ON PROCEDURE AND RULES OF
BANKING OPERATIONS FOR RESERVE INTERSTATE BANK
ON THE TERRITORY THE COUNTRY
The National (Central) Bank of the Country and the Reserve Interstate Bank, pursuant to the Articles of Association of the Reserve Interstate Bank and taking into account the Agreement between the Reserve Interstate Bank and the Country Government on the Conditions of Residence of the Reserve Interstate Bank in the territory of the Country, dated “____” ___________ 2019 as well as generally recognized rules and principles of international banking practice, now hereby have agreed as follows:
Section I. TERMS
For the purposes of this Agreement:
а) The Bank the Country – the National (Central) Bank of the Country;
b) The Bank – Reserve Interstate Bank;
c) Foreign currency – a monetary unit of any country except for the national monetary unit of the Country.
d) Officials of the Bank shall mean the President of the Bank, his/her deputies and other officials, determined by the Board of the Bank.
Section II. INTERPRETATION
This Agreement between the Bank of the Country and the Bank is concluded in accordance with the Protocol of the Terms of Business of the Reserve Interstate Bank in member-states and shall specify the main provisions regulating banking operations and other transactions of the Bank in the territory of the Country.
Section III. BANKING OPERATIONS AND OTHER TRANSACTIONS OF THE BANK
Banking operations shall mean the complex of active and passive transactions performed by the Bank.
The Bank and its standalone subdivisions (branches, departments, bank subsidiaries or other forms of banking institutions permitted by laws of the Country) shall have the right on the territory of the Country:
– to open all types of accounts applied in the international banking practice with credit institutions without limitation, in currency the Country, and foreign currency. To establish direct correspondent relations with the banks – non-residents under the legislation of the Country without limitations;
– to open and operate all types of accounts to legal entities, residents and non-residents being such under the law of the Country, including the banks–correspondents, in currency the Country and in foreign currency. To establish direct correspondent relations with the banks – non-residents under the legislation of the Country;
– to open and operate all types of accounts in currency of the Country and foreign currency to individuals working in member-states to the agreement in accordance with interstate (intergovernmental) agreements (treaties) ratified by legislative bodies of the Country, having in this connection the status of international agreements (treaties), as well as to provide cash management services by the above-mentioned accounts without restrictions;
– to attract corporate funds into deposits, conduct settlement, cash, and credit operations, accept government securities of the Country and other values for safekeeping both in currency of the Country and in foreign currency;
– freely transfer, take out and send forward currency values from the Country, without restriction, in accordance with customs regulations if such currency values has been transferred, taken out, sent earlier to the Country or acquired in the Country pursuant to the procedure established by the Bank of the Country and in other cases in accordance with the legislation of the Country;
– to carry out transactions with the government securities of the Country on the primary and secondary markets as a dealer. The Bank shall have the right to invest in government securities of the Country without limitations;
– to carry out transactions with securities by the resolution of the Board of the Reserve Interstate;
– to purchase and sell national currencies of member-states to the agreement, as well as to conduct conversion operations with such currencies in Interbank Currency Exchange in accordance with the Rules for carrying out currency transactions approved by the relevant exchange committees as well as in inter-bank market on a contractual basis without limitations;
– to buy, sell and exchange foreign currency on a cash and non-cash basis, as well as payment documents and liabilities in foreign currency in accordance with generally recognized standards and rules accepted in international banking practice. For financing the costs (expenses) for activities (work) stipulated by interstate (intergovernmental) agreements (treaties) ratified by the legislative bodies of the Country and having therefore the status of international agreements (treaties), the Bank shall have the right to conduct foreign currency conversion transactions in the interbank foreign exchange market without restrictions;
– to issue, buy, pay for, accept, keep and validate payment documents (cheques, letters of credit, bills, travelers’ cheques, and other documents);
– to acquire rights of claim on supply of goods and services, to accept risks of fulfillment of such claims, and to call in (forfeiting), as well as to buy and sell debt instruments (factoring);
– by the resolution of the Board of the Reserve Interstate Bank, to issue and accept guarantees and sureties in accordance with generally recognized norms and rules accepted in international banking practice;
– to provide services involving the safe keeping of precious metals, gemstones, and articles thereof, foreign currency, securities, documents;
– to buy and sell precious metals and gemstones and manage them as assets;
– to deposit funds not immediately required with other credit institutions;
– to render technical assistance in preparation, financing, and implementation of investment projects and programs;
– to perform leasing operations;
– to provide consulting services and assistance, information exchange within the scope of purposes and tasks of the Reserve Interstate Bank;
– to perform operations with financial instruments used for financial risks management;
– to perform other types of operations and services by the resolution of the Board of the Reserve Interstate Bank.
The Bank shall be entitled to perform banking operations and transactions in the currency of the Country –__________, and foreign currency with collection of commission fees according to the approved tariffs.
The Bank shall not be entitled to carry out production, trading, or insurance activity.
Section IV. THE BANK’S ACTIVITY IN THE SECURITIES MARKET
The Bank’s activity in the securities market shall be understood as the Bank’s execution of transactions related to the circulation of securities in the financial market.
The Bank shall be entitled to issue, purchase, sell, account, keep, and deal otherwise with securities serving as payment documents, securities confirming attraction of funds to deposits and to bank accounts, and it shall have the right, without special permission, to be a trustee of such securities under the contracts with legal entities. The Bank shall be a trustee of such securities under a contract with legal entities on the basis of a license of the authorized body.
Section V. THE BANK’S INVESTMENT ACTIVITY
The Bank’s investment activity shall mean all types of property, financial, intellectual valuables invested by the Bank in the territory of the Country in any business ventures or other activities in order to generate income.
The Bank shall perform investment activity in the territory of the Country, facilitate lending and financing of international projects and programs in coordination with the Bank of the Country, commercial banks of the Country, and international financial organizations. The Bank shall be entitled to participate in capital of enterprises, institutions, and organizations located in the territory of the Country. For these purposes, the Bank shall be entitled to create leasing and investment companies, funds, operate in securities markets.
Section VI. FINANCIAL PROCEDURES
The financial procedures shall be understood as the Bank’s established procedure for conducting financial activities.
The Bank shall be entitled, without hindrance:
а) to acquire any funds, currency, financial documents, and securities, to keep and dispose thereof, to have accounts in any currency, to participate in financial transactions and make financial contracts;
b) to transfer its own funds, currency, financial documents, and securities to or from the Country, or any other country, or within the limits of the Country, and to convert its own currency into any other currency.
Section VII. PAYMENTS SETTLEMENT
The Bank shall perform settlements according to the rules and forms applied in international banking practice; in the absence of rules for performing certain types of settlements, such settlements shall be performed upon agreement with the Bank’s customers as prescribed by the rules accepted in international banking practice.
The Bank of the Country shall integrate the Bank into the system of interbank settlements and protection of bank information against unauthorized access, in force in the territory of the Country, with the assignment of a bank identification code.
The Bank of the Country shall open for the Bank all types of correspondent accounts applied in the international banking practice.
Section VIII. SUPERVISION AND REGULATION OF THE BANK’S ACTIVITY
Supervision over the Bank’s activity, the activity of its branches, representative offices, and other standalone subdivisions in the territory of the Country shall be performed by the Bank of the Country in accordance with laws of the Country.
The Bank shall publicly release its annual reports.
Section IX. DISPUTES RESOLUTION
Any dispute between the Bank of the Country and the Bank as to interpretation or application of this Agreement, or any supplementary agreements, or any matter involving the Bank or relations between the Country and the Bank which shall not be settled by negotiations or any other agreed form of settlement shall be submitted, on the request of any of the Parties, for final decision to the arbitration court consisting of three arbitrators: one arbitrator shall be appointed by the Bank of the Country, the second shall be appointed by the Bank within one month from the request for arbitration, and the third arbitrator, who shall be the chairman of the arbitration court, shall be chosen by the first two arbitrators. If the first two arbitrators fail to agree on the candidacy of the third arbitrator within one month from submission of the request for arbitration, the third arbitrator shall be appointed by the Board of the Bank. The majority of votes of arbitrators shall be sufficient for taking the decision which will be final and binding. The third arbitrator shall be authorized to resolve all procedural questions in any case when there is disagreement.
Section X. FINAL PROVISIONS, COMING INTO FORCE AND TERMINATION
Any changes and amendments to this Agreement or promulgation of a new regulation or supplement regulating the operation of the articles of this Agreement shall be formalized as additional protocols and shall not entail suspension of the operation of the Agreement as a whole or of its separate parts.
This Agreement shall not affect any provisions of other agreements, including the international ones, to which the Bank of the Country and the Bank are the parties.
This Agreement is made for an indefinite period until one of the Parties notifies the other Party in writing of its intention to terminate its operation not later than six. In the event of such termination, this Agreement shall become invalid after the expiration of the period reasonably required for the settlement of the Bank’s affairs in the Country.
The Bank of the Country a and the Reserve Interstate Bank undertake to inform each other in reasonable time of any changes in the host countries’ legislation regulating economic, legal and bank relations (affecting in whole or in part the subject matter of this Agreement).
This Agreement shall come into force upon its signing.
Done in Signing city (capital) on __________ 2019 in two original copies in Russian and other national language of the State having equal legal force. One copy of the Agreement shall be kept in the National (Central) Bank of the Country, another – in the Reserve Interstate Bank.