The lawdraft About modification and additions in Federal law About insolvency (bankruptcy)

1. The lawdraft About modification and additions in Federal law About insolvency (bankruptcy) (regarding bankruptcy of the credit institutions)

2. The current legislation • Features are established for • Credit institutions (Federal law About an insolvency (bankruptcy) of credit organizations) • Insurance organizations and professional participants of securities market (The separate chapter the Federal law About an insolvency (bankruptcy))

3. The current legislation • Features which are established for credit institutions : • The pre-trial prevention of bankruptcy (the provisional administration) • The special insolvency practitioner for banks which attract deposits of private persons – Deposit Insurance Agency • The special order of satisfying creditors' claims in the course of bankruptcy proceedings (in the first turn shall be satisfied – the claims of the natural persons, the Agency's and Bank's of Russia claims under contracts of bank deposit and bank account passed over) • Features which are establishedfor insurance organizations and professional participants of securities market • Participation in a bankruptcy proceedings of state supervisory body; • The special order of satisfying creditors' claims; • Features of organisation bankrupt estate (credit organisation's clients monetary funds are not included in thebankrupt estate).

4. The purposes of the lawdraft • Minimization of risks • Protection of the creditors' interests

5. Executive summary of the lawdraft • The project offers to consider as financial the following organizations: • credit institutions (Federal law About an insolvency (bankruptcy) of credit organisations); • insurance organizations; • professional participants of securities market; • management companies of investment funds, unit investment trusts and private pension funds; • private pension funds.

6. Executive summary of the lawdraft • Measures directed for preventing bankruptcy • Elaboration and realization of the restoration of solvency plan (measures to secure repayment of overdue accounts receivable, change of the structure of assets and the structure of liabilities); • Appointing a provisional administration; • Other measures.

7. Executive summary of the lawdraft The bases for application of bankruptcy prevention measures • Reiterated refusal or reiterated delay within a month in satisfaction of creditors’ claims • Default of a duty on payment obligatory payments in time over ten days from the date approaching of date its execution owing to absence or insufficiency of money resources on the financial organization’s accounts

8. Executive summary of the lawdraft Evidence of bankruptcy Obligations in the sum more than 10 000 rubles are not executed during 14 days The cost a credit organisation's property (assets) is insufficient for discharging the credit organisation's obligations with regard to creditors and for making mandatory payments.

9. Features for insurance organizations Grounds for performing prevention measures • 1. The general grounds stipulated for financial organizations • 2. Special grounds: • reducing the amount of property (assets) of the insurance organisation and creditors' claims below a level established the official insurance by state regulative body • change of the structure of assets if as a result of such change the structure of assets is not corresponded to the law • suspension or revocation of the insurance organization license

10. Features for insurance organizations Grounds for appointing provisional administration • 1. Suspension of the insurance organisation license • 2.Suspension of the insurance organisation license in case of: • realization by the subject of insurance business the activity forbidden by the legislation, and also activity with infringement of the conditions established for licensing • non-observance by the insurance organisation the insurance legislation regarding formation and accommodation of means of insurance reserves, other insurance payments of funds guaranteeing realization • non-observance by the insurance organization of the established requirements to maintenance of a normative parity of actives and the accepted obligations, other established requirements to maintenance of financial stability

11. Features for insurance organizations Features of satisfaction creditors’ claims of the third turn 1. The first turn - requirements of insured persons, under contracts of obligatory insurance, and also the requirements connected with compensation of the sums of compensatory payments and other charges, connected with compensatory payments, under contracts of obligatory insurance; 2. The second turn - requirements of insured persons under contracts of life insurance and personal insurance; 3. The third turn – requirements of insured persons under contracts of property insurance; 4. The fourth turn - requirements of other creditors.

12. Features for insurance organizations Sale of an insurance organization property and handover of an insurance portfolio • in view of requirements of the federal laws adjusting insurance activity • only insurance organization having the license for realization of the corresponding kind of insurance can act as the buyer • sale of property is carried out together with an insurance portfolio of a corresponding kind of insurance • sale of a property complex is carried out at the tenders

13. Features for insurance organizations Insurance portfolio • Obligations under contracts of insurance by a separate kind of insurance or the several kinds of insurance known for date of decision-making on transfer of an insurance portfolio according to the current legislation, adjusting insurance activity • The assets accepted in a covering of insurance reserves, generated by the insurer by a separate kind (kinds) of the insurance, detached from reserves by other kinds of insurance

14. Features for insurance organizations Features for the conclusion of the agreement of lawsuit during procedures of bankruptcy of the insurance organization The general conditions : Repayment of debts under requirements of creditors of the first and second turn Additional conditions for the insurance organizations: Repayment of debts under requirements of insured persons (beneficiaries), insured by of obligatory insurance

15. Thank you for attention!