On July 28, 2012, Russian president Vladimir Putin gave his
imprimatur to Federal Law No. 144-FZ, which amends Russian
bankruptcy, financial, and banking legislation with the goal of
improving regulations governing asset returns and interim
management of insolvent banks. Among other things, the amendments
change Russian insolvency law to remove executive compensation and
bonuses from the list of priority claims in cases involving
insolvent companies. The new law amends regulations governing
interim administrations of financial and banking entities that have
forfeited their operational licenses, and it also revises the
powers of the Russian federal deposit insurance agency.
The new legislation amends Articles 5, 20.7, 61.2, 99,
110–111, 115, 126, 129–130, 132, 134, 136, 139, and 143
of Federal Law No. 127-FZ on insolvency (bankruptcy) dated October
26, 2002 (the "Bankruptcy Law"). The amendments alter
provisions in the Bankruptcy Law governing creditor claims, interim
management during insolvency proceedings, the return of client
assets, and evaluation of a banking entity's assets during
The new law also adds a provision to Federal Law No. 40-FZ
(February 25, 1999), which governs insolvency proceedings of credit
entities. New Article 22.2 sets forth regulations for interim
administration of insolvent banks. Article 20 of Federal Law No.
17-FZ (February 3, 1996) was also amended to add provisions
designed to ensure, in proceedings involving insolvent banks, the
return to clients of securities and other assets acquired by the
banks on behalf of clients in accordance with trust management and
brokerage contracts. In addition, Article 40.1 of Federal Law No.
17-FZ was amended to set forth requirements designed to ensure the
safety of records and databases of insolvent banks.
The new law was adopted on July 13 by the State Duma, the lower
house of parliament, and on July 18 by the Federation Council, the
upper house of parliament. It takes effect 90 days after its
official publication on August 1, 2012.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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