On the introduction of the provisions related to pledge of movables

25.05.2015 Hereby the Subsidiary Organization JSC VTB Bank (Kazakhstan) informs you about the introduction of the following provisions related to the pledge of movable property:

Paragraph 1 of article 307 of the Civil Code of the Republic of Kazakhstan was amended by the Law of the Republic of Kazakhstan dated April 22, 2015 No. 308-V "On making amendments and additions to some legislative acts of the Republic of Kazakhstan relating to the issues of limitation of the state involvement in entrepreneurial activity” and the Law of the Republic of Kazakhstan dated December 29, 2014 No. 269-V "On making amendments and additions to some legislative acts of the Republic of Kazakhstan on issues of cardinal improvement of the conditions for entrepreneurial activity in the Republic of Kazakhstan” in terms of the need to specify in the pledge contract the pledged property and its assessment, substance, size, or maximum amount and period for performance of the obligation secured by the pledge. It should also contain an indication regarding which of the parties is in possession of the pledged property and the permissibility of its use. By agreement of the parties, the movable property and (or) individual categories of movable property (including machinery and stocks of material circulating assets) that are the subject of pledge may have a general description of the pledged property without requiring a specific description of the collateral.

Paragraph 1 of article 309 the Civil Code of the Republic of Kazakhstan was amended by the law of Republic of Kazakhstan dated December 29, 2014 No. 269-V "On making amendments and additions to some legislative acts of the Republic of Kazakhstan on issues of cardinal improvement of conditions for entrepreneurial activity in the Republic of Kazakhstan" and these amendments stipulate that in cases specified by the contract or legislative acts, the right of pledge can cover separable fruits , products and profits obtained from the use of the pledged property, as well as subsequently acquired assets and replaced assets.