to the date when the interim management was appointed if these deals meet the deal invalidity criteria specified in Article 28 of the present Federal Law;
have unimpeded access to all premises of the credit organisation;
have the right, in case of necessity, to seal up the credit organisations' premises.
3. Only subject to consent of the board of directors (supervisory council) of the credit institution or the general meeting of its founders (participants) within their competence laid down by federal statutes and the founding documents of the credit institution shall the provisional administration have the right to execute those transactions that:
- involve the transfer of the credit institution's real estate in lease, rent, offering it as a contribution to the authorized capital of third persons as well as the disposal of such property in another manner;
- involve the disposal of other property of the credit institution with a balance sheet value over 5 per cent of the balance sheet value of the credit institution's assets including the property involving the receipt and issue of credits and loans, issue of guarantees and sureties, assignment of claims, transfer and remittance of debts, novations, indemnity as well as the introduction of trust management;
4. The board of directors (supervisory council) of the credit institution or the general meeting of its founders (participants) within their competence laid down by federal statutes and the founding documents of the credit institution shall have the right to expand the powers of the provisional administration in the disposal of the credit institution's property.

Article 22.1. The Functions of an Interim Management Appointed after the Revocation of a Credit Organisation's Banking Transaction License

1. An interim management appointed by the Bank of Russia after the revocation of a credit organisation's banking transaction license shall perform the same functions and have the powers conferred on the interim management by Article 22 of the present Federal Law, except the function of elabourating financial rehabilitation measures for the credit organisation, arranging for the implementation thereof and monitoring their implementation.
2. An interim management appointed by the Bank of Russia after the revocation of the credit organisation's banking transaction license shall file a petition with the Bank of Russia for the Bank of Russia to file an application with an arbitration court claiming the recognition of the credit organisation as bankrupt.
3. The provisional administration after the withdrawal of a credit organisation's licence for the exercise of banking operations shall determine the signs of fraudulent bankruptcy, and shall notify creditors of the acceptance by an arbitration court of an application for declaring the credit organisation's bankruptcy by way of publishing within 10 calendar days at the expense of the credit organisation's funds the data in the «Vestnik Banka Rossii» and in a periodical at the location of the credit organisation.
The provisional administration shall disclose in the procedure established by the Bank of Russia information on the financial status of the debtor within 10 calendar days after the acceptance by an arbitration court of an application for declaring the credit organisation bankrupt.
The provisional administration, when the application of the Bank of Russia for declaring a credit organisation bankrupt is considered by an arbitration court, shall present an opinion on the debtor's financial status, the composition of creditors and the presence of the signs of fraudulent bankruptcy.
4. A credit organisation's current obligations after the withdrawal of the licence for conducting banking operations (including the commission in its name of transactions entailing the rise of current obligations) provided for by this Federal Law up to the date of starting bankruptcy proceedings shall be discharged on the basis of the estimate of expenditure approved by the Bank of Russia.
The types of transactions made by a credit organisation as of the date of the withdrawal of the licence for the exercise of banking operations, including transactions connected with spending monetary funds and other ways of property alienation and the procedure for making them, shall be established by the Federal Law on Banks and Banking and the normative acts of the Bank of Russia adopted in compliance with it.
5. The provisional administration, in the event of the insufficiency of monetary funds for the discharge of the credit organisation's current obligations connected with ensuring its property's safety and protection of interests of the credit organisation's creditors, shall be entitled to file with a court of law or an arbitration court an application for releasing previously arrested monetary funds on bank accounts in the amount required for ensuring the credit organisation's safety according the estimate of expenses approved by the Bank of Russia.
6. In order to determine creditors of a credit organisation and the amount of their claims, the provisional administration shall be entitled to register in the procedure established by Items from 7 to 12 of this Article creditors' claims in the register of creditors' claims whose form shall be established by a normative act of the Bank of Russia by approbation of the Agency.
7. For the purpose of creditors' putting in claims against a credit organisation, the provisional administration shall direct for publishing to the official edition pointed out by the Government of the Russian Federation in compliance with the Federal Law on Insolvency (Bankruptcy), and shall publish in the «Vestnik Banka Rossii» and in the periodical at the location of the credit organisation, an announcement containing data on the credit organisation (denomination and other requisite elements thereof), the credit organisation's address and information on the provisional administration. The said announcement shall be published at the expense of the credit organisation's property.
8. Creditors of a credit organisation shall be entitled to raise its claims against a credit organisation at any time within the period of the provisional administration's activities. When raising such claims, the creditor shall be obliged to indicate along with the essence of the claims raised his own data including his family name, first name, patronymic, date of birth, requisite elements of the documents certifying his identity and the postal address for mail sending (for a natural person) and the denomination, location (for a legal entity), as well as his banking requisite elements (if any).
The person raising a claim against a credit organisation shall be obliged to inform the provisional administration in due time of changes to the data indicated in Paragraph One of this Item. In the event of failure to present such data or of an untimely presentation thereof, the provisional administration and the credit organisation shall not be liable for losses caused in connection with it.
9. The statement of claim against a credit organisation with effective decisions of a court of law or an arbitration court, rulings on issuing writs of compulsory execution of decisions of an arbitral tribunal or of other judicial acts, as well as with other original documents or their properly attested copies proving the reasonableness of this claim attached thereto shall be presented to the provisional administration.
10. The provisional administration shall consider the claim raised and on the basis of the results of its consideration shall enter it at the latest in 30 working days as of the date of receiving this claim to the register of creditors' claims, if the raised claim is properly substantiated. Within the same time period the provisional administration shall notify the appropriate creditor on entering his claim to the register of creditors' claims or on the refusal to make such entry to the said register, or on not entering the claim to the said register in full. In the event of entering a creditor's claim to the register of creditors' claims, data on the amount and composition of his claim against the debtor, as well as on the order of satisfying them, shall be shown in the appropriate notice to be sent to the creditor.
11. On the basis of received creditors' claims, the provisional administration shall draw up the register of claims of the credit organisation's creditors where shall be indicated the data on the creditors that have raised their claims, on the amount of such claims, on the order of satisfying each such claim, as well as the reasons for their rise.
12. The creditors' claims shall be shown in the register of creditors' claims in the Russian Federation currency. The creditors' claims shown in foreign currency shall be shown in the register of creditors claims in roubles at the exchange rate established by the Bank of Russia on the date of withdrawing the credit organisation's licence for making banking operations.
13. The register of claims of a credit organisations' creditors shall be passed over to the bankruptcy commissioner or to the liquidator of the credit organisation in the procedure established by Item 2 of Article 31 of this Federal Law.
14. The creditors' claims raised against a credit organisation within the period of the provisional administration's activities therein but not considered by the provisional administration on the date of expiry of its powers in the procedure established by Items from 6 to 12 of this Article shall be passed over in compliance with the list thereof to the bankruptcy commissioner or liquidator of the credit organisation in the procedure established by Item 2 of Article 31 of this Federal Law.

Article 23. Consequences of Suspension of Powers of the Credit Institution's Executive Bodies for the Duration of the Provisional Administration

1. If the powers of the credit institution's executive bodies are suspended for the duration of the provisional administration:
- the credit institution's executive bodies shall have no right to take any decisions on matters falling within their competence by virtue of federal statutes and the founding documents of the credit institution;
- decisions of other executive bodies of the credit institution shall enter into force upon approval by the provisional administration.
2. If the powers of the credit institution's executive bodies are suspended for the duration of the provisional administration the former shall be obliged to hand over stamps and seals of the credit institution not later than on the day the provisional administration is appointed, and also the accounting and other documents, tangibles and other assets of the credit institution shall be handed over within the period coordinated with the provisional administration.
3. Any opposition put up by heads, other employees or executives of a credit organisation and other persons to the exercise of the provisional administration's functions (including opposition to the access to the credit organisations' premises, to the access to its documentation and other information media , the refusal to pass over documents and seals) shall be a reason for taking by the Bank of Russia in the exercise of supervisory powers the measures provided for by the federal law, and shall be liable under federal law.
4. In the event of suspending the authority of executive bodies of a credit organisation for the period of the provisional administration's activities, the personal executive body of the credit organisation entitled pending the appointment of the provisional administration to act in the name of the credit organisation without a letter of attorney shall be entitled to represent its interests at an arbitration court, when appealing against the decision of the Bank of Russia on appointing the provisional administration, appealing against the order of the Bank of Russia on the withdrawal of the licence for making banking operations.

Article 24. Request by the Head of the Provisional Administration to Revoke the License to Perform Banking Operations

If grounds are discovered to revoke the credit institution's license to perform banking operations as specified in Article 20 of the Federal Law on Banks and Banking Activities the head of the provisional administration must submit to the Bank of Russia a request to revoke such license.

Article 25. Disputes Concerning the Activities of the Provisional Administration

1. A credit institution shall have the right to appeal against the decision of the Bank of Russia to appoint a provisional administration in an Arbitration Court in the manner laid down by federal statutes.
An appeal against a decision of the Bank of Russia concerning the appointment of an interim management and also the application of measures for providing security for claims addressed to the credit organisation shall not suspend the activities of the interim management.
2. Founders (participants) of the credit institution who hold overall no less than 1 per cent of the authorized capital of the credit institution shall have the right to file a claim with the Arbitration Court against the Bank of Russia to compensate the credit institution for the real damage if it was caused by unjustified institution of a provisional administration.

Article 26. Moratorium on the Satisfaction of Claims Filed by Creditors of a Credit Institution

1. If the powers of the credit institution's executive bodies are suspended and if there are grounds as listed by Subitem 1 of Item 1, Article 17 of the present Federal Law the Bank of Russia shall have the right to introduce a moratorium on the satisfaction of claims of the credit institution's creditors (hereafter referred to as a moratorium) for no more than three months.

The above moratorium shall cover monetary liabilities and obligations in the performance of obligatory payments which occurred prior to the appointment of the provisional administration.
2. For the period of the moratorium:
- no forfeits (fines, penalties), interest and other financial sanctions provided for by the laws or a contract for the non-fulfilment or improper fulfilment of a credit organisation's monetary liabilities and liabilities in the performance of obligatory payments (hereinafter referred to as financial sanctions) shall be incurred and no other measures of calling to account for it shall be taken;
- recovery under documents of execution and other documents by which recovery is conducted in a compulsory (not requiring acceptance) manner shall not be permitted;
- the execution of documents of execution shall be suspended, with the exception of the instances provided for by Item 3 of this Article;»;

- it is prohibited to satisfy the claims of a founder (participant) of the credit institution to allocate to him a stake (contribution) in the authorized capital of the credit institution due to his withdrawal from the group of founders (participants).
Interest shall be accrued at the rate of two thirds of the refinancing rate of the Bank of Russia on the sum of a creditor's claims relating to money liabilities and (or) compulsory payments in the amount established as on the date of imposing a moratorium (with no account taken of the interest accrued). Interest shall be accrued on the basis of the average rate of bank interest on short-term currency credits granted at the location of a creditor on the sum of a creditor's claims relating to money liabilities and (or) mandatory payments shown in foreign currency in the amount established as on the date of imposing a moratorium (with no account taken of the interest accrued). Accrued interest shall be payable upon termination of the moratorium duration.
3. Moratorium shall not cover:
- claims of citizens to whom the credit institution is liable for harm caused to life or health;
- claims of citizens to payment of severance allowance, and labour remuneration of citizens working under a labour agreement (a contract) and to payment of royalties under copyright agreements;
- claims to payments of organisational and management expenses essential for operations of the credit institution.
- execution of the documents of execution issued prior to the date of imposing a moratorium on the basis of decisions on the collection of a credit organisation's debts under the contracts of bank deposit and contracts of bank account made with natural persons.

Article 27. Refusal to Execute a Contract of the Credit Institution

If the powers of the credit institution executive bodies are suspended, the head of the provisional administration shall have the right from the time of appointment of the provisional administration to refuse to execute a credit institution's contract in the manner stipulated by the Federal Law on Insolvency (Bankruptcy).

Article 28. The Invalidity of Deals of a Credit Organisation

1. A deal of a credit organisation executed by it prior to the appointment of an interim management may be recognised by court as invalid by an arbitration court at the application of the head of the interim management on the grounds specified in the federal law.
2. A deal made by a credit organisation within the three years preceding the appointment of the provisional administration may be recognised as invalid by a court of law or an arbitration court on the application of the head of the provisional administration or a creditor of the credit organisation in the instances when the price of the said deal and other terms significantly differ, unfavourably for the credit organisation, from the price and other terms under which similar deals are made under comparable circumstances.

Article 29. Expenses of the Provisional Administration

The expenses of the provisional administration, related to its activities shall be charged to the credit institution.
The budget of the provisional administration shall be approved by the Bank of Russia.
The outlays of the provisional administration within the limits of the estimate endorsed by the Bank of Russia shall be subject to reimbursement out of order.
In the event of the absence of monetary funds on the correspondent account of a credit organisation, the foreign currency on the credit organisation's correspondent accounts opened with other credit organisations may be sold on the instructions of the head of the provisional administration within the limits of the endorsed estimate of expenditure and the amount of money gained may be entered onto the credit organisation's correspondent account opened with an institution of the Bank of Russia.

Article 30. Report of the Provisional Administration
The provisional administration shall report to the Bank of Russia in the manner established by regulatory acts of the Bank of Russia.

Article 31. Termination of Provisional Administration

1. The Bank of Russia shall decide to terminate activities of the provisional administration:
- if the reasons which led to its appointment have been eliminated;
- after rendering by an arbitration court a decision on declaring a credit organisation bankrupt and on the start of bankruptcy proceedings (the approval of an bankruptcy commissioner) or entry into force of an arbitration court's decision on appointing a liquidator;»;
- on other grounds envisaged by the present Federal Law and regulatory acts of the Bank of Russia.
2. In the event of declaring a credit organisation bankrupt or of deciding on compulsory liquidation, the provisional administration at the latest in three days as of the date of an arbitration court's rendering a decision to declare the credit organisation bankrupt and to start bankruptcy proceedings (to approve the bankruptcy commissioner) or of the date of entry into legal force of an arbitration court's decision on appointing the liquidator shall be obliged to pass over thereto seals and stamps of the credit organisation and within a time period of 10 days at the most accounting and other documents, including the register of claims of the credit organisation's creditors, material and other assets of the credit organisation accepted from the credit organisation's executive bodies in compliance with Item 2 of Article 23 of this Federal Law.
The procedure for terminating the activities of the provisional administration shall be established by normative acts of the Bank of Russia.
3. Termination of the provisional administration upon elimination of reasons that caused its institution shall result in the reinstatement of powers of the executive bodies of the credit institution.
4. Notice on termination of the provisional administration shall be published in the «Vestnik Banka Rossii» journal.

Chapter IV. Reorganisation of a Credit Institution

Article 32. Demand of the Bank of Russia to Reorganize a Credit Institution

1. The Bank of Russia shall have the right to demand that a credit institution is reorganized in the cases stipulated by Subitems 1-3 of Item 1, Article 17 of the present Federal Law. Item 1, Article 12 of the present Federal Law sets out the manner for forwarding the demand of the Bank of Russia to reorganize a credit institution.
2. A credit institution shall be reorganized in the form of merger or take-over in the procedure established by federal statutes and regulatory acts of the Bank of Russia adopted pursuant thereto.

Article 33. The Actions of a Credit Institution Having Received the Demand of the Bank of Russia to Reorganize the Credit Institution

1. Within 5 days of the receipt of the demand of the Bank of Russia to reorganize the credit institution its head shall be obligated to submit to the credit institution's management bodies stipulated in Item 1, Article 11 of the present Federal Law his request to reorganize the credit institution.
The credit institution management bodies stipulated in Item 1, Article 11 of the present Federal Law shall be obligated within 10 days upon receipt from the Bank of Russia of the reorganisation demand to inform the Bank of Russia on their decision.
2. Regulatory acts of the Bank of Russia shall lay down the requirements for the stability of credit institutions being set up through merger of credit institutions.

Chapter V. Peculiarities of Bankruptcy Case Proceedings in the Arbitration Court

Abolished.

Chapter VI. Peculiarities of Competitive Proceedings of a Credit Institution Recognized Bankrupt

Abolished.

Chapter VI.1. Proceedings Concerning a Bankruptcy Case of a Credit Organisation

Article 50.1. Procedure for Trying a Bankruptcy Case of a Credit Organisation

A case on the bankruptcy of a credit organisation shall be tried by an arbitration court according to the rules provided for by the Arbitration Procedure Code of the Russian Federation, this Federal Law or, in cases that cannot be regulated by them, by the Federal Law on Insolvency (Bankruptcy).

Article 50.2. Persons Participating in a Bankruptcy Case

1. The following persons shall participate in a bankruptcy case:
1) the credit organisation being the debtor (hereinafter also referred to as credit organisation);
2) a bankruptcy commissioner;
3) bankruptcy creditors:
4) the authorised bodies determined under the Federal Law on Insolvency (Bankruptcy) (hereinafter referred to as authorised bodies);
5) the Bank of Russia as the bank regulation and bank supervision body.
2. Persons who are not indicated in Item 1 of this Article may not enjoy the rights of the persons participating in a bankruptcy case.

Article 50.3. Persons Participating in Arbitration Proceedings Concerning a Bankruptcy Case

The following persons shall participate in arbitration proceedings concerning a bankruptcy case:
1) a representative of the credit organistion's employees;
2) a representative of the credit organisation's founders (participants);
3) a respresentative of the meeting of creditors or a representative of the committee of creditors of the credit organisation;
4) other persons in the instances provided for by the Arbitration Procedure Code of the Russian Federation and by the Federal Law on Insolvency (Bankruptcy).

Article 50.4. Applying to Arbitration Court

1. The right to file an application with an arbitration court for declaring a credit organisation bankrupt shall be enjoyed:
1) by the credit organisation;
2) by bankruptcy creditors, including natural persons enjoying the right of claim against the credit organisation under the contract of bank deposit and (or) the contract of bank account;
3) by authorised bodies;
4) by the Bank of Russia, and likewise in the instances when it is a creditor of the credit organisation.
2. A bankruptcy creditor or an authorised body shall acquire the right to file an application with an arbitration court for declaring a credit organisation bankrupt in respect of monetary commitments after the withdrawal of the credit organisation's licence for making bank operations, if the claims related to the monetary obligations are proved by an effective decision or other act of a court of law or of an arbitration court, by the ruling on the issuance of the writ of execution providing for forced execution of a decision of an arbitral tribunal, regardless of directing (presenting for execution) a document of execution in the procedure provided for by the laws of the Russian Federation on executive proceedings.
An authorised body shall acquire the right to file an application with a arbitration court for declaring a credit organisation bankrupt in respect of mandatory payments after the withdrawal of the credit organisation's licence for making bank operations, if the claim for making mandatory payments is proved by the decision of a tax or customs body on collecting debts at the expense of the credit organisation's property, regardless of an expiry of the time periods provided for by Article 7 of the Federal Law on Insolvency (Bankruptcy).
3. If by the date of the withdrawal of a credit organisation's licence for making bank operations it has the signs of bankruptcy (insolvency) provided for by this Federal Law, the Bank of Russia within five days as of the date of publishing the decision on the withdrawal of the credit organisation's licence for conducting banking operations in the «Vestnik Banka Rossii» shall be obliged to file with an arbitration court an application for declaring the credit organisation bankrupt.
In the event of detecting by the provisional administration appointed after the withdrawal of a credit organisation's licence for conducting banking operations the signs of bankruptcy (insolvency) of the credit organisation, the Bank of Russia within five days as of the date of receiving the provisional administration's petition shall file with an arbitration court an application for declaring the credit organisation bankrupt.
4. When the Bank of Russia files with an arbitration court an application for declaring a credit organisation bankrupt, there shall be taken into account the signs of insolvency (bankruptcy) provided for by this Federal Law that are presented by it. With this, the rules stipulated by Item 3 of Article 6 and Item 2 of Article 7 the Federal Law on Insolvency (Bankruptcy) shall not apply.
5. The persons indicated in Subitems 1, 2 and 3 of Item 1 of this Article shall be entitled to direct to the Bank of Russia an application for the withdrawal of a credit organisation's licence for carrying out banking operations in the event of the onset of the conditions indicated in Article 2 of this Federal Law attaching thereto the documents proving the presence of the credit organisation's pecuniary obligations and (or) debts on mandatory payments, as well as their amount determined on the date of filing the said application in compliance with the requirements of Item 2 of Article 4 of the Federal Law on Insolvency (Bankruptcy).
When considering by the Bank of Russia the application of a bankruptcy creditor or the application of an authorised body for the withdrawal of the credit organisation's licence for conducting banking operations, there shall be taken into account the claims related to pecuniary obligations proved by an effective decision or other act of a court of law or an arbitration court, by a ruling for compulsory execution of an arbitral tribunal's award.
When considering by the Bank of Russia an application of an authorised body for the withdrawal of a credit organisation's licence for making bank operations, there shall be taken into account claims for making obligatory payments, if they are proved by a decision of a tax body or customs body for collecting debts at the expense of the credit organisation's property.
A bankruptcy creditor or the body authorised with regard to pecuniary obligations shall obtain the right to make the appropriate application with the Bank of Russia on the expiry of 14 days as of the date of directing (presenting for execution) a document of execution in the procedure provided for by the laws of the Russian Federation on executive proceedings.
An authorised body shall acquire the right to file the appropriate application with the Bank of Russia in respect of mandatory payments on the expiry of 14 days as of the date of rendering the decision specified in Paragraph Three of this Item.
6. The persons indicated in Subitems 1, 2 and 3 of Item 1 of this Article who have filed with the Bank of Russia the application for the withdrawal of a credit organisation's licence for conducting banking operations shall be entitled, in the event of their not receiving an answer of the Bank of Russia on the expiry of two months as of the date of directing the said application or in the event of receiving the refusal to withdraw the said licence of the credit organisation, to file with an arbitration court an application for declaring the credit organisation bankrupt.

Article 50.5. Application for Declaring a Credit Organisation Bankrupt

1. A credit organisation's application for declaring it bankrupt must meet the requirements provided for by the Federal Law on Insolvency (Bankruptcy) in respect of a debtor's application subject to the specifics established by this Federal Law.
An application of a bankruptcy debtor or of an authorised body must meet the requirements provided for by the Federal Law on Insolvency (Bankruptcy) in respect of an application of a bankruptcy creditor and an authorised body accordingly subject to the specifics established by this Federal Law.
2. Copies of a credit organisation's application for declaring it bankrupt and copies of the documents attachable thereto shall be directed by an applicant to the Bank of Russia and, in the instance provided for by Paragraph One of Item 1 of Article 50.20 of this Federal Law, also to the Agency by registered mail with notification on the delivery or by way of directly serving it to the addressee at its location.
A notice on accepting by an arbitration court a credit organisation's application for declaring it bankrupt shall be subject to publication by the credit organisation in a periodical at the location of the credit organisation or of its branches.
A copy of the application of a bankruptcy creditor, a copy of an application of an authorised body for declaring a credit organisation bankrupt and copies of the documents attachable to such applications shall be directed by the said persons to the Bank of Russia, to the credit organisation and, in the instance provided for by Paragraph One of Item 1 of Article 50.20, also to the Agency by registered mail with notification on the delivery or by way of directly serving it to the addressee at the location thereof.
3. The following must be indicated in the application of the Bank of Russia filed with an arbitration court:
1) the denomination and location thereof;
2) the denomination of the arbitration court the application is filed with;
3) the denomination of the credit organisation and its location;
4) the number and date of the order of the Bank of Russia concerning the withdrawal of the credit organisation's licence for making bank operations;
5) the circumstances that show the credit organisation's having the signs of insolvency (bankruptcy) established by this Federal Law, as well as the proof of these circumstances;
6) the list of attached documents.
4. Other data may be indicated in the application of the Bank of Russia for declaring a credit organisation bankrupt, if they are necessary for the correct and timely consideration of the bankruptcy case, and it may contain motions, including a motion for obtaining proof on demand.
5. The Bank of Russia shall be obliged to direct to a credit organisation and, in the instance provided for by Paragraph One of Item 1 of Article 50.20 of this Federal Law, also to the Agency, a copy of the application for declaring the credit organisation bankrupt and copies of the documents attachable to it by registered mail with notification on delivery.

Article 50.6. Documents Attachable to an Application for Declaring a Credit Organisation Bankrupt

1. The following shall be attached to an application of a credit organisation, bankruptcy creditor or an authorised body for declaring the credit organisation bankrupt along with the documents provided for by the Arbitration Procedure Code of the Russian Federation and the Federal Law on Insolvency (Bankruptcy):
1) a notice on delivering to the Bank of Russia and, where necessary, to the Agency a copy of the application for declaring the credit organisation bankrupt and copies of the documents attachable to it;
2) a notice on delivering to the Bank of Russia in the procedure provided for by Item 5 of Article 50.4 of this Federal Law the application for withdrawing the credit organisation's licence for conducting banking operations in the event of the appearance of the signs of insolvency (bankruptcy) and the documents attached thereto.
2. Except for the instances provided for by Item 6 of Article 50.4 of this Federal Law, there shall be attached to the application for declaring it bankrupt, to the application of a bankruptcy creditor and of an authorised body for declaring a credit organisation bankrupt, along with the documents provided for by Item 1 of this Article, a copy of the order of the Bank of Russia to withdraw the credit organisation's licence for making bank operations published in the «Vestnik Banka Rossii» or a copy of this order attested by the Bank of Russia.
3. The following shall be attached to the application of the Bank of Russia for declaring a credit organisation bankrupt:
1) a copy of the order of the Bank of Russia to withdraw the credit organisation's licence for conducting banking operations;
2) copies of the credit organisation's constituent documents;
3) copies of the credit organisation's financial and accounting reports as of the last reporting date presentable to the Bank of Russia;
4) copies of the licences for making bank operations issued to the credit organisation;
5) the statement of the credit organisation's correspondent account opened with the Bank of Russia;
6) the statement of the obligatory reservation account of the credit organisation opened with the Bank of Russia;
7) documents that prove the credit organisation's having the signs of bankruptcy (insolvency), including the payment documents of the credit organisation's clients it has failed to execute in the established procedure (if any);
8) the list of the payment documents of the credit organisation's clients it has failed to execute in the established procedure;
9) the report on the correspondent accounts opened by the credit organisation;
10) a notice on serving to the persons indicated in Item 5 of Article 50.5 of this Federal Law copies of the application for declaring the credit organisation bankrupt and copies of the documents attached thereto;
11) a letter of attorney and other documents proving the authority to sign the application for declaring the credit organisation bankrupt.

Article 50.7. Accepting the Application for Declaring a Credit Organisation Bankrupt and Initiating Bankruptcy Proceedings

1. The application for declaring a credit organisation bankrupt may be accepted by an arbitration court and bankruptcy proceedings may be initiated solely after the withdrawal of the credit organisation's licence for conducting banking operations on the basis of an application of the persons indicated in Item 1 of Article 50.4 of this Federal Law, if the amount of claims against the credit organisation constitutes in the aggregate at least one thousandfold minimum amount of labour wages established by the federal law and if these claims are not satisfied within 14 days as of the starting date of their satisfaction or if after the withdrawal of the credit organisation's licence for conducting banking operations the cost of its property (assets) is insufficient for discharging the credit organisation's obligations with regard to creditors and for making mandatory payments. The cost a credit organisation's property (assets) and liabilities shall be subject to assessment on the basis of the methods established by normative acts of the Bank of Russia.
2. An arbitration court shall issue a ruling on accepting an application for declaring a credit organisation bankrupt thereby initiating bankruptcy proceedings.
3. In the ruling of an arbitration court on accepting the application for declaring a credit organisation bankrupt shall be indicated the date of trying the bankruptcy case, as well as may be contained indications to the instructions of the arbitration court addressed to the Bank of Russia to direct an opinion on the presence of grounds for declaring the credit organisation bankrupt and to the commission by the persons participating in the bankruptcy case of other actions aimed at ensuring the correct and timely consideration of the bankruptcy case and the time period for undertaking these actions.
4. Copies of the ruling of an arbitration court on accepting the application for declaring a credit organisation bankrupt shall be directed at the latest on the date following the date of issue thereof to the applicant, to the credit organisation and to the Bank of Russia and, in the instance provided for by Paragraph One of Item 1 of Article 50.20 of this Federal Law, to the Agency as well.
5. In the event of initiating bankruptcy proceedings on the application of the persons indicated in Subitems 1, 2 and 3 of Item 1 of Article 50.4 of this Federal Law and if the order of the Bank of Russia on withdrawing a credit organisation's licence for conducting banking operations has been issued for the reasons not connected with the presence of the signs of the credit organisations's insolvency (bankruptcy), the Bank of Russia at the latest in 10 days as of the date of receiving a copy of the ruling of an arbitration court on the acceptance of the application for declaring the credit organisation bankrupt and initiating bankruptcy proceedings shall direct to the arbitration court an opinion on the presence or absence of the reasons for declaring the credit organisation bankrupt.

Article 50.8. Shelving an Application for Declaring A Credit Organisation Bankrupt

1. An arbitration court, in the event of establishing, while it is considering the issue of accepting the application for declaring a credit organisation bankrupt, that it has been filed in the presence of the circumstances specified in Item 6 of Article 50.4 of this Federal Law, shall issue a ruling on shelving the said application.
2. An arbitration court in its ruling on shelving the application for declaring a credit organisation bankrupt shall oblige the Bank of Russia to present an opinion of the Bank of Russia on the expediency of withdrawing the credit organisation's licence for conducting banking operations or a copy of the order of the Bank of Russia for withdrawing the said licence.
The Bank of Russia shall be obliged to direct the said documents to the arbitration court within a one-month term as of the date of receiving the ruling of the arbitration court on shelving the said application.
3. Copies of the ruling on shelving the application for declaring a credit organisation bankrupt shall be directed at the latest on the day following the date of issuing it to the applicant, to the credit organisation, the Bank of Russia and, in the instance provided for by Paragraph One of Item 1 of Article 50.20 of this Federal Law, to the Agency as well.
4. In the event of presenting by the Bank of Russia to an arbitration court a copy of the order of the Bank of Russia to withdraw a credit organisation' s licence for making bank operations, the application for declaring the credit organisation bankrupt shall be deemed filed on the date of its initial receipt by the arbitration court and shall be taken over by the arbitration court in the procedure provided for by Article 50.7 of this Federal Law.

Article 50.9. Return of the Application for Declaring a Credit Organisation Bankrupt

1. Along with the reasons for returning the statement of claim provided for by the Arbitration Procedure Code of the Russian Federation, the following shall be deemed reasons for an arbitration court's returning the application for declaring a credit organisation bankrupt:
1) establishing the non-conformity of the signs of insolvency (bankruptcy) of the credit organisation indicated in such application to the requirements defined by Item 1 of Article 50.7 of this Federal Law;
2) the applicant's violating under the circumstances indicated in Item 6 of Article 50.4 of this Federal Law the procedure for filing an application for withdrawal of the credit organisation's licence for conducting banking operations provided for by Item 5 of Article 50.4 of this Federal Law;
3) filing an application for declaring bankrupt a credit organisation in respect of which an arbitration court has initiated bankruptcy proceedings;
4) presence of an effective decision of an arbitration court for invalidating the order of the Bank of Russia to withdraw the credit organisation's licence for conducting banking operations;
5) failure to meet the requirements established by Articles 50.5 and 50.6 of this Federal Law.
2. In the event of receiving an opinion of the Bank of Russia that is not expedient to withdraw a credit organisation's licence for conducting banking operations, an application for declaring it bankrupt shall be returned to the applicant.
In the event of non-receipt of the above opinion of the Bank of Russia within a one-month term, the arbitration court shall return to the applicant the application thereof for declaring the credit organisation bankrupt. In this instance, the person who has directed to the Bank of Russia the application for the withdrawal of the credit organisation's licence for conducting banking operations shall be entitled to demand from the arbitration court the reimbursement of the losses by the Bank of Russia caused by a failure of the Bank of Russia to decide on the withdrawal of the said licence of the credit organisation or by a failure of the Bank of Russia to render the decisions provided for by this Federal Law and referred to the scope of authority of the Bank of Russia on taking measures aimed at preventing the credit organisation's bankruptcy.
3. An arbitration court shall issue the ruling on the return of the application for declaring a credit organisation bankrupt. This ruling shall be directed to the applicant, to the credit organisation, to the Bank of Russia and, in the instance provided for by Paragraph One of Item 1 of Article 50.20 of this Federal Law, to the Agency as well.
4. The ruling of an arbitration court on the return of the application for declaring a credit organisation bankrupt may be appealed.
In the event of the reversal of the said ruling, the application shall be deemed filed on the date of such reversal.

Article 50.10. Specifics of Court Hearing of Bankruptcy Cases

1. Bankruptcy cases shall be heard by an arbitration court within a time period of two months at the most as of the date of accepting by the arbitration court the application for declaring a credit organisation bankrupt, including the time period for preparation of the case for court hearing and for resolving the case.
2. The preliminary court session provided for by the Arbitration Procedure Code of the Russian Federation shall not be held. The reasonableness of claims of the person who has filed an application for declaring a credit organisation bankrupt shall be verified at the same session where the bankruptcy case is heard.
3. The decision on declaring a credit organisation bankrupt must contain an indication to the following:
1) to the start of bankruptcy proceedings;
2) to recognition of the applicant's claim as well-founded and to its inclusion into the register of creditors' claims;
3) to the approval of the bankruptcy commissioner;
4) to the amount of the monthly remuneration to be paid to the bankruptcy commissioner within the time period commencing from the starting date of bankruptcy proceedings to the date of determining the amount of the bankruptcy commissioner's remuneration by a meeting of creditors or by the creditors' committee. The amount of remuneration of the bankruptcy commissioner shall not be indicated in the decision on declaring a credit organisation bankrupt, if by virtue of the law theauthority of the bankruptcy commissioner is exercised by the Agency.
4. In the instance provided for by Paragraph One of Item 1 of Article 50.20 of this Federal Law, it shall be indicated in the decision on declaring a credit organisation bankrupt that the Agency shall be the bankruptcy commissioner.
5. Judicial disputing of an order of the Bank of Russia for the withdrawal of a credit organisation's licence for conducting banking operations shall not be an obstacle to the acceptance by an arbitration court of the application for declaring this credit organisation bankrupt and shall not be a ground for suspending proceedings concerning the case on declaring this credit organisation bankrupt.
6. The decision of an arbitration court on the invalidation of the order of the Bank of Russia to withdraw a credit organisation's licence for conducting banking operations that has entered into legal force after the acceptance by the arbitration court of the application for declaring a credit organisation bankrupt shall not be an obstacle to examining the bankruptcy case on its merits.
The entry into legal force of an arbitration court's decision on invalidating the order of the Bank of Russia to withdraw a credit organisation's licence for conducting banking operations after the start of bankruptcy proceedings shall not be a reason for the reversal of the decision on declaring the credit organisation bankrupt and the review of the said decision due to newly discovered facts.
7. An arbitration court that has rendered a decision on declaring a credit organisation bankrupt shall direct this decision to the Bank of Russia, as well as to the federal executive body engaged in the state registration of legal entities for making the entry to the comprehensive state register of legal entities that the credit organisation is being liquidated.

Article 50.11. Procedure for Approving Bankruptcy Commissioner

1. The bankruptcy commissioner shall be approved if a credit organisation that does not have a licence of the Bank of Russia for attracting natural persons' monetary funds for depositing, goes bankrupt, in the procedure established by Article 45 of the Federal Law on Insolvency (Bankruptcy) subject to the specifics established by this Federal Law.
2. Where a credit organisation has the licence of the Bank of Russia for attracting monetary funds of natural persons for depositing, the Agency shall be the bankruptcy commissioner.
3. In the event of failure to present to an arbitration court in the procedure established the Federal Law on Insolvency (Bankruptcy) the candidacy of the bankruptcy commissioner being a natural person for approval, the Bank of Russia shall present to the arbitration court the Agency's candidacy.
In the event of the release of the bankruptcy commissioner being a natural person from discharging his duties or of the dismissal thereof, the authority of the bankruptcy commissioner shall be rested upon the Agency.
In the instances provided for by this Item an arbitration court shall issue a judicial act on approving the Agency in the capacity of the bankruptcy commissioner.
4. The bankruptcy commissioner shall start exercising its functions as of the date of an arbitration court's rendering a decision on declaring a credit organisation bankrupt and on starting bankruptcy proceedings (of approving the bankruptcy commissioner) and shall act up to the date of making an entry to the comprehensive state register of legal entities on the liquidation of the credit organisation.

Article 50.12. Decision of an Arbitration Court on the Refusal to Declare Credit Organisation Bankrupt

1. An arbitration court shall decide on the refusal to declare a credit organisation bankrupt in the following instances:
1) where there are no signs of insolvency (bankruptcy) provided for by Article 2 of this Federal Law;
2) in the event of detecting a fictitious bankruptcy, if the application for declaring bankrupt has been filed by a credit organisation proper.
2. If an arbitration court establishes the absence of the signs of insolvency (bankruptcy) or the fact of fictitious bankruptcy is established, the credit organisation shall be subject to compulsory liquidation in compliance with the Federal Law on Banks and Banking.

Article 50.13. Grounds for Terminating Proceedings in Respect of a Bankruptcy Case

1. An arbitration court shall terminate proceedings concerning a bankruptcy case in the following instances:
1) in the event of finding in the course of court proceedings the applicant's claims that have served as a ground for initiating bankruptcy proceedings as groundless;
2) in the event of satisfying all claims of the creditors included in the register of creditors' claims in the procedure provided for by Article 50.37 of this Federal Law;
3) in the event of termination of bankruptcy proceedings.
2. In the instances provided for by Item 1 of this Article the operation of all the restrictions provided for by this Federal Law that result from starting bankruptcy proceedings shall be terminated. The termination of proceedings on a bankruptcy case shall not entail termination of the effects of withdrawing the licence for conducting banking operations provided for by the Federal Law on Banks and Banking.
3. If not otherwise provided for by this Federal Law, the termination by an arbitration court of proceedings concerning a bankruptcy case shall be a ground for filing by the Bank of Russia an application for compulsory liquidation of the credit organisation in the procedure established by the Federal Law on Banks and Banking.

Article 50.14. Procedure for Appealing against Decisions and Rulings of an Arbitration Court

1. Decisions and rulings of an arbitration court issued in the course of trying a bankruptcy case may be appealed against with an arbitration court in the procedure provided for by the Federal Law on Insolvency (Bankruptcy).
2. When considering by superior judicial instances appeals against an arbitration court's ruling, the arbitration court that has issued the ruling shall only direct to the superior arbitration court those materials on the bankruptcy case that are directly related to the dispute of the credit organisation with a creditor or an authorised body concerning the establishment of the reasonableness, amount, composition and order of the claims' satisfaction.

Article 50.15. An Arbitration Court's Directing Judicial Acts Concerning a Bankruptcy Case

1. If not otherwise established by this Federal Law, judicial acts concerning a bankruptcy case shall be directed by an arbitration court to the credit organisation, the bankruptcy commissioner, the Bank of Russia, the bodies authorised in compliance with the Federal Law on Insolvency (Bankruptcy), the person who has filed with the arbitration court the application for declaring the credit organisation bankrupt, as well as to the persons that have participated in the arbitration proceedings.
2. The rulings settling the differences between the bankruptcy commissioner and creditors or creditors' complaints concerning breaches of their rights and legal interests shall be directed by an arbitration court to the credit organisation, the bankruptcy commissioner, as well as to the persons who have filed with the arbitration court a complaint or the application for settling the differences, or who have participated in the arbitration court's consideration of the said complaints or applications.
3. If not otherwise established by this Federal Law, copies of the judicial acts shall be directed by an arbitration court to the personas indicated in this Article within five-day term as of the date of adopting them.
4. The persons participating in a bankruptcy case, as well as the persons participating in the arbitration proceedings concerning the bankruptcy case, shall be entitled to demand of the bankruptcy manager to familiarise them with any judicial acts concerning the bankruptcy case or to present thereto copies of such acts at the expense of the said persons.

Chapter VI.2. Specifics of Bankruptcy Proceedings in Respect of a Credit Organisation Declared Bankrupt

Article 50.16. General Provisions on Bankruptcy Proceedings

1. The adoption by an arbitration court of a decision on declaring a credit organisation bankrupt shall entail starting bankruptcy proceedings.
2. Bankruptcy proceedings shall be introduced for a term of one year. The time period of bankruptcy proceedings may be extended on the application of a person participating in a bankruptcy case by six months at the most.
3. An arbitration court's ruling on extending the time period of bankruptcy proceedings shall be subject to immediate execution and may be appealed against in the procedure established by Item 3 of Article 61 of the Federal Law on Insolvency (Bankruptcy).

Article 50.17. Publishing Data on Declaring a Credit Organisation Bankrupt and on Making Preliminary Payments to the First-Turn Creditors

1. The bankruptcy commissioner within 15 days as of the date of his presenting to the Bank of Russia the documents proving his rights to make operations with respect to the correspondent account of the creditorganisation declared bankrupt or in the event of exercising the authority of the bankruptcy commissioner by the Agency as of the date of opening the master account of the credit organisation in the course of bankruptcy proceedings shall direct for publication to the official edition specified by the Government of the Russian Federation in compliance with the Federal Law on Insolvency (Bankruptcy), to the «Vestnik Banka Rossii», as well as shall publish in the periodical at the location of the credit organisation, the announcement concerning the arbitration court's decision on declaring the credit organisation bankrupt and on starting bankruptcy proceedings.
2. The following data on declaring a credit organisation bankrupt and on starting bankruptcy proceedings shall be subject to publication:
1) the denomination and other requisite elements of the credit organisation declared bankrupt;
2) the denomination of the arbitration court that has taken over the bankruptcy case, and the number of the case-file;
3) the date of the arbitration court's rendering a decision on declaring the credit organisation bankrupt and on starting bankruptcy proceedings;
4) the date of closing the register of creditors' claims determinable in compliance with Item 2 of Article 50.28 of this Federal Law;
5) the date of expiry of the time period for establishing claims of the first-turn creditors for the purpose of making preliminary payments determinable in compliance with Item 3 of Article 50.38 of this Federal Law;
6) the address of the credit organisation for creditors' raising their claims with the credit organisation;
7) data on the bankruptcy commissioner, including the denomination and address of the bankruptcy commissioner for directing mail thereto.
3. If data on declaring a credit organisation bankrupt and on starting bankruptcy proceedings are published in the official editions specified in Item 1 of this Article at different time, the time period for raising creditors' claims shall be calculated starting from the date of the first publication of this data.
4. The outlays connected with publication of the data on declaring a credit organisation bankrupt and on making preliminary payments to the first-turn creditors shall be reimbursed at the expense of the credit organisation's property.
If the property of a credit organisation is insufficient for reimbursement of the outlays on such publication, it shall be carried out at the expense of the persons who have filed an application for initiating bankruptcy proceedings in respect of the credit organisation. When the Bank of Russia files with an arbitration court an application for declaring a credit organisation bankrupt and the credit organisation's property is insufficient for covering the outlays on publishing the data provided for by Item 2 of this Article, they shall be published in the «Vestnik Banka Rossii».

Article 50.18. Publishing Data on the Course of Bankruptcy Proceedings

1. The bankruptcy commissioner, for the purpose of ensuring an equal access of creditors to the information on the course of bankruptcy proceedings, shall publish in the procedure established by this Article information reports in a periodical at the location of the credit organisation.
2. The bankruptcy commissioner shall publish the following at the latest in 70 days as of the date of declaring a credit organisation bankrupt:
1) data on the credit organisation's financial status and property thereof as of the date of starting bankruptcy proceedings;
2) the balance sheet of the credit organisation as of the last reporting date together with the profit-and-loss account;
3) data on the available spare monetary funds that can be directed for satisfying creditors' claims in respect of pecuniary obligations, including preliminary payments to the first-turn creditors;
4) the estimate of the credit organisation's current expenses provided for by Article 50.27 of this Federal Law.
3. The bankruptcy commissioner, at the latest 10 days before starting to make settlements with creditors of each turn, including settlements with first-turn creditors by way of preliminary payments, shall publish information on the procedure for, and time periods of, making settlements with creditors.
4. The bankruptcy commissioner, concurrently with publishing information on starting settlements with the first-turn creditors by way of making preliminary payments, shall publish the report on the results of the inventory and assessment of the credit organisation's property with the indication of the objects whose cost exceeds one million roubles, as well as data on the structure and amount of the creditors' claims' raised.
5. The bankruptcy commissioner, after the start of making settlements with first-turn creditors by way of making preliminary payments, shall publish at least once every three months the current information on the course of bankruptcy proceedings. The said information has to contain the following data:
1) on newly discovered property of the credit organisation;
2) on the bankruptcy commissioner's work aimed at detecting the credit organisation's transactions bearing signs of transactions' invalidity specified in Article 28 of this Federal Law and at bringing founders (stake-holders), members of the board of directors (supervisory board) and heads of the credit organisation to secondary liability in respect of the credit organisation's commitments in compliance with this Federal Law;
3) on the course of selling the credit organisation's property marking out information on the sale of objects whose balance sheet value exceeds one million roubles and indicating the selling price of the property and purchasers thereof.
6. The bankruptcy commissioner, at least once every six months when publishing information, shall include therein the following data:
1) on executing the estimate of the credit organisation's current expenses provided for by Article 50.27 of this Federal Law;
2) on the cost of the credit organisation's unsold property.
7. The data on the course of bankruptcy proceedings shall be published at the expense of the credit organisation's property within the limits of the funds provided for by the estimate of the credit organisation's current expenses approved in the procedure established by Article 50.27 of this Federal Law.
8. In the event of insufficiency of a credit organisation's property for the complete reimbursement of outlays on publishing data on the course of bankruptcy proceedings in the procedure and in the amount provided for by this Article, the bankruptcy manager shall be entitled to change the periodicity of publishing and (or) the volume of the data to be published or to refuse to carry out such publication. With this, the persons participating in a bankruptcy case, as well as the persons participating in arbitration proceedings, shall be entitled within the time period established for publication to familiarise themselves with the data to be published in compliance with Items from 2 to 6 of this Article and (or) to obtain at their own expense from the bankruptcy commissioner the documents containing the said data.
9. Publication of data on the course of bankruptcy proceedings or on the refusal to publish them in the procedure provided for by Item 8 of this Article, shall not be an obstacle for terminating bankruptcy proceedings.
10. The data indicated in Items from 2 to 6 of this Article concurrently with their publication or within time period established for their publication, shall be directed by the bankruptcy commissioner to the Bank of Russia.

Article 50.19. Effects of Opening Bankruptcy Proceedings

1. As of the date of an arbitration court's rendering a decision on declaring a credit organisation bankrupt and on starting bankruptcy proceedings:
1) the effects of withdrawing the credit organisation's licence for making bank operations provided for by Article 20 of the Federal Law on Banks and Banking shall be in effect, and likewise in the event of entry into legal force after starting bankruptcy proceedings of the decision of an arbitration court on invalidating the order of the Bank of Russia on withdrawing such licence of the credit organisation;
2) data on the financial status of a credit organisation shall not pertain to the data recognised as confidential or constituting a state secret;
3) making transactions connected with the alienation of a credit organisation's property or entailing the transfer of the property to third persons for possession and use shall be allowed solely in the procedure established by this Chapter;
4) all creditors claims in respect of pecuniary obligations, for making mandatory payments and other property claims, except for the claim for recognising the right of property, for compensating moral damage, for obtaining property on demand from other's unlawful ownership, for invalidating transactions, for applying effects of their invalidity, as well as claims concerning the current obligations provided for by Article 50.27 of this Federal Law, may only be raised in the procedure established by this Chapter;
5) the documents of execution whose execution was terminated in compliance with this Federal Law shall be transferred by bailiffs, as well as by the bodies and organisations executing the demands of judicial acts and of other bodies' acts to the bankruptcy manager in the procedure established by the federal law;
6) the property of the credit organisation previously placed under arrest shall be released and other restrictions concerning the disposal of the credit organisation's property shall be lifted. The ground for lifting the arrest of a credit organisation's property shall be the decision of an arbitration court on declaring the credit organisation as bankrupt and on starting bankruptcy proceedings. The imposition of new arrests of the credit organisation's property and of other restrictions in respect of the property's disposal shall not be allowed;
7) the credit organisations' obligations shall be discharged in the instances and in the procedure established by this Chapter.
2. As of the date of an arbitration court's rendering a decision on declaring a credit organisation bankrupt and on starting bankruptcy proceedings shall be terminated the authority of the head of the credit organisation and of other managerial bodies thereof, except for the area of the managerial bodies' authority that concerns making decisions on the conclusion of agreements on the terms and conditions of providing monetary funds to third persons for discharging the credit organisation's obligations.

Article 50.20. Bankruptcy Commissioner

1. By virtue of law, the Agency shall be the bankruptcy commissioner in the event of bankruptcy of the credit organisations that have the licence of the Bank of Russia for attracting monetary funds of natural persons for depositing.
In the event of bankruptcy of the credit organisations that do not have licences of the Bank of Russia for attracting natural persons' monetary funds for depositing, there shall be approved as the bankruptcy commissioner the arbitration managers meeting the requirements established by the Federal Law on Insolvency (Bankruptcy) and accredited with the Bank of Russia as bankruptcy managers in case of bankruptcy of credit organisations (hereinafter also referred to as the bankruptcy manager accredited with the Bank of Russia).

In the instances provided for by Item 3 of Article 50.11, as well as by Item 2 of Article 52 of this Federal Law, the functions of the bankruptcy commissioner, in case of bankruptcy of the credit organisaions that do not have the licence of the Bank of Russia for attracting natural persons' monetary funds for depositing, shall be exercised by the Agency.
The Agency shall not be paid for exercising the functions of the bankruptcy commissioner.
2. The obligatory conditions of accrediting arbitration managers with the Bank of Russia as bankruptcy commissioners in case of bankruptcy of credit organisations shall be as follows:
1) meeting the requirements to arbitration managers established by the Federal Law on Insolvency (Bankruptcy);
2) absence within the three years preceding accreditation of violations of the legislation of the Russian Federation on Insolvency (Bankruptcy) that have caused the essential infringement of creditors' rights, groundless spending of the credit organisation's bankrupt estate (hereinafter also referred to as the bankrupt estate), disproportionate satisfaction of creditors' claims, as well as absence of the instances of removing from office the bankruptcy commissioner connected with the failure to discharge or improper discharge of such duties;
3) training according to the programme endorsed by the Bank of Russia.
3. Accreditation of an arbitration manager as the bankruptcy commissioner in case of bankruptcy of credit organisations shall be effected by the Bank of Russia on the basis of the application of the arbitration manager within 30 days as of the date of its coming in. The documents proving the applicant's compliance with the requirements in respect of the accreditation established by this Federal Law shall be attached to the said application.
The application for accrediting an arbitration manager as the bankruptcy commissioner in cases of the bankruptcy of credit organisations may be directed to the Bank of Russia by the self-regulating organisation of arbitration managers.
The procedure for considering applications for accrediting arbitration managers as bankruptcy commissioners in case of bankruptcy of credit organisations, for accrediting, cancelling accreditation and denying the extension of accreditation shall be determined by normative acts of the Bank of Russia.
The Bank of Russia by approbation of the executive body authorised by the Government of the Russian Federation may establish additional requirements to the conditions of accrediting arbitration managers as the bankruptcy commissioner in case of bankruptcy of credit organisations.
The validity term of an arbitration manager's accreditation as the bankruptcy commissioner in case of bankruptcy of credit organisations shall be one year. The term of validity of the accreditation shall be extended by the Bank of Russia on the basis of applications of arbitration managers directed to the Bank of Russia 30 days before the expiry of the term of validity of the accreditation. The Bank of Russia shall issue the accreditation certificate to an arbitration manager accredited as the bankruptcy commissioner in case of bankruptcy of credit organisations
4. Damage caused by the bankruptcy manager accredited with the Bank of Russia to the persons participating in a bankruptcy case as a result of his failure to discharge, or improper discharge, his duties shall be reimbursed at the expense of his property and insurance against liability in the event of causing such damage.
The bankruptcy commissioner accredited with the Bank of Russia within 10 days as of the date of his approval as the bankruptcy commissioner in a case concerning bankruptcy of a credit organisation must insure against his liability in the event of his causing damages to the person participating in a bankruptcy case in the amount depending on the assessed value of the credit organisation's assets as of the last reporting date estimated by the provisional administration on the basis of the methods established by normative acts of the Bank of Russia, namely:
3 per cent of the assets' value exceeding 100 million roubles, when the assets' value is from 100 million to 300 million roubles;
six million roubles plus 2 per cent of the assets' value exceeding 300 million roubles, when the assets' value is from 300 million roubles to one billion roubles;
20 million roubles plus 1 per cent of the assets' value exceeding one billion roubles, when the assets' value is over one billion roubles.
The report on the proper ensuring of the liability of the bankruptcy commissioner accredited with the Bank of Russia shall be directed by him within the specified term to an arbitration court or the Bank of Russia.
5. In the event of approving the Agency as the bankruptcy manager in the procedure provided for by this Federal Law, the demand to insure liability in case of causing damages to the persons participating in a bankruptcy case shall not extend to it.
6. The Agency shall exercise the authority of the bankruptcy commissioner through the representative thereof appointed from among its employees, who shall act on the basis of a letter of attorney.
The Agency shall be obliged to direct to an arbitration court and the Bank of Russia the report on appointing its representative in a bankruptcy case within five working days as of the date of rendering by the arbitration court the decision on declaring a credit organisation bankrupt and on opening bankruptcy proceedings or issuing the judicial act on approving the Agency as the bankruptcy manager in the instances provided for by Item 3 of Article 50.11 and Item 2 of Article 52 of this Federal Law.
If there arise the circumstances entailing the impossibility of exercising by the Agency's representative his duties, and also as a result of his removal from discharging the duties of the representative of the bankruptcy commissioner in the procedure provided for by Item 4 of Article 50.24 of this Federal Law, the Agency shall be obliged within five working days as of the date of the onset of the said circumstances to direct to an arbitration court and the Bank of Russia the report on appointing a new representative of the bankruptcy commissioner.
7. The Bank of Russia shall be entitled to cancel accreditation or to deny the extension of the term of accreditation of the bankruptcy commissioner accredited with the Bank of Russia in the presence of one of the following reasons:
1) removal of the bankruptcy manager by an arbitration court from discharging the duties of the bankruptcy commissioner;
2) violation of the accreditation terms;
3) violation by the bankruptcy commissioner of the laws of the Russian Federation on insolvency (bankruptcy) that has caused an essential infringement of creditors' rights, groundless spending of bankrupt estate, disproportionate satisfaction of creditors' claims.
8. In the event of cancelling by the Bank of Russia the accreditation of the bankruptcy commissioner accredited with the Bank of Russia, he shall be removed by an arbitration court for discharging his duties on the basis of the application of the Bank of Russia.
9. The decision of the Bank of Russia on the denial of accreditation, cancellation of accreditation or on the refusal to extend the accreditation term may be appealed against with an arbitration court.

Article 50.21. Authority of the Bankruptcy Commissioner

1. The bankruptcy commissioner shall exercise the authority of the head of a credit organisation and of other managerial bodies of the credit organisation within the limits, in the procedure and under the terms and conditions that are established by this Federal Law.
2. The bankruptcy commissioner shall be obliged to act in good faith and reasonably subject to the rights and legitimate interests of creditors, the credit organisation, society and the State.
3. The bankruptcy commissioner shall be obliged:
1) to accept under his jurisdiction the credit organisation's property, to make up an inventory thereof;
2) to draw an independent appraiser to assessing the credit organisation's property, except for the instances provided for by this Federal Law;
3) to notify the credit organisation's employees on the forthcoming dismissal thereof at the latest in one month as of the starting date of bankruptcy proceedings;
4) to take measures aimed at ensuring the safekeeping of the credit organisation's property;
5) to analyze the financial status of the credit organisation;
6) to raise claims against the third persons that are in arrears in respect of the credit organisation for recovery thereof in the procedure established by this Federal Law;
7) to establish creditors' claims in the procedure provided for by Articles 50.28 and 50.29 of this Federal Law;
8) to keep the register of creditors' claims;
9) to take measures aimed at searching, detecting and returning the credit organisation's property held by third persons;
10) to pass over to the Archival Fund of the Russian Federation documents in the procedure and in compliance with the list thereof endorsed by the federal executive body exercising the functions of working out the state policy in the area of archival business and by the Bank of Russia;
11) to detect the signs of willful and fictitious bankruptcy, as well as the circumstances that are punishable under Article 14 of this Federal Law;
12) to discharge other duties established by this Federal Law.
4. The bankruptcy commissioner shall be entitled:
1) to dispose of the credit organisation's property in the procedure and under the terms established by this Federal Law;
2) to dismiss employees of the credit organisation, including the head of the credit organisation, to change the terms and conditions of labour contracts, to transfer employees to another jobs in the procedure and under the terms established by the federal law;
3) to declare the refusal to execute contracts and other transactions in the procedure established by Article 50.34 of this Federal Law;
4) to raise claims for invalidating or for applying the effects of invalidity of void transactions made by the credit organisation, and also for the reasons provided for by Article 28 of this Federal Law, for obtaining on demand the credit organisation's property from third persons, for dissolving contracts made by the credit organisation and to commit other actions provided for by federal law and other normative legal acts of the Russian Federation and aimed at the return of the credit organisation's property;
5) to draw accountants, auditors and other specialists for accomplishing the tasks arising in connection with carrying out bankruptcy proceedings;
6) to exercise other rights connected with the discharge of his duties established by federal law.
5. In the presence of the reasons established by the federal law, the bankruptcy commissioner shall raise claims against third persons that under federal law shall bear the secondary liability in respect of the credit organisation's obligations in connection with bankrupting it.
6. The bankruptcy commissioner shall be entitled to advance money for covering the outlays connected with the discharge of his duties from his own funds with the subsequent reimbursement of these outlays at the expense of the credit organisation's property in the procedure established for discharging the credit organisation's current obligations in the course of bankruptcy proceedings.

Article 50.22. Control over the Activities of the Bankruptcy Commissioner

1. The bankruptcy commissioner shall be obliged on demand of an arbitration court to present thereto all data concerning bankruptcy proceedings, including the report on his activities.
2. The bankruptcy manager shall present to the meeting of creditors, or to the creditors' committee, if it is established by them, the report on his activities, information on the financial status of the credit organisation and the property thereof on the starting date of bankruptcy proceedings and in the course of bankruptcy proceedings, as well as other information at least once a month, if the meeting of creditors or the creditors' committee do not establish longer periods for presenting the report.
The report on the bankruptcy proceedings after its presentation and consideration by the meeting of creditors or the creditors' committee shall be directed to the Bank of Russia.
3. The report of the bankruptcy commissioner to the meeting of creditors or to creditors' committee must contain the following data:
1) on the formed bankrupt estate, including those on the progress and results of an inventory of the credit organisation's property, on the progress and results of assessing the credit organisation's property;
2) on the amount of the monetary fund entered on the master account of the credit organisation, on the sources of these inpayments;
3) on the progress in selling the property of the credit organisation with the indication of the data on the procedure for sale, the balance sheet value and purchasers of, and the sums gained as result of selling, this property;
4) on the number and total amount of debt claims raised by the bankruptcy commissioner against third persons;
5) on the measures taken for the purpose of ensuring the safekeeping of the credit organisation's property, as well as at detecting and obtaining on demand the credit organisation's property possessed by third persons;
6) on the measures taken for the purpose of invalidating the credit organisation's transactions, as well as for declaring the refusal to execute the contracts made by the credit organisation;
7) on keeping the register of creditors' claims with the indication of the total amount of creditors' claims included into this register and the amounts of creditors' claims of each turn;
8) on the number of the credit organisations' employees who continue their activities while bankruptcy proceedings are going on, as well as on the number of the credit organisation's employees dismissed within this period;
9) on the bankruptcy commissioner's work aimed at closing the credit organisation's account and on the results thereof;
10) on the amount of outlays on carrying out bankruptcy proceedings with the indication of their purpose;
11) on bringing to secondary liability the third persons who under federal law are liable for the credit organisation's obligations in connection with bankrupting it;
12) other data on the progress in bankruptcy proceedings whose composition shall be determined by the bankruptcy commissioner, as well as by the demands of the meeting of creditors, or of the creditors' committee, or of an arbitration court.
4. The bankruptcy commissioner shall present on a monthly basis to the Bank of Russia the credit organisation's accounting and statistical reporting documents, as well as other information on the progress in bankruptcy proceedings on demand of the Bank of Russia in compliance with the list and in the procedure that are established by the Bank of Russia.
5. The report on preliminary payments to first-turn creditors made in compliance with Article 50.38 of this Federal Law shall be presented by the bankruptcy commissioner to an arbitration court and the Bank of Russia.
6. The Bank of Russia shall inspect the bankruptcy commissioner's activities in the instances and in the procedure established by the normative acts of the Bank of Russia.
7. The Bank of Russia shall be entitled to direct to the bankruptcy commissioner an order to eliminate violations of the normative legal acts regulating the relations connected with insolvency (bankruptcy) of credit organisations that are detected on the basis of the reporting documents presented by the bankruptcy commissioner or in the course of his activities.
A failure to follow the order of the Bank of Russia to eliminate detected violations shall be a ground for cancelling the accreditation of the bankruptcy commissioner accredited with the Bank of Russia. The decision of the Bank of Russia may be appealed with an arbitration court within 10 days as of the date of rendering it.
In the event of detecting by the Bank of Russia any violations while the authority of the bankruptcy commissioner is exercised by the Agency, the latter shall be obliged within 10 days as of the date of receiving the appropriate order of the Bank of Russia to take measures aimed at eliminating them and to notify the Bank of Russia on it.
The Agency's failure to follow the order of the Bank of Russia on eliminating violations shall be a ground for the Bank of Russia to file a complaint with the arbitration court trying the bankruptcy case against the Agency's actions.
8. An arbitration court on the basis of the results of considering the complaint indicated in Item 7 of this Article shall render the following decisions:
1) on allowing the bankruptcy commissioner's complaint for declaring the bankruptcy commissioner's actions unlawful and on forcing the bankruptcy commissioner to eliminate the violations;
2) on dismissing the Agency's representative;
3) on the refusal to allow the complaint.
9. In the event of the Bank of Russia's receiving a complaint of the creditors' committee against the bankruptcy commissioner's actions or of the petition for cancelling his accreditation, the Bank of Russia shall be obliged within a 30-day term to consider the said complaint or petition and to decide on the following:
1) on directing to the bankruptcy commissioner an order to eliminate violations of the normative legal acts regulating the relations connected with insolvency (bankruptcy) of credit organisations;
2) on holding inspections of the bankruptcy commissioner's activities;
3) on cancelling the accreditation;
4) on declaring the complaint groundless.

Article 50.23. Releasing the Bankruptcy Commissioner Accredited with the Bank of Russia from Discharging the Bankruptcy Commissioner's Duties
1. The bankruptcy commissioner accredited with the Bank of Russia, in the event of his filing an application for his release fromdischarging the duties of the bankruptcy commissioner and in other instances provided for the federal law, may be released by an arbitration court from discharging the duties of the bankruptcy commissioner.
2. In the event of releasing the bankruptcy commissioner accredited with the Bank of Russia from discharging the duties of the bankruptcy commissioner, the arbitration court shall concurrently approve the Agency as the bankruptcy commissioner in the procedure established by Item 3 of Article 50.11 of this Federal Law.
3. The ruling of an arbitration court on releasing the bankruptcy commissioner accredited with the Bank of Russia from discharging the duties of the bankruptcy commissioner shall be subject to immediate execution and may be appealed.

Article 50.24. Dismissal of the Bankruptcy Commissioner Accredited with the Bank of Russia or of the Agency's Representative from Discharging the Duties of the Bankruptcy Commissioner
1. The bankruptcy commissioner accredited with the Bank of Russia may be dismissed by an arbitration court from discharging the duties of the bankruptcy commissioner:
1) on the basis of the petition of the meeting of creditors or the creditors' committee in the event of his failure to discharge, or improper discharge of, his duties of the bankruptcy commissioner;
2) in connection with an arbitration court's allowing the complaint of a person participating in the bankruptcy case against the bankruptcy commissioner's failure to discharge, or improper discharge of, his duties provided that such failure to discharge, or improper discharge of, his duties has violated the rights or legitimate interests of the complainant or has caused damage to the credit organisation or to creditors thereof;
3) on the basis of the petition of a person participating in the bankruptcy case in the event of detecting the circumstances impeding the endorsement of the person indicated in Paragraph One of this Item as the bankruptcy commissioner, as well as if these circumstances arose after approving the person indicated in Paragraph One of this Item as the bankruptcy commissioner;
4) in the event of the Bank of Russia cancelling the accreditation of the bankruptcy commissioner accredited with the Bank of Russia.
2. An arbitration court, concurrently with dismissing the bankruptcy commissioner accredited with the Bank of Russia from discharging the duties of the bankruptcy commissioner, shall approve the Agency as the bankruptcy commissioner in the procedure established by Item 3 of Article 50.11 of this Federal Law.
3. The ruling on an arbitration court on dismissing the bankruptcy commissioner accredited with the Bank of Russia from discharging the duties of the bankruptcy commissioner shall be subject to immediate execution and may be appealed.
4. The Agency's representative, while discharging the duties of the representative of the bankruptcy manager, may be dismissed by an arbitration court from discharging the said duties in connection with the arbitration court's satisfying the complaint of a person participating in the case against a failure of the Agency's representative to discharge, or his improper discharge of, the duties of the bankruptcy commissioner on condition that such failure to discharge, or improper discharge of the said duties, has violated the rights or legitimate interests of the complainant or has caused damage to the credit organisation or to creditors thereof.
5. The ruling of an arbitration court on dismissing the Agency's representative from discharging the duties of the bankruptcy commissioner's representative shall be subject to immediate execution and may be appealed.

Article 50.25. Creditors' Rights in Case of a Credit Organisation's Bankruptcy

1. Creditors of a credit organisation shall enjoy the rights provided for by the Federal Law on Insolvency (Bankruptcy) and by this Federal Law.
2. When carrying out bankruptcy proceedings, the legitimate interests of bankruptcy creditors and authorised bodies shall be represented by a meeting of creditors and (or) the creditors' committee acting in compliance with the Federal Law on Insolvency (Bankruptcy) subject to the specifics established by this Federal Law. The authority of the meeting of creditors and of the creditors' committee shall be determined in compliance with the Federal Law on Insolvency (Bankruptcy).
3. When the meeting of creditors renders decisions, there shall be taken into account votes of the bankruptcy creditors and authorised bodies whose claims are included in the register of creditors' claims as of the date of holding the meeting.
4. The bankruptcy commissioner shall be entitled to call the first meeting of creditors after establishing in compliance with Subitem 1 of Item 3, Items 4, 6 and 10 of Article 50.28 of this Federal Law the claims raised in compliance with Item 2 of Article 50.29 of this Federal Law but at the latest in 90 days as of the date of publishing the data on declaring the credit organisation bankrupt and on starting bankruptcy proceedings.
5. The meeting of creditors and (or) the creditors' committee shall be entitled to file a complaint with the Bank of Russia against the bankruptcy commissioner's actions (omission to act) and the petition for cancelling the accreditation of the bankruptcy commissioner accredited with the Bank of Russia.
6. A creditor shall be entitled, by way of directing a reasoned inquiry, to demand of the bankruptcy commissioner to present copies of documents on the transactions provided for by Article 28 of this Federal Law made in the amount exceeding one million roubles. The outlays on preparing copies of the said documents shall be covered at the expense of creditors.

Article 50.26. Amount of Pecuniary Obligations and Duties in Respect of Making Mandatory Payments
1. For the purpose of this Federal Law, the amount of pecuniary obligations and duties in respect of making mandatory payments by a credit organisation, except for the current obligations provided for by Article 50.27 of this Federal Law, shall be determined on the date of withdrawing the credit organisation's licence for conducting banking operations, if not otherwise provided for by this Federal Law.
2. The amount of pecuniary obligations and duties in respect of making mandatory payments shown in foreign currency shall be determined in roubles at the exchange rate established by the Bank of Russia on the date of withdrawing the credit organisation's licence for conducting banking operations, except for the current obligations of the credit organisation.

Article 50.27. Current Obligations of a Credit Organisation in the Course of Bankruptcy Proceedings

1. A credit organisation's current obligations shall mean the following:
1) the duty of paying off the debts formed before the date of withdrawing the credit organisation's licence for conducting banking operations related to payments for carried out works (rendered services) that are connected with continued functioning of the credit organisation within the limits of the estimate of outlays endorsed by the Bank of Russia in compliance with the Federal Law on Banks and Banking;
2) the pecuniary obligations the grounds for which has arisen as of the date of withdrawal of the credit organisation's licence for conducting banking operations and up to the date of completing bankruptcy proceedings, including the following:
obligations to cover the outlays connected with the continued functioning of the credit organisation, including labour wages of the persons working under labour contracts, payment of dismissal wages to these persons in the event of their dismissal.
obligations to pay remuneration to the bankruptcy commissioner accredited with the Bank of Russia;
court costs of the credit organisation, outlays on publishing the reports provided for by this Federal Law, as well as other outlays connected with carrying out bankruptcy proceedings following from this Federal Law;
3) the duty of making mandatory payments that arose within the period starting from the date of withdrawing the credit organisation's licence for conducting banking operations up to the starting date of bankruptcy proceedings, as well as the duty of making mandatory payments that arose in the course of bankruptcy proceedings when paying labour wages to the credit organisation's employees;
4) the duty of deducting monetary funds from the wages of the credit organisation's employees paid in connection with discharging the duties indicated in Subitem 1 of this Item within the period from the date of withdrawing the credit organisation's licence for conducting banking operations up to the date of completing bankruptcy proceedings, as well as the duty of remitting the amounts of such deductions in compliance with the laws of the Russian Federation (alimonies, tax on natural persons' incomes, union dues and other payments placed on the employer in compliance with the federal law).
2. For the purposes of this law, the duty of making mandatory payments arise as of the date of the expiry of the time period (tax period) established for estimating the amount of mandatory payment payable in compliance with the laws of the Russian Federation on taxes and fees.
3. The outlays on discharging a credit organisation's current obligations shall be included in the estimate of current expenses of the credit organisation and shall be made by the bankruptcy commissioner on the basis of such estimate.
4. If not otherwise established by this Article, the estimate of the current expenses of a credit organisation shall be endorsed (changed) by the bankruptcy commissioner.
5. The estimate of the current outlays of a credit organisation, as regards the outlays made after holding the first meeting of creditors, shall be subject to approving (changing) by the meeting of creditors or, if they have established the creditors' committee, by the creditors' committee on the proposal of the bankruptcy commissioner.
The estimate of current outlays of a credit organisation must be presented for approval to the first meeting of creditors thereof or, if they have established the creditors' committee, to the creditors' committee at the latest in three days as of the date of its establishment. In the event of a non-approval (refusal to approve) by the creditors' meeting or by the creditors' committee of the estimate of the credit organisation's current expenses, the meeting of creditors or the creditors' committee shall be entitled to file the application with an arbitration court for settling the differences between the bankruptcy commissioner and the meeting of creditors or the creditors' committee. On the basis of the results of considering the said differences the arbitration court shall endorse the estimate of the credit organisation's current outlays made after rendering the appropriate judicial act.
6. The estimate of a credit organisations' current outlays approved by the meeting of creditors, or by the creditors' committee, or by an arbitration court in the procedure established by Item 5 of this Article may be changed by the meeting of creditors or the creditors' committee on the proposal of the bankruptcy commissioner, or, if there are differences between them concerning the introduction of amendments into the said estimate, by an arbitration court in the procedure provided for by Item 5 of this Article.
7. Pending the approval (changing) of the estimate of current outlays by the meeting of creditors, or by the creditors' committee, or by an arbitration court in the procedure provided for by Items 5 and 6 of this Article, the estimate of current outlays of the credit organisation approved (changed) by the bankruptcy commissioner shall be in effect.
8. Claims concerning current obligations of a credit organisation shall not be subject to inclusion into the register of creditors' claims. Creditors in respect of current obligations of a credit organisation shall not be recognised in the course of bankruptcy proceedings as persons participating in the bankruptcy case.
9. Creditors' claims in respect of current obligations of a credit organisations shall be allowed in the course of bankruptcy proceedings in the procedure established by this Article.

Article 50.28. Establishing the Amount of Creditors' Claims

1. Creditors shall be entitled to raise their claims against a credit organisation at any time during bankruptcy proceedings, as well as in the procedure established by Article 22.1 of this Federal Law within the period of the provisional administration's functioning in the credit organisation.
A creditor, when making claims, shall be obliged to indicate along with the essence of claims raised, data on himself, including his family name, first name, patronymic, date of birth, requisite elements of the document certifying his identity and the postal address thereof for sending mail (for a natural person), the denomination and location (for a legal entity), as well as banking requisite elements (if any).
The said claims shall be raised in respect of the bankruptcy commissioner attaching effective decisions of a court of law, of an arbitration court, rulings on issuing a writ of execution for compulsory execution of decisions of an arbitral tribunal or of other judicial acts, as well as of the original documents or properly attested and certified copies thereof proving the substantiation of these claims.
2. For the purpose of bankruptcy proceedings, the bankruptcy commissioner shall establish the time period for raising creditors' claims upon the expiry of which the register of creditors' claims shall be deemed closed.
The time period for raising creditors' claims may not be less than 60 days as of the date of publishing a report on declaring a credit organisation bankrupt and on starting bankruptcy proceedings.
In order to refer the claims received by the bankruptcy commissioner to those raised within the established time period notifications on delivery or other documents proving the time of receiving the said claims by the bankruptcy commissioner shall taken into consideration.
3. Creditors' claims shall be deemed established if they:
1) are proved by an effective decision of a court of law, arbitration court ruling on issuing the writ of execution for compulsory execution of an arbitral tribunal's decision or by other judicial act in the absence of data on the subsequent partial or complete satisfaction or termination of such claims;
2) are determined by an arbitration court in the procedure provided for by Item 7 of this Article;
3) are determined by the bankruptcy commissioner in the procedure provided for by Items 4 and 6 of this Article, as well as by Item 3 of Article 50.30 of this Federal Law;
4) are determined in the procedure provided for by Item 10 of this Article.
4. The bankruptcy commissioner shall consider a creditor's claim raised in the course of bankruptcy proceedings and on the basis of the results thereof shall enter it at the latest in 30 working days as of the date of receiving such claim to the register of creditors' claims, if the claim raised is well-founded. Within the same time period the bankruptcy commissioner shall notify the appropriate creditor of the inclusion of his claim into the register of creditors' claims, or on the refusal to effect such inclusion into the said register, or on the partial inclusion of the claim into the said register. In the event of entering a creditor's claim into the register of creditors' claims, data on the amount and composition of his claim against the credit organisation, as well as on the order of satisfying it, shall be shown in the notice directed to the creditor.
5. Objections in respect of the results of considering by the bankruptcy commissioner of a creditor's claim may be lodged by the creditor with an arbitration court at the latest in 15 calendar days as of the date of the creditor's receiving a notice of the bankruptcy commissioner on the results of considering this claim. A notice on serving to the bankruptcy commissioner a copy of such objections or other documents proving the direction to the bankruptcy commissioner copies of the objections and of the documents attached to the objections must be enclosed to the said objections.
6. The creditors' claims against which objections are not lodged within the time period provided for by Item 5 of this Article shall be deemed established in the amount, in the composition and with the order of satisfaction that are determined by the bankruptcy commissioner.
7. The creditors' claims against which objections are lodged shall be examined by an arbitration court in the procedure provided for by Article 60 of the Federal Law on Insolvency (Bankruptcy).
On the basis of the results of such examination shall be issued the ruling of an arbitration court on the inclusion of, or on the refusal to include, the said claims to the register of creditors' claims. The amount of, and order of satisfying, these claims shall be indicated in the ruling of the arbitration court on including such claims into the register of creditors' claims.
A copy of the ruling on including, or on the refusal to include, the said claims into the register of creditors' claim shall be directed to the person who has lodged the objections and to the bankruptcy commissioner at the latest on the day following the day of rendering the arbitration court's ruling.
The ruling of an arbitration court on the inclusion, or on the refusal to include, creditors' claims into the register of creditors' claims shall be subject to immediate execution and may be appealed.
8. A creditor's claim established by the appropriate ruling of an arbitration court shall be included by the bankruptcy commissioner into the register of creditors' claims at the latest on the day following the date of receiving a copy of the said ruling by the bankruptcy commissioner, and the creditor shall be notified by the bankruptcy commissioner of it within three days as of the date of making the appropriate entry to the register of creditors' claims.
9. Differences concerning the claims of creditors or of authorised bodies proved by an effective decision or other act of a court of law or of an arbitration court, as regards their composition and amount, shall not be subject to consideration by an arbitration court, while the application concerning such differences shall be subject to return, except for the differences connected with the execution of judicial acts or with the review thereof.
10. A creditor's claim made by a credit organisation within the period of functioning of the provisional administration therein and entered to the register of creditors' claims in the procedure established by Article 22.1 of this Federal Law shall be deemed established in the amount, in the composition and with the order of satisfaction that are determined by the provisional administration, if the bankruptcy commissioner subject to the provisions of Subitem 1 of Item 3 of this Article, does not direct to the creditor within 60 working days as of the date of publishing the report on declaring the credit organisation bankrupt and on starting bankruptcy proceedings a notice on the complete or partial exclusion of the said claim from the register of creditors' claims.
Objections in respect of the contents of the notice specified in Paragraph One of this Item may be lodged by creditors, as well as considered by an arbitration court, in the procedure provided for by this Article. The creditors' claims in respect of which the said objections are not lodged within the time period provided for by Item 5 of this Article shall be deemed established in the amount, in the composition and with the order of satisfaction that are determined by the bankruptcy commissioner.
The creditors' claims raised against a credit organisation within the period of functioning therein of the provisional administration and not considered by the provisional administration as of the date of expiry of the term of its authority in the procedure established by Items 6 to 12 of Article 22.1 of this Federal Law shall be deemed raised on the date of publishing data on declaring the credit organisation bankrupt and on starting bankruptcy proceedings, and shall be considered (established) in the procedure provided for by this Article. With this, the bankruptcy manager shall carry out the actions indicated in Item 4 of this Article within 60 days as of the date of publishing data on declaring the credit organisation bankrupt and on starting bankruptcy proceedings.

Article 50.29. Establishing the Amount of Creditors' Claims for the Purpose of Determining the Participants of the Creditors' Meeting

1. The amount of creditors' claims for the purpose of determining participants of the meeting of creditors shall be established in the procedure provided for by Article 50.28 of this Federal Law.
2. Creditors, for the purpose of participating in the first meeting of creditors, shall be entitled to raise their claims against the credit organisation within 30 calendar days as of the date of publishing data on declaring the credit organisation bankrupt and on starting bankruptcy proceedings, as well as in the procedure established by Article 22.1 of this Federal Law within the period of the provisional administration's functioning in the credit organisation.
On the expiry of the above mentioned time period the register of creditors' claims for the purpose of determining participants of the first meeting of creditors shall be deemed closed.
3. The creditor (the creditor's representative) whose claims are included in the register of creditors' claims on the basis of copies of the documents indicated in Item 1 of Article 50.28 of this Federal Law shall only be admitted to participation in the creditors' meeting upon the presentation of the original documents proving the reasonableness of these claims.

Article 50.30. Register of Creditors' Claims

1. The register of creditors' claims shall be kept by the bankruptcy commissioner. Subject to the specifics established by Item 10 of Article50.28 of this Federal Law, the said register shall include data from the register of creditors' claims drawn up by the provisional administration in compliance with Article 22.1 of this Federal Law, which shall be passed over to the bankruptcy manager in the procedure established by Article 31 of this Federal Law.
2. If not otherwise established by this Article, a creditor's clams shall be included in the register of creditors' claims on the creditor's application in writing on the basis of an effective decision of a court of law, an arbitration court, the ruling on the issue of a writ of execution for compulsory execution of an arbitral tribunal's decision or other judicial act, as well as on the basis of other documents proving the substantiation of these claims.
3. Claims of the first-turn and second-turn creditors may be included by the bankruptcy commissioner in the register of creditors' claims without a creditor's application in writing on the basis of available data of the credit organisation. In this case, the bankruptcy commissioner shall be entitled for verifying the reasonableness of such data to demand of the said creditors the documents provided for by Item 1 of Article 50.28 of this Federal Law.
In the event of including into the register of creditors' claims the first-turn creditor'claims or the second-turn creditor's claims without such creditor's application in writing on the basis of available data of the credit organisation, the bankruptcy commissioner shall direct within the time period of five working days at the most as of the date of making an appropriate entry to the register of creditors' claims a notice to the said creditor in the procedure provided for by Item 4 of Article 50.28 of this Federal Law.
Objections in respect of the contents of the said notice may be lodged by a first-turn creditor or a second-turn creditor, and be considered by an arbitration court in the procedure provided for by Article 50.28 of this Federal Law. The claims of the first-turn creditors and of the second-turn creditors in respect of which objections are not lodged within the time period provided for by Item 5 of Article 50.28 of this Federal Law shall be deemed established in the amount, in the composition and with the order of satisfaction that are determined by the bankruptcy commissioner.
4. A creditor's claim shall be excluded by the bankruptcy commissioner from the register of creditors' claims on the basis of an arbitration court's ruling, except for the instance provided for by Item 10 of Article 50.28 of this Federal Law or for the instance when a creditor presented his consent in writing to the exclusion of his claim from the register of creditors' claims
5. In the register of creditors' claims must be indicated data on each creditor, on the amount of his claims against the credit organisation, on the order of satisfying each claim of the creditor, as well as the reasons for the rise of the creditor's claim.
The bankruptcy commissioner may likewise include in the register of creditors' claims other data that is important for establishing the amount of creditors' claims for the purpose of balanced satisfaction of creditors' claims, as well as for the purpose of exercising other rights by creditors provided for by this Federal Law.
6. A creditor whose claims are included in the register of creditors' claims shall be obliged to inform the bankruptcy manager in due time of changes in the data indicated in Item 1 of Article 50.28 of this Federal Law.
In the event of failure to present or untimely presentation of the above data, the bankruptcy commissioner and the credit organisation shall not be liable for the damage in connection with it.
7. The bankruptcy commissioner shall be obliged on demand of a creditor (a creditor's representative) to direct to the said creditor within five working days as of the date of receiving such claim an extract from the register of creditors' claims concerning the amount, composition and order of satisfying these claims.
Outlays on directing such extract in the amount not exceeding the cost of services of a communication office shall be borne by the creditor.
8. Labour disputes between a credit organisation and an employee of a credit organisation shall be considered in the procedure determined by the labour and civil procedure laws of the Russian Federation.

Article 50.31. Credit Organisation's Account

1. The bankruptcy commissioner shall be obliged to use in the course of bankruptcy proceedings solely one correspondent account of the credit organisation declared bankrupt for monetary funds in the Russian Federation currency, that is, the master account of the credit organisation opened with the Bank of Russia, as well as, depending on the number of foreign currency types available to the credit organisation, the required number of the credit organisation's accounts for monetary funds in foreign currency opened opened with other credit organisations in the procedure established by the Bank of Russia.
The list of credit organisations where the bankruptcy manager may open foreign currency accounts for the credit organisation being the debtor shall be endorsed by the Government of the Russian Federation.
2. When the Agency exercises the authority of the bankruptcy commissioner, the credit organisation's accounts in the course of bankruptcy proceedings shall be opened with the Agency.
For the purpose of exercising the functions of the bankruptcy commissioner, the Bank of Russia shall open for the Agency accounts for monetary funds in the currency of the Russian Federation.
3. The accounts of a credit organisation opened with other credit organisations, including those detected in the course of bankruptcy proceedings, except for the accounts opened for making settlements for exercising the activity connected with trust management, and special broker's accounts of a professional securities market participant exercising broker's activity shall be subject to closing as they are detected. The balance of a credit organisation's monetary funds must be remitted from the said accounts to the credit organisation's accounts in the course of bankruptcy proceedings.
After an arbitration court's rendering a decision on declaring a credit organisation's bankrupt and on opening bankruptcy proceedings the Bank of Russia within 10 days as of the date of receiving from the bankruptcy commissioner the appropriate claim shall remit to the credit organisation's account in the course of bankruptcy proceedings the obligatory reserve funds deposited by the credit organisation with the Bank of Russia, as well as other monetary funds of the credit organisation placed with the Bank of Russia.
The monetary funds of a credit organisation received in the course of bankruptcy proceedings shall be entered to the credit organisation's accounts in the course of bankruptcy proceedings.
4. Payments to creditors, current payments for public utilities and operational payments of a credit organisation shall be made, as well as other expenses connected with carrying out bankruptcy proceedings shall be covered, using the credit organisation's master account.
5. The bankruptcy commissioner shall present information on spending monetary funds of a credit organisation with the use of its accounts in the course of bankruptcy proceedings to an arbitration court, the creditors' committee and the Bank of Russia upon request thereof but once a month at the most.

Article 50.32. Specifics of Making the Inventory and Assessing Credit Organisation's Property

1. In the course of bankruptcy proceedings the bankruptcy commissioner shall carry out the inventory and shall assess the credit organisation's property in the procedure provided for by the Federal Law on Insolvency (Bankruptcy), if not otherwise established by this Federal Law.
The inventory and assessment of a credit organisation's property must be carried out at the latest in six months as of the date of declaring the credit organisation bankrupt and of opening bankruptcy proceedings, if not otherwise determined by the creditors' committee.
2. The market price of a credit organisation's securities admitted to circulation in the organised securities market may be determined without drawing thereto an independent appraiser in compliance with the procedure established by the federal executive body authorised by the Government of the Russian Federation.
3. Bankruptcy creditors, authorised bodies and the Bank of Russia shall be entitled to appeal against the results of assessing the credit organisation's property with an arbitration court trying bankruptcy cases in the procedure established by the federal law.

Article 50.33. Specifics of Selling Property of Credit Organisations

1. After carrying out the inventory and assessment of a credit organisation's property the bankruptcy commissioner shall start selling the credit organisation's property by advertised bidding in the procedure and under the terms and conditions that are determined by the Federal Law on Insolvency (Bankruptcy), if another procedure for selling it is not provided for by this Article.
2. When selling a credit organisation's property, the right of claim under contracts of loan, credit and factoring may be offered for sale as a single lot (the sale of a credit organisation's credit portfolio).
The property passed over to a credit organisation under contracts of leasing with the simultaneous cession of the right of claim under such contracts may be likewise offered for sales.
3. The bankruptcy commissioner, for the purpose of shortening the time period for making settlements with creditors, shall be entitled to acquire the property of the credit organisation not sold during repeated sales at the initial price established for a repeated auction. The said transaction shall be made in written form.
4. The securities possessed by a credit organisation that have not been admitted to circulation in the organised securities market may be sold through the trade promoter in the securities market or on the basis of a contract of purchase and sale made without holding an auction.
5. The assets substitution and the sale of an enterprise to a credit organisation that are provided for by the Federal Law on Insolvency (Bankruptcy) shall not be allowable in the course of bankruptcy proceedings.

Article 50.34. Invalidation of Credit Organisation's Transactions and Refusal to Execute Credit Organisation's Contracts

1. The transactions made by a credit organisation may be invalidatedby an arbitration court on the basis of the claim of the bankruptcy commissioner or creditors of the credit organisation for the reasons provided for by Article 28 of this Federal Law.
In the instances provided for by Item 1 of Article 28 of this Federal Law the claim for invalidating a transaction or for applying the effects of invalidity of a void transaction shall be raised by the bankruptcy commissioner in the name of the credit organisation, if not otherwise provided for by Paragraph Three of this Item.
In the instances provided for by Item 2 of Article 28 of this Federal Law, as well as by Items 2 to 5 of Article 103 of the Federal Law on Insolvency (Bankruptcy) the bankruptcy commissioner shall raise the claim for invalidating transactions or for applying the effects of invalidity of a void transaction in his own name. With this, the periods when the transactions indicated in Article 103 of the Federal Law on Insolvency (Bankruptcy) that may be invalidated at the claim of the bankruptcy commissioner or creditors of a credit organisation shall be calculated starting from the date of appointing by the Bank of Russia the provisional administration for the credit organisation.
2. The bankruptcy commissioner shall be entitled to refuse to execute contracts and other transactions of a credit organisation that are not executed by the parties in whole or in part, if the credit organisation's execution of the said transactions can cause damages for the credit organisation, as compared to similar transactions made under comparable circumstances.
3. In the instances provided for by Item 2 of this Article a contract of a credit organisation shall be deemed dissolved as of the date of receiving by all parties to the said contract the application of the bankruptcy commissioner on the refusal to execute the contract.
The party to a contract of a credit organisation in respect of which the refusal of execution is declared shall be entitled to demand of the credit organisation the reparation of the damages caused by the refusal of execution of the said contract.

Article 50.35. Credit Organisation's Bankrupt Estate

1. All the property of a credit organisation available on the date of starting bankruptcy proceedings and detected in the course of bankruptcy proceedings shall make the bankrupt estate.
2. The property constituting mortgage coverage in compliance with Item 4 of this Article, as well as other property excludable from the bankrupt estate in compliance with the laws of the Russian Federation, shall be excluded from the credit organisation's property constituting the bankrupt estate.
The property put in pledge shall be separately registered within the composition of a credit organisation's property and shall be subject to mandatory evaluation.
3. If the property of a credit organisation includes property constituting socially important objects in compliance with the Federal Law on Insolvency (Bankruptcy), as well as housing stock for social use which is not includable into the bankrupt estate in compliance with the Federal Law on Insolvency (Bankruptcy), the transfer (sale) of the said property shall be carried out by the bankruptcy commissioner in the procedure and under the terms and conditions established by the said Federal Law.
4. The property constituting the mortgage cover of a credit organisation that has issued mortgage bonds in compliance with Federal Law No. 152-FZ of November 11, 2003 on Mortgage Securities shall be excluded from the bankrupt estate, while creditors' claims in respect mortgage bonds shall be satisfied in the procedure established by the said Federal Law.

Article 50.36. Order of Satisfying Creditors' Claims in the Course of Bankruptcy Proceedings

1. A credit organisation's obligations in respect of creditors thereof shall be discharged in the course of bankruptcy proceedings in the order established by the Federal Law on Insolvency (Bankruptcy) subject to the specifics established by this Article.
2. The current obligations of a credit organisation provided for by Article 50.27 of this Federal Law shall be discharged out of turn at the expense of the bankrupt estate.
The order of discharging a credit organisation's current obligations shall be determined in compliance with Article 855 of the Civil Code of the Russian Federation.
3. There shall be satisfied in the first turn:
1) the claims of the natural persons in respect of which the credit organisation is liable for causing damage to their life and health by way of capitalising appropriate time payments, and the moral damage shall be compensated as well;
2) the claims of the natural persons who are creditors of the credit organisation under contracts of bank deposit and (or) bank account made with them (except for the persons engaged in business activities without forming a legal entity, if such accounts are opened in connection with the said activities, as well as for the persons indicated in Item 5 of this Article);
3) the Agency's claims under contracts of bank deposit and bank account passed over to it in compliance with Federal Law No. 177-FZ of December 23, 2003 on Insuring the Deposits of Natural Persons Made with Banks of the Russian Federation (hereinafter referred to as the Federal Law on Insuring Deposits of Natural Persons Made with Banks of the Russian Federation);
4) the claims of the Bank of Russia that have passed over to it in compliance with the federal law as a result of making payments by the Bank of Russia related to deposits of natural persons with banks declared bankrupt that do not participate in the system of obligatory insurance of natural persons' deposits made with banks of the Russian Federation.
4. The creditors' claims under the obligations secured by the property of a credit organisation put in pledge shall be satisfied predominantly in respect of other creditors at the expense of the cost of the property put in pledge, except for obligations in respect of the first-turn and second-turn creditors.
5. The claims of the natural persons who are creditors of a credit organisation under contracts of bank deposit and (or) contracts of bank account for repairing damages in the form of loss of profit, as well as for paying the amounts of financial sanctions shall be included into the composition of the creditors claims to be satisfied in the first turn.
6. Creditors' claims in respect of subordinate credits (deposits, loans, bonded debts) shall be satisfied after satisfying the claims of all other creditors included into the register of creditors' claims.

Article 50.37. Discharging Credit Organisation's Obligations by Founders (Stake-Holders) Thereof or by a Third Person (Third Persons) in the Course of Bankruptcy Proceedings

1. A credit organisation's founders (stake-holders) or a third person (third persons) shall be entitled at any time pending the termination of bankruptcy proceedings to discharge all the credit organisation's obligations or to provide the credit organisation with the monetary funds sufficient for discharging all the credit organisation's obligations as of the date of withdrawing the licence for conducting banking operations.
2. The founders (stake-holders) of a credit organisation or a third person (third persons) shall be obliged to notify the bankruptcy commissioner and creditors in writing on starting to discharge the credit organisation's obligations. After the bankruptcy commissioner's receiving the first such notice the discharge of the credit organisation's obligations in respect of creditors thereof by other persons shall not be acceptable. If the person directing a notice on starting to discharge a credit organisation's obligations has not started to discharge the said obligations within a one-week term as of the date of directing such notice or has not discharged the credit organisation's obligations in respect of creditors thereof within a three-month term in compliance with Item 4 of this Article, the said notice shall be deemed invalid.
The persons who have claimed to discharge a credit organisation's obligations and have not discharged the said obligations at the time and in the volume established by this Article shall be bound to repair the creditors' damages connected with the suspension of bankruptcy proceedings.
3. When discharging a credit organisation's obligations by founders (stake-holders) of the credit organisation or by a third person (third persons) or when they grant monetary funds to the credit organisation, creditors of the credit organisation shall be bound to accept the appropriate discharge of the obligations, while the credit organisation shall be bound to discharge its obligations in respect of creditors thereof at the expense of the funds granted to it.
Where it is impossible for a credit organisation to discharge its obligations on respect of creditors thereof in compliance with Item 1 of this Article and Paragraph One of this Item in connection with a creditor's failure to discharge his duties related to providing data on him that are necessary for making settlements with this creditor, as well as in the event of a creditor's avoidance of accepting the discharge of the credit organisation's obligations, the monetary funds may be deposited with a notary at the location of the credit organisation (branches thereof).
4. The monetary funds by which founders (stake-holders) of a credit organisation or a third person (third persons) have discharged the credit organisation's obligations in respect of its creditors or which they have granted to the credit organisation for discharging the said obligations shall be deemed granted to the credit organisation under the terms and conditions of a contract of interest-free loan whose term shall be determined by the time of claiming it but at the earliest on the finishing date of proceedings concerning the case of the credit organisation's bankruptcy.
5. In the event of discharging a credit organisation's obligations by founders (stake-holders) of a credit organisation or by a third person (third persons), the bankruptcy commissioner shall be obliged within 10 days to notify all the creditors whose claims are included in the register of creditors' claims on the discharge of obligations in respect of them and to enter onto the account opened with a credit organisation resident in the Russian Federation monetary funds in the amount necessary for the full discharge of the said obligations that is determined without taking into account the monetary funds kept on the credit organisation's account. The procedure for opening the said account shall be determined by normative acts of the Bank of Russia.
The notification of creditors mentioned above may be effected by way of publishing a report in a periodical at the location of the credit organisation (branches thereof).
6. The bankruptcy commissioner at the latest in 14 days as of the finishing date of discharging a credit organisation's obligations byfounders (stake-holders) thereof or by a third person (third persons) shall be obliged to direct to an arbitration court the report on the effected discharge of the credit organisation's obligations.
7. An arbitration court on the basis of the results of considering the report of the bankruptcy commissioner on the effected discharge of the credit organisation's obligations shall issue the ruling on termination of proceedings concerning the credit organisation's bankruptcy case in the event of discharging all obligations in respect of creditors thereof, including obligations under the claims raised.
8. In the event of terminating proceedings concerning a credit organisation's bankruptcy case for the reason provided for by Item 7 of this Article, the Bank of Russia on the basis of the application of the credit organisation, founders (stake-holders) of the credit organisation or a third person (third persons) who have discharged the credit organisation's obligations in respect of creditors thereof may decide within a one-month term on issuing to the credit organisation the licence for conducting banking operations. With this, the right of the Bank of Russia to issue to the said credit organisation the licence for conducting banking operations shall arise in the event of the concurrent adherence to the following terms:
1) if the extinction of the credit organisation's obligations provided for by Item 1 of this Article by decision of founders (stakeholders) of the credit organisation or of a third person (third persons) is be effected at the latest in six months as of the date of withdrawing the licence for conducting banking operations;
2) if an arbitration court confirms the extinction of all the credit organisation's obligations that have arisen on the date of withdrawing the licence for conducting banking operations;
3) if there are no claims raised by creditors after their notification in the procedure established by Item 5 of this Article;
4) if there is the certificate issued by an authorised body on the absence of the credit organisation's debts in respect of making mandatory payments;
5) if by the time of considering the above application all the requirements for issuing the licence for conducting banking operations advanced by the Bank of Russia in compliance with the Federal Law on Banks and Banking have been met.
9. In the event of failure of the Bank of Russia to decide within one-month term on issuing the licence for conducting banking operations or in the event of the refusal to issue the said licence, the credit organisation shall be subject to liquidation in compliance with the Federal Law on Banks and Banking.

Article 50.38. Specifics of Satisfying Claims of the First-Turn Creditors

1. Claims of the first-turn creditors shall be satisfied in two stages: by way of preliminary payments and by way of final payments. With this, by way of preliminary payments shall be satisfied claims of the first-turn creditors of the credit organisation which on the date of withdrawing the licence of the Bank of Russia was not a participant of the system of deposits' obligatory insurance in compliance with the Federal Law on Insuring Deposits of Natural Persons Made with Banks of the Russian Federation.
2. By way of final payments shall be satisfied claims of the first-turn creditors that have not been satisfied by way of making preliminary payments.
3. By way of making preliminary payments shall be satisfied claims of the first-turn creditors that are raised in compliance with this Federal Law within the time period of up to two months as of the date of the first publication of the report on declaring the credit organisation bankrupt and on starting bankruptcy proceedings.
Preliminary payments to the first-turn creditors shall start at the latest in 30 days as of the date of the expiry of the aforesaid time period for raising creditors' claims for the purpose of making preliminary payments and at the earliest in 10 days as of the date of publishing the announcement on the procedure for, and the terms of, making preliminary payments to the first-turn creditors and shall be made within three months as of the said date.
4. For making preliminary payments to the first-turn creditors shall be directed 70 per cent of the monetary funds on a credit organisation's accounts as of the date of the expiry of the time period for raising claims by the first-turn creditors for the purpose of making preliminary payments.
Where there are not enough monetary funds for satisfying in full claims of the first-turn creditors by way of making preliminary payments, these monetary funds shall be distributed in proportion to the amount of the claims subject to satisfaction.
The report on making preliminary payments to the first-turn creditors shall be presented by the bankruptcy commissioner to an arbitration court and to the Bank of Russian in the procedure established by the Bank of Russia at the latest in 10 days as of the date of the expiry of the time period for making preliminary payments.
5. The amount of claims of first-turn creditors shall be subject to reduction by the sum paid thereto by way of making preliminary payments, as well as by the sum of the insurance payments made by the Agency in compliance with the Federal Law on Insuring Natural Persons' Deposits Made with Banks of the Russian Federation and the payments of the Bank of Russia concerning deposits of natural persons made with bankrupt banks that do not participate in the system of mandatory insurance of natural persons' deposits made with banks of the Russian Federation and shall be shown in the register of registers' claims of the credit organisation declared bankrupt.
6. The claims of the first-turn creditors in the amount exceeding the sum of preliminary payments made, as well as the claims made after the finishing date for raising claims of the first-turn creditors for the purpose of making preliminary payments shall be satisfied in the procedure for making final payments subject to the rules provided for by Article 50.40 of this Federal Law.
7. The amount of claims of the citizens in respect of which a credit organisation is liable for causing damage to their life and health shall be determined by way of capitalising appropriate time payments established on the date of withdrawing the credit organisation's licence for conducting banking operations and payable to these citizens on their attaining the age of 70 years but at least for 10 years. The procedure for, and the terms of, capitalisation of appropriate time payments shall be determined by the Government of the Russian Federation.
If a citizen's age exceeds 70 years, the period of capitalisation of appropriate time payments shall be equal to 10 years.
8. Upon making capitalised time payments whose rate shall be determined in the procedure provided for by Item 7 of this Article the appropriate obligation of the credit organisation shall be terminated.
9. A citizen's right of claim against a credit organisation in the amount of capitalised time payments by his approbation shall lapse to the Russian Federation.
The said claim, in the event of the lapse thereof to the Russian Federation, shall be likewise satisfied in the first turn.
In this instance, the credit organisation's obligations in respect of the citizens that concern making capitalised time payments shall lapse to the Russian Federation and shall be discharged by the Russian Federation in compliance with the federal law in the procedure determined by the Government of the Russian Federation.
10. Claims for repairing moral damage shall be allowed in the amount established by a judicial act.

Article 50.39. Specifics of Satisfying Creditors' Claims in Respect of Subordinate Credits

1. Creditors' claims in respect of subordinate credits (deposits, loans, bonded debt), as well as in respect of the financial sanctions for failure to discharge obligations in respect of subordinate credits (deposits, loans, bonded debt) shall be satisfied after allowing the claims of all other creditors included into the register of creditors' claims.
2. For the purposes of this Federal Law, a subordinate credit (deposit, loan, bonded debt) shall mean the credit (deposit, loan, bonded debt) concurrently adhering to the following terms:
1) if the time period for granting the said credit (deposit, loan), the time period for the retirement of bonds is at least five years;
2) if the contract of credit (deposit, loan) contains a provision on the impossibility of the pre-schedule dissolution thereof and the registered terms of bonds' issue contain the provision on the impossibility of preschedule retirement of bonds, except for their use as payment for stocks (shares) of the credit organisation being the debtor;
3) if the terms of granting the said credit (deposit, loan) at the time of its granting do not essentially differ from the market terms of granting similar credits (deposits, loans) and the interest payable on bonds do not essentially differ from the average rate on interest on similar bonds at the time of their placement;
4) if the contract of credit (deposit, loan) or the terms of issuing bonds established by a registered decision on their issue contain the provision that in the event of the credit organisation's bankruptcy the claim in respect of this credit (deposit, loan) and in respect of these bonds are allowed after satisfying the claims of all other creditors.

Article 50.40. Settlements with Creditors in the Course of Bankruptcy Proceedings

1. The bankruptcy commissioner shall make settlements with creditors in compliance with the register of creditors' claims.
The settlements with creditors concerning the satisfaction of the claims included in the aforesaid register on the basis of copies of the documents specified in Item 1 of Article 50.28 of this Federal Law shall only be made upon presenting the originals of the documents proving the reasonableness of these claims.
The persons entitled under Article 50.37 of this Federal Law to discharge a credit organisation's obligations shall make settlements with creditors thereof in compliance with the register of creditors' claims.
2. Creditors' claims of each subsequent turn shall be satisfied after the complete satisfaction of creditors' claims of each preceding turn.
3. In the event of a creditor's avoidance of accepting monetary funds, these monetary funds shall be deposited by the bankruptcy commissioner with a notary at the location of the credit organisation(branches thereof), and the creditor shall be informed on it.
4. Where a credit organisation's monetary funds are not sufficient for allowing creditors' claims of one turn, the monetary funds shall be distributed between creditors of the appropriate turn in proportion to the sums of their claims included into the register of creditors' claims.
5. The creditors' claims made after closing the register of creditors' claims shall be allowed at the expense of the credit organisation's property left after satisfying the creditors' claims made within the established time period and included in the register of creditors' claims.
The settlements with creditors in respect of the said claims shall be made by the bankruptcy commissioner in the procedure established by this Article.
6. The claims of the first-turn creditors raised after closing the register of creditors' claims but prior to completing settlements with the first-turn creditors who made their claims within the established time period shall be subject to satisfaction before allowing the creditors' claims of the last turn. Pending the complete satisfaction of the said claims of the first-turn creditors, the satisfaction of claims of the last-turn creditors shall be suspended.
If such claims are made prior to completing settlements with the first-turn creditors, they shall be subject to satisfaction after completing settlements with the first-turn creditors who raised their claims within the established time period, in the presence of monetary funds for their satisfaction.
7. In the procedure stipulated by Item 6 of this Article shall be satisfied the claims of the first-turn creditors raised prior to closing the register of creditors' claims but established in the procedure provided for by Subitems 2 to 4 of Item 3 of Article 50.28 of this Federal Law accordingly:
1) before completing settlements with all creditors but after completing settlements with first-turn creditors whose claims were established prior to the start of making settlements with them;
2) before making settlements with first-turn creditors whose claims were established before the start of making settlements with them.
8. The claims of second-turn creditors raised before completing settlements with all creditors, and also after closing the register of creditors' claims, shall be subject to satisfaction in the procedure similar to that established by Item 6 of this Article.
9. In the presence of disputes between the bankruptcy commissioner and a creditor that are being considered by an arbitration court on the date of starting settlements with creditors of the appropriate turn, the bankruptcy commissioner upon request of the creditor advanced before closing the register of creditors' claims shall be obliged to reserve monetary funds in the amount sufficient for the proportionate satisfaction of claims of the appropriate creditor.
10. As discharged ones shall be deemed the satisfied claims of creditors, as well as those claims in respect of which there are other grounds for terminating obligations.
The creditors' claims not satisfied because of the insufficiency of a credit organisation's property shall be likewise deemed discharged.
The discharge of creditors' claims by way of making an agreement on indemnity, on a claim's innovation, as well as by way of discounting claims in the course of bankruptcy proceedings when credit organisations go bankrupt shall both be allowable.
11. The bankruptcy commissioner shall enter to the register of creditors' claims data on discharging creditors' claims.
12. Data on discharging creditors' claims of each turn shall be directed to the Bank of Russia at the latest in five days as of the date of finishing settlements with creditors of the appropriate turn.

Article 50.41. Liability of a Third Person for Illegal Obtaining of a Credit Organisation's Property

1. The creditor whose claims have not been satisfied in full due to insufficiency of a credit organisation's property for it shall enjoy the right of claim against a third person, and also against other creditor who has unlawfully obtained the credit organisation's property.
The creditor whose claims have not been satisfied in full due to the insufficiency of a credit organisation's property shall be entitled to make a claim with a court of law, an arbitration court or an arbitral tribunal for obtaining on demand the credit organisation's property that has been unlawfully obtained and for levying execution against the said property in the amount of the claims that remained not discharged in the course of bankruptcy proceedings.
The unlawfulness of a third person's obtaining of a credit organisation's property shall be established by a court of law, an arbitration court or an arbitral tribunal by way of invalidating the transaction under which the credit organisation's property has been transferred to the third person and for other reasons established by the laws of the Russian Federation.
2. In the event of satisfying by a court of law, an arbitration court or an arbitral tribunal the claims raised, the creditor whose claims have not been allowed in full due to the insufficiency of a credit organisation's property shall become the beneficiary in respect of the said property, regardless of the reasons for which the third person's obtaining of the credit organisation's property was declared unlawful. In the absence of the said property or on the application of the third person, a court of law, an arbitration court or an arbitral tribunal shall be entitled to satisfy the claim of this creditor by way of recovering the appropriate amount without levying execution against the credit organisation's property.
The disposal (sale) of the property against which execution is levied shall be effected by way of the public sale thereof in the procedure established by the procedural legislation of the Russian Federation.
3. The claims provided for by Item 1 of this Article may be raised within 10 years as of the date of completing proceedings that concern the bankruptcy case, regardless of the reasons for which a third person's obtaining of a credit organisation's property is unlawful.

Article 50.42. Interim Liquidation Balance Sheet and Liquidation Balance Sheet

1. After drawing up and closing the register of creditors' claims, the bankruptcy commissioner at the latest in six months as of the date of staring bankruptcy proceedings, shall draw up the interim liquidation balance sheet containing the date on the property composition of the credit organisation to be liquidated, the list of claims raised by creditors, as well as data on making preliminary payments to the first-turn creditors. The time period for drawing up the register of creditors' claims and the time period for drawing up the interim liquidation balance sheet may be extended by an arbitration court on the application of the bankruptcy commissioner.
2. The interim liquidation balance sheet and the liquidation balance sheet shall be drawn up in compliance with normative acts of the Bank of Russia and shall be presented to the Bank of Russia for coordination. The time period for coordination by the Bank of Russia of the interim liquidation balance sheet and the liquidation balance sheet may not exceed 30 days as of the date of receiving by the Bank of Russia the documents established by normative acts of the Bank of Russia.

Article 50.43. Report of the Bankruptcy Commissioner on the Results of Carrying out Bankruptcy Proceedings

1. After completing settlements with creditors, coordinating the liquidation balance sheet, and after terminating proceedings on a bankruptcy case in the instance provided for by Subitem 2 of Item 1 of Article 50.13 of this Federal Law, the bankruptcy commissioner shall be obliged to present to an arbitration court the report on the results of carrying out bankruptcy proceedings.
2. The following shall be attached to the report of the bankruptcy commissioner on the results of carrying out bankruptcy proceedings:
1) the liquidation balance sheet;
2) the documents proving the disposal of the credit organisation's property and the reasons for writing off the property;
3) the register of creditors' claims with the indication of the amount of discharged creditors' claims.

Article 50.44. Finishing Bankruptcy Proceedings

1. An arbitration court, after consideration by an arbitration court of the bankruptcy commissioner's report on the results of carrying out bankruptcy proceedings, shall issue the ruling on finishing the bankruptcy proceedings or, in the event of discharging creditors' claims in compliance with

Article 50.37 of this Federal Law, the ruling on termination of bankruptcy proceedings that shall be directed to the bankruptcy commissioner and to the Bank of Russia.

The ruling on finishing bankruptcy proceedings and the ruling on termination of bankruptcy proceedings shall be subject to immediate execution.
In the event of issuing the ruling on terminating bankruptcy proceedings, the decision of an arbitration court on declaring a credit organisation bankrupt and on starting bankruptcy proceedings shall not be subject to further execution.
2. The bankruptcy commissioner shall be obliged within a thirty-day term as of the date of issuing the ruling on finishing bankruptcy proceedings to direct to the Bank of Russia the ruling of the arbitration court and other documents in compliance with Federal Law No. 129-FZ of August 8, 2001 on the State Registration of Legal Entities and Individual Businessmen (hereinafter referred to as the Federal Law on the State Registration of Legal Entities and Individual Businessmen) and the Federal Law on Banks and Banking.
3. Data on the state registration of a credit organisation in connection with the liquidation thereof shall be entered to the comprehensive state register of legal entities in the procedure provided for by the Federal Law on the State Registration of Legal Entities and Individual Businessmen subject to the specifics of the said registration established by the Federal Law on Banks and Banking.

Chapter VII. Peculiarities of Declaring Bankrupt a Credit Institution Being Liquidated and a Missing Credit Institution

Article 51. Declaring Bankrupt a Credit Institution Being Liquidated

1. If the value of property of a credit organisation being liquidated is not sufficient to satisfy the claims of the credit institution's creditors, such credit organisation shall be liquidated in the procedure stipulated by this Federal Law.
2. If the event covered by Item 1 of the present Article occurs, the credit institution's creditors and the Bank of Russia shall have the right to file an application to declare bankrupt the credit institution being liquidated.
3. If the event covered by Item 1 of the present Article occurs, the liquidation commission (the liquidator) of the credit institution being liquidated shall be obligated within a ten-day term to file with the Arbitration Court an application to declare bankrupt the credit institution being liquidated.
4. The Arbitration Court shall appoint a court session to declare bankrupt the credit institution being liquidated on the basis of an application filed by persons specified in Items 2 and 3 of the present Article within one month after the Arbitration Court rules to accept the aforementioned application.

Article 52. Bankruptcy of a Missing Credit Organisation

1. In the instances when a credit organisation being the debtor has actually terminated its activities, is missing or it is impossible to locate it or its leadership, the application for declaring such credit organisation bankrupt may be filed by a bankruptcy creditor, an authorised body, as well as by the Bank of Russia, regardless of the amount of the bills payable.
2. An arbitration court within a thirty-day term as of the date of taking over the application for declaring a missing credit organisation bankrupt shall decide on declaring the missing credit organisation being the debtor bankrupt and on starting bankruptcy proceedings. The Agency shall be approved as the bankruptcy commissioner of the missing credit organisation.
The Agency shall not be remunerated for exercising the authority of the bankruptcy commissioner of a missing credit organisation being the debtor.
3. The bankruptcy commissioner shall notify in writing of the bankruptcy of a missing credit organisation all this credit organisation's creditors known to him that may put in their claims to the bankruptcy commissioner within a thirty-day term as of the date of receiving the said notice.
4. An arbitration court may issue on the application of the bankruptcy commissioner, in the event of his detecting the property of a missing credit organisation being the debtor, the ruling on terminating simplified bankruptcy proceedings and on the transfer to the bankruptcy proceedings provided for by this Federal Law.
5. Claims of creditors of a missing credit organisation being the debtor shall be satisfied in the order provided for by Article 50.36 of this Federal Law. With this, the court costs shall be covered out of turn.
6. The decision of an arbitration court to declare bankrupt a missing credit organisation shall be directed to the Bank of Russia, as well as to the federal executive body engaged in the state registration of legal entities, which shall make an entry to the comprehensive state register of legal entities to the effect that the credit organisation in being liquidated.

Chapter VIII. Concluding Provisions

Abolished.

President
of the Russian Federation  B.Yeltsin

The Kremlin, Moscow
No. 40-FZ
February 25, 1999

Translation from Russian into English by NPP «Garant-Servis» company (phone.: 247-62-38, www.garant.ru)

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