Monitoring of the Federal Legislation dated 25.04.2006

Decision of the Government of the Russian Federation No. 233 of April 21, 2006 on the Requirements to the Amount of Own Monetary Resources of the Construction Party, Procedure of Calculation of the Amount of These Resources, As Well As the Normatives of Assessment of Financial Stability of Activities of the Construction Party

Assessment of the financial stability of activities of the construction party is made using three normatives: normative of security of obligations, normative of use of resources for designated purposes and the normative of absence of losses. A general procedure of calculation of these normatives is specified.

The minimum amount of own monetary resources of the construction party attracting monetary resources of participants of shared construction must make 7% of resources attracted on the basis of contracts of participation in the shared construction.

Calculation of the amount of own monetary resources and the normatives of assessment of financial stability of the construction party is made by the construction party itself according to the Instruction endorsed by the Federal Service for Financial Markets of Russia in coordination with the Ministry of Finance of Russia. Assessment of financial stability of activities of the construction party according to the normative of absence of losses shall be made on the annual basis, for other normative - on the quarterly basis. Calculation of the amount of own monetary resources of the construction party shall be made also on the quarterly basis.

The construction party bears responsibility for the failure to observe the requirements to the amount of own monetary resources, as well as specified normatives of assessment of financial stability of its activities. In particular, activities of the construction party attracting monetary resources of participants of shared construction may be suspended if the amount of own resources of the construction party is lower than the specified minimum values.

The mentioned normatives and the minimum amount of own monetary resources are entered into force from January 1, 2007.

Direction of the Central Bank of Russia No. 1671-U of March 20, 2006 on the Amendments to the Regulation of the Bank of Russia No. 254-P of March 26, 2004 on the Procedure of Forming Reserves for Possible Losses by Credit Organisations for Loans, Debts in Loans and Similar Debts

Increases five times the amount of loans recognised insignificant for the purposes of the Regulation of the Bank of Russia No. 254-P of March 26, 2004 where credit organisations might form a reserve for the portfolio of similar loans. The signs of insignificance of the amounts of loans are still determined by the credit organisation independently within the limits of up to 0.5% (earlier, up to 0.1%) of the amount of own resources (capital).

Category I security includes a deposit (contribution) placed in the creditor credit organisation of the legal entity that has unfulfilled monetary obligations to the credit organisation or obligations having emerged (that may emerge) as a result of execution by the credit organisation of assumed conditional obligation of credit nature, as well as a deposit (contribution) placed in the creditor credit organisation of a legal entity that has obligations to the credit organisation under a trusteeship contract or because of the bank guarantee securing an appropriate execution of the main obligations while fulfilling simultaneously a number of conditions.

The Direction is entered into force from June 1, 2006.

Registered in the Ministry of Justice of the Russian Federation on April 20, 2006. Reg. No. 7728.

Direction of the Central Bank of Russia No. 1669-U of March 10, 2006 on the Invalidation of Individual Normative Acts of the Bank of Russia

Pursuant to the adoption of the Instruction of the Bank of Russia No. 128-I of March 10, 2006 on the rules of issue and registration of securities by credit organisations on the territory of the Russian Federation, invalidates the Instruction of the Bank of Russia of the same name No. 102-I of July 22, 2002.

The Direction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on April 20, 2006. Reg. No. 7726.

Order of the Ministry of Justice of the Russian Federation and the Ministry of Education and Science of the Russian Federation No. 61/70 of March 27, 2006 on the Endorsement of the Regulation on the Organisation of Work to Provide the Main General and the Secondary (Full) General Education to Persons Serving the Term in the Form of Imprisonment in Corrective Colonies and Prisons of the Criminal Execution System

The right of convicts to get education is guaranteed by creation of evening (shift) institutions of general education (evening (shift) schools of general education, advice points) in corrective colonies and prisons of the criminal execution system. The schools are created, reorganised and liquidated by the bodies of executive power of the subjects of the Russian Federation in coordination with the Ministry of Justice of Russia.

The study is arranged on the basis of contracts concluded between schools and institutions of the criminal execution system. The institution shall keep records of convicts that must undergo studies on the obligatory basis, as well as those wishing to upgrade their educational level; provide for conditions for the educational process; allocate servicing personnel for the schools; arrange services for the students during the days of study, purchase of foodstuffs and first-necessity items for them; help school employees to muster the documents regulating activities of the institution; control observation by school employees of regime requirements available in the institution; ensure security of school employees when they are present on the territory of the institution.

The school, in turn, shall carry out together with the administration of the institution necessary work to ensure the rights of convicts for the main general and secondary (full) general education; organise educational process according to educational schedules and programs taking into account the particulars of the regime of detention of students, introduce modern pedagogical technologies; render aid to students - to prepare for the lessons, master methods of self-education; to the administration of the institution - in education of convicts, their social adaptation; petition to the administration of the institution to provide incentives to students for successful studies and discipline; make proposals to the administration of the institution to provide conditions for students; provide for observation by the teaching staff of regime requirements available in the institution.

Obligatory study pertains to convicts under 30 years of age that do not have the main general education. Convicts older than 30 and group I and II invalids may get the main general and secondary (full) general education if they desire. Those convicted for life-time imprisonment do not participate. Conditions for self-education may be created for them if these do not contradict the terms of punishment.

The procedure of admission of convicts to school, as well as individual issues of study and state certification are defined in the Regulation.

Registered in the Ministry of Justice of the Russian Federation on April 19, 2006. Reg. No. 7724.

Instruction of the Central Bank of Russia No. 128-I of March 10, 2006 on the Rules of Issue and Registration of Securities by Credit Organisations on the Territory of the Russian Federation

Specifies the new rules of issue and state registration of stocks, bonds and other emission securities by credit organisations on the territory of the Russian Federation.

As compared to the earlier available rules specified in Instruction of the Bank of Russia No. 102-I of July 22, 2002, the new Instruction has provisions reflecting the changes of the procedure of issue and registration of securities specified in the federal legislation. In particular, conditions for public placing of securities are created (IPO), provisions are introduced to pay the state duty for the actions pertaining to the state registration of issues of emission securities. The requirement of obligatory signing of the securities prospectus by the financial advisor is abandoned, and for residents, opportunities of payment for securities in foreign currencies are excluded (except for the payment for the stocks of the issuer credit organisation being an authorised bank by another authorised bank in its own name and at own expense).

The Instruction includes provisions defining the procedure of issue and registration of mortgage securities by issuer credit organisations according to the requirements of the Federal Law on mortgage securities.

Procedure of issue of securities and registration of issues of securities is made uniform in compliance with the normative acts of the Federal Service for Financial Markets.

The minimum volume of issues of securities subject to registration in the Department of Licensing of Activities and Financial Rehabilitation of Credit Organisations is increased to Rbl 1 bn from Rbl 700 mn for the issue of stocks and from Rbl 200 mn for the issue of bonds.

The Instruction is entered into force 10 days after the day of its official publication in the Herald of the Bank of Russia.

Registered in the Ministry of Justice of the Russian Federation on April 13, 2006. Reg. No. 7687.

Information Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 107 of April 11, 2006 on Some Issues of Application of Provisions of Article 28 of the Federal Law on Obligatory Pension Insurance in the Russian Federation

The Presidium of the Higher Arbitration Court of the Russian Federation explains the procedure of collection from independent entrepreneurs of insurance contributions for obligatory pension insurance. Thus, when collecting arrears through court, it is necessary to take into account the circumstances of exclusive nature that did not permit the entrepreneur to apply in due time for the state registration of termination of entrepreneurial activities. In the presence of such circumstances, arrears for the period when entrepreneurial activities were actually not available may be omitted.

Independent entrepreneurs born in 1966 and older must transfer as insurance contributions only part of the fixed payment, which is allocated to finance the insured part of the labour pension. Insurance contributions in the form of a fixed payment are not paid if entrepreneurial activities were not available in the periods that are not included in the insured length of service according to the Federal Law on labour pensions in the Russian Federation.