Law on Savings and Credit Associations


CHAPTER I.
GENERAL PROVISIONS


ARTICLE  1. PURPOSE AND OBJECT OF THE PRESENT LAW 
(1) The purpose of this Law is to protect legal rights and interests of members of savings and credit associations.
(2) The object of this Law is regulation of relations established as a result of exercising the right of persons of free association through establishment of savings and credit associations. 

ARTICLE  2. AREA OF EXTENSION
(1)    This law applies to savings and credit associations.
(2)    The Laws and normative acts regulating the activity of financial institutions and public associations do not apply to savings and credit associations.

ARTICLE 3. BASIC TERMS
For purposes of this Law, the following basic terms are defined:
a)    Administrator – board member, censor’s committee member, executive director, chief accountant, chief of the branch as well as other persons invested with the power to assume obligations by themselves or jointly with others in the name and account of the association;
b)    Central Association – savings and credit association of which founders and members can be only savings and credit associations and which operates on the basis of this Law;
c)    Savings and Credit Association (hereinafter - Association)  - is a non-commercial organization, with a special legal status, constituted by common bond voluntarily by physical and legal entities, accepts savings deposits from its members, provides loans to its members, as well as other financial services,  in accordance with the category of license held;
d)    Supervisory authority – public authority exercising regulation and supervision of associations, including central associations, in accordance with legislation.
e)    Institutional capital – own funds that the association must have and maintain in accordance with this law and the normative acts of the supervisory authority;
f)    Savings deposits – amount of money deposited in the association by the member based on a written contract, on a specified term or on demand, with or without interest, which is to be reimbursed on maturity or on demand;
g)    Liquidity pool – fund constituted of means of the associations that accept savings deposits from their members, in the amount and modality established by supervisory authority, constituted in order to provide associations with liquidities in a centralized manner;
h)    Stabilization fund – cash fund, centralized for the SCA system, providing assistance to SCAs, constituted, managed and used in accordance with the normative acts of the supervisory authority;
i)    Stabilization measure – measure applied by the supervisory authority on the association in order to remove identified violations and deficiencies, as well as to improve the existing situation;

ARTICLE 4. PURPOSE, PRINCIPLES AND PARTICULARITIES OF THE ASSOCIATION’S ACTIVITY
(1) The association has the purpose of supporting the legal activities of its members aiming at improving their economic and social status by providing services as detailed in art. 7.
(2) The principles of association activity are:
a)    voluntary association of physical and legal persons based on either territorial, professional, religious or common interest and free dissolution in accordance with the legislation;
b)    personal or represented participation of members in administrative and control bodies of the association in accordance with the legislation;
c)    equal personal non-property rights of members of the association, irrespective of the size of the membership fee, including the right of each member of the association to a single vote in the administrative and control bodies of the association;
d)    equitable access of members to saving deposits, lending and other services provided in accordance with legislation, category of license held, by-laws and policies of the association;
e)    minimization of risks of the association.
(3) The minimum number of members in the association is 50 persons.
(4) The association is constituted for an unlimited period of time, if its bylaws doesn’t provide otherwise.
(5) The annual profit of the association, if any, is directed firstly to compliance with the institutional capital requirement, established according to art. 33, and then to reserves of the association according to this law, regulations of the supervisory authority and the bylaws of the association.

CHAPTER II.  ASSOCIATION

ARTICLE  5. THE NAME AND HEADQUARTERS OF ASSOCIATION
(1) The full name of the Association will obligatorily include the words “Savings and Credit Association”, or the abbreviation “SCA”.
(2) The headquarters is the place where the administrative bodies of the association are operating.

ARTICLE 6. ADMINISTRATIVE AND CONTROL BODIES OF ASSOCIATION
(1) The administrative bodies of the Association are:
a)    The General Assembly of members;
b)    The Board;
c)    Executive Director;
(2) The control body of the association is the censors committee.

ARTICLE  7. SERVICES PROVIDED BY THE ASSOCIATION
 (1) The association can provide the following services to its members, depending on the category of license held:
a)    providing loans:
b) accepting the following types of savings deposits:
(1) term savings deposits;
(2) demand savings deposits;
c) providing services related to lending;
d) offering advisory services;
e) other services, with the written agreement of supervisory authority.
(2)    An association can invest its financial means not used in loans in accordance with the investment policy approved by the Board. At the same time, investments in capital or other securities of a financial institutions supervised by the supervisory authority or the National Bank of Moldova, except financial derivatives, are allowed only to associations with license B and C and central associations and only with the written approval of the supervisory authority.
(3)    While fulfilling the activities established in paragraph (1), and (2) the association is obliged to observe the requirements and limits established by the supervisory authority.
(4)    An association does not have the right to provide for other financial services or other kinds of services, to be in non-compliance with the licensing requirements, as well to perform commercial and production activities, other than those mentioned in the license held and that directly implied by them.
ARTICLE  8. PRUDENTIAL NORMS
(1)    The supervisory authority establishes prudential norms, which are applied to all licensed associations in order to protect the interests of members, prevent, control and manage risks within associations and the whole system.
(2)    Associations must comply with prudential norms established by the supervisory authority for each category of license and which are related at least to the following:
a)    requirements for minimum institutional capital;
b)    maximum limits for providing loans, making investments in real estate and other assets;
c)    liquidity requirements, matching maturity terms and interest rates to assets and liabilities;
d)    assessment and classification of assets and formation of loan loss provisions;
e)    contributing and maintaining the minimum level of investments and contributions in the liquidity pool and, respectively, stabilization fund.
(3) All loan granting and deposit accepting operations shall be documented in writing based on respective contracts that shall reflect clearly values, terms, interest rates and other necessary provisions, according to the law and respective policies of the association.
(4) Administrative and control bodies of an association and central association are obligated to notify without delay the supervisory authority about any infringement of prudential norms.
ARTICLE 9. RIGHTS AND OBLIGATIONS OF THE ASSOCIATION
(1) An association has the right to:
a)    use its own property,
b)    may gain and exercise on its own behalf property rights and non-property rights,
c)    assume obligations,
d)    receiving of loans from other associations, from the central association of which member it is, as well as from other creditors,
e)    may be plaintiff and culprit in a court of law.
(2) The association has the obligation to comply with legislation, the bylaws and internal regulations, including;
a)    to present at its members’ request information on its activity in accordance with this law and its bylaws;
b)    to submit financial statements and special reports, other documents, information and data regarding its activity in accordance with the Accounting Law, National Accounting Standards and normative acts of the supervisory authority;
c)    in case of accepting savings deposits from members, to participate in the liquidity pool and stabilization fund in the amount and manner established by the supervisory authority;
d)    to allow access of supervisory authority personnel and insolvency administrators  to headquarters, branches and representations of the association and to collaborate with them;
e)    to execute the normative acts of the supervisory authority, including implementation of stabilization measures.

ARTICLE 10. RESTRICTIONS IN ACTIVITY
An association does not have the right:
a)    to provide services to persons that are not members of the association;
b)    to fulfill activities or operations abroad;
c)    to provide services or make investments, according to art. 7, in foreign currency;
d)    to invest into capital, other securities or financial derivatives of cooperatives and commercial companies, other than those mentioned in art. 7 par.(3);
e)    to issue securities and financial derivatives.

ARTICLE 11. LIABILITY OF THE ASSOCIATION AND ITS MEMBERS
(1) The Association is liable with its entire property.
(2) Members of Association are not liable for the Association’s liabilities and the Association is not held liable for liabilities of its members.

ARTICLE 12. REQUIREMENTS TOWARDS ADMINISTRATORS
(1)    The administrator of the association must correspond to the requirements established in the normative acts of the supervisory authority regarding qualification, experience, education, business reputation, bonds with relatives etc.
(2)    The Administrator must be a member of the association, except the executive director, chief-accountant and chief of the branch who may not be members of the association.
(3)    The following persons cannot be administrators in an association:
a)    a person who has another position within the same association;
b)    a person who is the administrator of another association, except as provided in art. 55 par.(4);
c)    a person who is the manager and an employee of the supervisory authority or a public official;
d)    a person who is prohibited by legislation or by a decision of the court of law to fulfill this kind of position;
e)    a person who has unsettled criminal records;
f)    somebody who is a legally incapable person or is a person with limited sui juris;
g)    a person who is the external auditor of the association;
h)    a person who is a debtor with a delinquent loan for more that 90 days.
(4)    The administrators of the association that adopted joint decisions that damage the interests of the association are liable towards the association with their joint patrimony in the amount of the damage caused.

ARTICLE 13. CONFLICT OF INTERESTS
(1)    The association should avoid conflict of interests throughout its activity. 
(2)    In case of occurrence of a conflict of interests, the association will settle it in accordance with the Civil Code.

ARTICLE 14. CONFIDENTIAL INFORMATION
(1) The present and former administrators and other employees of the association are obliged to keep confidential the information they were acquainted with in the process of executing their functions, not to use them for personal or third parties’ interests and not to allow third parties to have access to this information, except disclosures made according to par. (2).
(2) Confidential information is disclosed to the supervisory authority and external administrators, investigating, judicial, and control bodies.
(3) The board will approve the list of confidential information and documents and the way and level of access to them.
ARTICLE 15. KEEPING THE DOCUMENTS OF THE ASSOCIATION AND ACCESS TO THEM
(1) The association is obliged to insure the keeping of the following documents:
a)    state registration certificate;
b)    license;
c)    bylaws, and modifications and amendments to it;
d)    internal regulations, modifications and amendments to it;
e)    policies of association;
f)    register of members;
g)    minutes of the general assemblies of members, meetings of the board and censors committee;
h)    orders, decisions, activity reports of the administrative and control bodies;
i)    contracts and agreements;
j)    source and summary accounting documents, accounting registers and accounts, financial statements, special reports and fiscal reports;
k)    the documents of verification by the supervisory authority, reports of the censors committee, reports of the external audit and other control documents of the associations’ activity;
l)    other documents indicated in normative acts, bylaws and internal regulations.
(2) Documents indicated in paragraph (1) are kept at the headquarters of the association for the following term:
a)    documents from letters a)-f) – permanently;
b)    documents from letters g)-k) – for 5 years;
c)    documents from letter l) - in terms and procedure provided by those documents.
(3) The association insures access to the mentioned documents to the supervisory authority and other authorities of the public administration empowered in accordance with the legislation.

ARTICLE 16. BRANCHES AND REPRESENTATIONS OF THE ASSOCIATION
(1)    The branches and representations of the association are registered according to the procedure and conditions established by legislation on state registration of enterprises and organizations.
(2)    The association can create branches and representations on the territory of Republic of Moldova only by complying with the provisions of art. 29.

CHAPTER III.  MEMBERS OF ASSOCIATION

ARTICLE 17. CONDITIONS FOR MEMBERSHIP
(1) Any physical person with full legal capacity and any legal entity that meet the following requirements may become members of an association:
a)    physical persons are citizens of Republic of Moldova or persons without citizenship; legal entities are registered in the Republic of Moldova according to legislation, providing that no person is undischarged bankrupt;
b)    were approved by the board of the association;
c)    have paid the membership fee in accordance with the bylaws of the association.
(2)    An applicant will be considered member of an association on the date the board makes the decision of accepting the member and upon paying the membership fee.

ARTICLE 18. APPLICATION FOR MEMBERSHIP
(1) The application for membership in the association must be individual. At the application will be attached the copies of the following documents:
a)    individuals - identification document;
b)    legal entity registered by the state registration body – the extract from the State registry of enterprises and organizations;
c)    other documents established by the bylaws.
(2) The application for membership in the association is submitted to the headquarters of the association. The application will be considered by the board at their next meeting and the board will make a decision regarding the acceptance or rejection to be accepted in the association.

ARTICLE 19. RIGHTS OF ASSOCIATION’S MEMBERS
(1)    A member of an association has the right to:
a)    participate in the activities of the association, elect and to be elected in the board of the association and censor committee;
b)    participate in the General Assembly of the association in person or to be represented by a representative authorized by proxy issued in accordance with legislation;
c)    receive from the administrators of the association information, data and documents concerning its activity in the term and manner foreseen by the bylaws;
d)    benefit from the services of the association;
(2)    Members of the association also have other rights foreseen by the legislation and the bylaws of the association.
(3)    The violation of members’ rights can be appealed in the administrative bodies of the association, at supervisory authority, or court of law.

ARTICLE 20. OBLIGATIONS OF ASSOCIATION’S MEMBERS
Members of the association are obliged:
a)    to execute the provisions of this law, the bylaws and internal regulations of the association;
b)    to inform the association about any changes in the data included in the register of members of the association;
c)    not to perform any action that might cause damage to the association.

ARTICLE 21. MEMBERSHIP FEE
(1) The amount of the membership fee is established by the general assembly.
(2) The members of the association are not reimbursed the membership fee.

ARTICLE 22. LIABILITY FOR NON-REPAYMENT OF THE LOAN AND/OR THE RELATED INTEREST AT MATURITY
(1) In case the loan, interest and other amounts related to the loan are not repaid at maturity by a member, in accordance with the loan contract, the losses caused to the association are covered successively from:
a)    the collateral or other forms of guarantee for the loan granted to the member in accordance with the legislation and the loan contract;
b)    the interest on member’s savings account within the association;
c)    the savings;
d)    other assets of the member, based on the decision of the arbitrage or a court of law.
(2) In case the association provided a loan violating this law and the financial prudential norms, the debtor, together with the administrators of the association who, knowing about the violation, adopted the decision to provide the respective loan, will have joint liability towards the association for non-repayment of the loan and/or the related interest at maturity, except administrators that voted against and their opinion was written separately in the minutes of the respective meeting.

ARTICLE 23. TERMINATION OF MEMBERSHIP
(1) Membership in the association may be terminated through withdrawal, expulsion, death of physical person or reorganization or liquidation of legal entity and liquidation of the association.
(2) A member can be expelled from the association upon the decision of the Board for non-compliance with art. 20 according to the procedure established in the bylaws of the association.
(3) Expulsion of the debtor-member does not cancel his/her debt and/or related interest payment upon maturity.

ARTICLE 24. REGISTER OF MEMBERS
(1) The Association is obliged to keep a Register of its members.
(2) The register of members is maintained in accordance with this law, bylaws and internal regulations of the association.
(3) The Register of members shall include:
a)    the full name of the association and its headquarters;
b)    name, surname and address of the member – physical person;
c)    name of the member – legal person, identification number, legal address;
d)    other records established by the bylaws.
(4) Documents set in art. 18 par. (1) are attached to the register of members.
(4)    The Executive Director or where he/she is not appointed, the board, is responsible for maintaining the Register of members of the association and is obliged to issue to members extracts from the Register within 5 days from the date the written request has been submitted.

CHAPTER IV CREATION AND STATE REGISTRATION OF THE ASSOCIATION

ARTICLE 25. CREATION OF THE ASSOCIATION
(1) The association is created based on the decision of the constitutive assembly.
(2) Physical persons, who meet the requirements established in art. 17 par. (1) let. a), hold the Constitutive Assembly of the association on voluntary basis.
 (3) The Constitutive Assembly:
a)    decides upon the creation of the association;
b)    approves the Bylaws of the association;
c)    approves the first members of the board for a term of 2-4 years in compliance with art. 41 par. (2), and the composition of the censor committee of the association;
d)    appoints the person (persons) authorized to represent the association during its registration;
e)    solves other problems concerning the initiation of the activity of the association.
(4) The constitutive documents of the association are:
a) the minutes of the constitutive assembly of the association, with the attached list of founders  and their signatures;
b) the bylaws.
 (5) The Minutes of the Constitutive Assembly and the bylaws are signed by the chairman and the secretary of the constitutive Assembly.

ARTICLE 26.  THE BYLAWS OF THE ASSOCIATION
(1) The Bylaws of the association includes:
a)    the name of the association;
b)    headquarters;
c)    purpose and principles of its activity, including administrative-territorial limits where the association is or will be licensed to operate;
d)    types of activity, allowed in accordance with art. 29;
e)    names, home addresses, dates of birth, citizenship, and other data from the identification document of founders;
f)    the conditions of admitting a member, procedure of withdrawing the membership and excluding a member;
g)    type and size of the membership fee;
h)    procedure of constituting property, including the capital;
i)    rights and obligations of members and the association;
j)    procedure of appointing or dismissing members of administrative and control bodies of the association;
k)    structure and powers of administrative and control bodies of the association;
l)     way of operating of administrative and control bodies, procedure of adopting decisions, including in case of conflict of interests;
m)    procedure of submitting information to members of the association and the liabilities of the administrators for not submitting it;
n)    data on branches and representations of the association, procedure of creating and liquidating them;
o)    procedure and conditions of reorganizing and liquidating the association;
(2) The bylaws can also include other provisions that do not contradict legislation.
(3) The provisions of the bylaws that do not comply with the legislation are not valid.
(4) Amendments to the bylaws of the association are registered upon receiving the positive written approval of the supervisory authority in accordance with art. 27 par. (3).

ARTICLE 27. STATE REGISTRATION OF THE ASSOCIATION                  
(1) The Association is subject to registration in accordance with legislation on state registration of enterprises and organizations.
(2) State registration of the association is fulfilled with the written approval of the supervisory authority.
(3) The supervisory authority establishes, by normative act, regulations on the procedures of application and issuance of the approval, documents necessary to be attached to the application on issuance the approval, reasons for rejecting the application, mode of notification of the association etc.

CHAPTER V  LICENSING OF THE ASSOCIATION

ARTICLE 28. LICENSING OF THE ASSOCIATION
(1)    The registered association is subject to licensing in accordance with the legislation on licensing some types of activities with the peculiarities provided by this law.
(2)    The license contains information on administrative-territorial limits within which the association is licensed to operate.
(3)    The license is issued for an unlimited period of time.
(4)    A copy of the license must be posted in a visible place where the association is authorized to operate and where it can be read by the public.

ARTICLE 29. CATEGORIES OF THE LICENSE 
(1)    In order to control the risks assumed by the association, three categories of license issued by the licensing authority are established: A, B, and C.
(2)    Category A license is granted to an association the members of which are only physical persons, and the respective association intends to provide to its members services specified in accordance with art. 7, par. (1), let. a) items 1) – 3). The license is valid within the limits of the administrative-territorial unit of level I where the association is registered and does not give the right to set up branches and representation offices within the territory stated above.
(3)    The category B license is granted to an association, the members of which are only physical persons, and the respective association intends to provide to its members services allowed in accordance with art. 7 par. (1) let. a) items 1) – 2), and item 3) – 5). The license is valid within the limits of the administrative-territorial unit of level II where the association is registered and gives the right to set up branches and representation offices within the territory stated above.
(4)    The category C license is granted to an association that held a B license for at least one year, the members of which can be both physical and legal persons, and the respective association intends to provide to its members services allowed in accordance with art. 7 par. (1). The license is valid on the whole territory of the Republic of Moldova and gives the right to set up branches and representation offices on the whole territory of the country.
(5)    The association that has a category A or B license may request the extension of the license on the neighboring administrative-territorial unit of the same level, without amending the category of the current license. The extension of the license can be approved only for administrative-territorial units that are in close vicinity of the unit in which the headquarters of the applicant association is registered.
The territorial extension of the license as well as issuance of a license of a different category is performed through reissuing, in accordance with art. 30.

ARTICLE 30. APPLICATION FOR ISSUING OR REISSUING THE LICENSE
(1)    The application on issuing or reissuing of the license will be submitted in accordance with the legislation on licensing of some activities, attaching documents specified by that legislation, par. (2), and depending on the case, par. (3) of this article.
(2)    The association should attach to the application on issuing the license the following documents:
a)    the association’s business-plan for the next 3 years of activity, containing information on members and common bond, territorial limits and services planned to be provided according to the license applied for, policies relating to loans, savings, investments and human resources, financial plan, including forecast of income, expenditures and financial result, cash flow forecast, strategy of compliance with institutional capital requirements, management of loan risk, including assets diversification, liquidity risk and interest rate risk, internal control system etc.;
b)    the copy of the property document, lease contract or any other document providing the real rights upon the office where the association is going to operate.
(3)    The association should attach the documents provided for by par. (2) if the application on reissuing the license is submitted based on provisions of art. 29.
(4)    The licensing authority submits the business plan to the supervisory authority for approval within 2 working days from the day it is received. The supervisory authority accepts the business-plan, providing that:
a)    the association will operate in compliance with this law, normative acts of the supervisory authority;
b)    the association has made all the arrangements and planned adequately all necessary resources for a secure, prudential and financially stable activity.
(5)    The supervisory authority decides upon acceptance of business-plan and informs the licensing authority upon the decision made within 10 working days from the date the business-plan is received.

ARTICLE 31. SUSPENSION OF THE LICENSE
(1)    The license is suspended by decision of the supervisory authority, by derogation from legislation on licensing some types of activity, in compliance with this law.
(2)    The supervisory authority will decide upon necessity of suspension of license, taking into consideration the specifics of association activity, necessity of avoiding winding up their activity, the aim of associations, which is continuous provision of diverse and qualitative services to members, as well necessity of continuous protection of legal rights and interests of members. Thus, the supervisory authority will examine the possibility of applying the provisions of art. 49 without suspension of the license.
(3)    The supervisory authority can suspend the license if the association is not in compliance with financial prudential norms.
(4)    The supervisory authority suspends the license for a specific period of time, but not more than 6 months, submits prescriptions for mandatory fulfilling and the term for submitting the report on fulfilling of prescriptions. Thus, the supervisory authority can develop itself or together with the respective association, a plan with measures aiming at liquidating all infringements found and complying with provisions of legislation.
(5)    The decision on suspension of the license will be communicated to the association and licensing authority within 3 working days after the date the decision was made.
(6)    Starting with the date the license is suspended, it is prohibited to conclude or amend any contracts on granting/restructuring loans, accepting of savings deposits, making investments. At the same time, the association will fulfill its liabilities taken on by contracts signed before the decision on suspension of the license.
(7)    Reactivation of license and its submitting to the association is subject to adequate fulfilling of established prescriptions provided for by par. (4). The association will make and submit a report on to fulfilling of prescriptions to the supervisory authority within the established term, which will describe detailed actions taken. Failure of submission of report will be considered as non-compliance with normative acts of the supervisory authority.
(8)    The supervisory authority will examine off-site or on-site the report submitted and will decide upon:
a)    renewal of the license, with or without enforcement of stabilization measures, according to art. 49;
b)    notification of the licensing authority upon withdrawal of the license.
(9)    The respective decision will be made within 10 working days after the report is received, and communicated to the association and the licensing authority within 3 working days after the date the decision was made.
ARTICLE 32. WITHDRAWAL OF THE LICENSE
(1)    The license is withdrawn based on the decision of the licensing authority in compliance with provisions of legislation on licensing of some activities and this law and based on the reasons provided for by them.
(2)    The following are reasons for withdrawing the license: 
a)    the association has not begun the activity for which it obtained the license during 1 year from the date of the decision to issue the license;
b)    for a period of 6 months, the number of members is less than that stipulated in art.4 par. (4) or depending on the situation, in art. 54 par. (2);
c)    association is under insolvency process.
(3)    The decision on withdrawal of the license will be communicated to the supervisory authority within 3 working days after the date the decision was made.
(4)    From the date when the decision regarding the withdrawal of the license is adopted the association is obliged to stop any activity and operations, except activities related to administrative functioning, to liquidate its assets, and to honor all its obligations as soon as possible.
(5)    The association remains a subject of this law after the withdrawal of the license until its final liquidation and writing off from the state registry of enterprises and organizations.

CHAPTER VI  CAPITAL, RESERVES AND LIQUIDITY

ARTICLE 33. INSTITUTIONAL CAPITAL 
(1) Institutional capital is constituted from retained earnings of previous years, net profit of the reported year less the uncovered losses of the previous years and net losses of the reported year.
(2) An association holding an A license is obligated to constitute and maintain at any date as certain percentage of assets as follows:
a) minimum 1%  – starting with the second year of activity;
b) minimum 2 % – starting with the third year of activity;
c) minimum 3 % – starting with the fourth year of activity;
d) minimum 4 % – starting with the fifth year of activity;
e) minimum 5 % – starting with the sixth year of activity.
(3) An association holding an B license is obligated to constitute and maintain at any date as certain percentage of assets as follows:
a) minimum 2 % – starting with the second year of activity;
b) minimum 4 % – starting with the third year of activity;
c) minimum 6 % – starting with the fourth year of activity;
d) minimum 8 % – starting with the fifth year of activity;
e) minimum 10 % – starting with the sixth year of activity.
(4) An association holding an C license is obligated to constitute and maintain at any date as certain percentage of assets as follows:
a) minimum 6 % - starting with the second year of activity;
b) minimum 8 % - starting with the third year of activity;
c) minimum 10 % - starting with the fourth year of activity.

ARTICLE 34. RESERVES
(1) The association may create reserves in accordance with its bylaws.
(2) The reserves created in accordance with paragraph (1) are used according to the bylaws or the decisions of association’s bodies competent to adopt this kind of decisions, providing that the association is complying with institutional capital requirements established by art.33.
ARTICLE 35. LIQUIDITY
(1)    To meet withdrawals from deposit accounts every association licensed to accept deposits shall establish and maintain liquidity as specified by the supervisory authority.
(2)    All investments made by an association for purposes of meeting liquidity requirements shall be made in liquidity pool and financial instruments in compliance with the supervisory authority.
(3)    The liquidity pool can only be invested in financial instruments as prescribed by the supervisory authority.

CHAPTER VII  ADMINISTRATIVE BODIES OF ASSOCIATION

ARTICLE 36. GENERAL ASSEMBLY AND ITS COMPETENCY
(1) The General Assembly of members is the supreme administrative body of the association.
(2) The General assembly has the following exclusive powers:
a)    approves the bylaws and its modifications and amendments;
b)    approves the regulations of the Board, Censor Committee, regulation of the branches and representations and other regulations foreseen by this law and the bylaws of the association, as well as amendments to them;
c)    elects and revokes the president and members of the Board of the association, Censor Committee and their substitution;
d)    elects the members of the committee for counting the votes;
e)    approves the amount, mode and terms of paying and reimbursing the membership fee;
f)    adopts decisions on creating other reserves than the ones established in the bylaws and the legislation;
g)    approves annual activity report of the Board, including on the execution of the budget, reports of the executive director, including the annual financial statements, annual activity report of the Censor Committee, including statements of the Censor Committee regarding the annual obligatory control and the audit report, in case audit is performed;
h)    adopts, decisions about auditing and chooses the auditing organization;
i)    adopts decisions to adhere to the central association or to withdraw its membership;
j)    approves the decisions to create or liquidate the branches and representations;
k)    decides upon the reorganization or voluntary liquidation of the association, appoints the liquidator (-s), approves the liquidation balance sheet of the association.
(3) The General Assembly may exercise and other attributions according to the bylaws.
(4) The decisions of the General Assembly of members that do not comply with the legislation, including the normative acts of the supervisory authority, are not valid.
(5) The decisions of the General Assembly are binding for administrators, employees and members of the association.

ARTICLE 37. CONVENING THE GENERAL ASSEMBLY
(1)    The General Assemblies are ordinary and extraordinary.
(2)    The Chairman of the board or the Executive Director convenes ordinary General Assemblies based on a decision of the Board at least once a year. The annual ordinary General Assembly takes place within 3 months after the end of the financial year.
(3) The extraordinary General Assembly is convened by the Chairman of the board or the Executive Director based on:
a)    decision of the Board;
b)    at the request of the censor committee;
c)    at the request of at least 10% of members of association;
d)    at the request of the supervisory authority.
(4) The board decides upon the date, hour, place and agenda of the general assembly convened on par. (2) or (3). Agenda of the general assembly convened from reasons provided for in par. (3) let. b) – d) will include issues reflecting reasons of convening the assembly. Decision on convening the general assembly will be taken by the board in a period of time that would not prevent adequate execution of par.(5).
(5) At least 15 days before the general assembly, the chairman of the board or the executive director informs the members of the association according to the procedure established by the by laws.
ARTICLE 38. PROCEDURE OF THE GENERAL ASSEMBLY
(1) The General Assembly of the Association is deliberative (has quorum) if at least two thirds of the total number of members are registered or represented by proxy in accordance with legislation. The registration of members must be completed before the general assembly begins.
(2) If the General Assembly didn’t gather the necessary quorum, a second meeting is called. The Board establishes the date of the second meeting. Members are informed about the convocation of a second meeting of the General Assembly according to the procedure established by art. 37 par. (5).
(3) The second meeting of the General Assembly is considered to have a quorum if at least one half of the total number of members is registered or represented by proxy issued in accordance with current legislation are present.
(4) The decisions on matters foreseen in paragraph (2) a), k) of article 36 of this Law, are adopted with the votes of at least two thirds from the number of members present or represented. On other matters, the decision is adopted with a simple majority of votes of members present or represented at the meeting.
(5) The chairman of the general assembly is the chairman of the board, if the general assembly did not elect another person.
(6) The general assembly will elect the members of the committee for counting the votes that has to contain minimum 3 persons. The chairman of the committee for counting the votes is the chairman of the censor committee, if the general assembly did not elect another person. The activity of the committee is recorded in minutes and is signed by all its members and is attached to the minutes of the general assembly.
(7) The works of the General Assembly must be recorded in the minutes of the assembly. The chairman and the secretary of the General Assembly sign the minutes, and apply the seal.
(8) To the minutes of the General Assembly are attached:
a)    the decision of the Board to convene the General Assembly;
b)    the member notification on convening the general Assembly;
c)    list of members who took part or were registered in the General Assembly, with their signature;
d)    other documents stipulated by the bylaws or the decision of the general assembly.
(9) The chairman of the board of the association is responsible for keeping record of the minutes of the general assembly in the respective register.

ARTICLE 39. REPRESENTATION OF MEMBERS AT THE GENERAL ASSEMBLY   
(1) The bylaws of the association may provide for the representation of the members at the general assembly in accordance with legislation.
(2) Members of the association may be represented at the general assembly only by other members of the association, except members of the board, censor committee and the executive director who don’t have the right to represent the members of the association.
(3) One representative can hold maximum 10 votes, including his/her own vote and thus, the number of votes held by one representative should not exceed 5% of the number of members of the association. 
(4) The representative will vote based on the mandate, signed by the chairman, the secretary and the chairman of the committee for counting the votes and issued based on presented delegation (s). The mandate will specify the names of represented members and is attached to the minutes of the committee for counting the votes.
(5) The representative and members represented are indicated in the minutes of the respective general assembly.

ARTICLE 40. THE BOARD AND ITS COMPETENCY
(1) The Board of the association represents the interests of members during the period between the General Assemblies and, within the limits of its competences, implements general management and control of the activity of association. The Board of the association reports to the General Assembly of the association.
(2) The Board of the association has the following exclusive competences:
a)    to adopt decisions on convening ordinary and extraordinary General Assemblies;
b)    to adopt decisions on accepting members and excluding them from the association;
c)    to approve policies on accepting savings deposits, providing loans, investments, human resources and other policies regarding the activity of the association, to control their execution and to take on the responsibility on policies’ implementation;
d)    to appoint and to remove the executive director;
e)    to appoint and to remove members of the lending committee;
f)    to approve decisions of contracting bank loans, guarantees, to approve pledging the assets of the association;
g)    to adopt decisions on providing loans, if it did not appoint the members of the lending committee;
h)    to delegate approval of loans to either the lending committee or employees in accordance with its lending policy;
i)    to approve and monitor the execution of the annual budget;
j)    to adopt decisions regarding the use of the association’s reserves according to the bylaws;
k)    approves the list of information that constitutes commercial secret;
(3) The competency of the Board may include any other competencies of the general assembly and executive director foreseen in the Bylaws and its regulation, except those constituting exclusive competency.
(4) A member of the board cannot transmit the execution of tasks from his/her competency to another person.

ARTICLE 41. ELECTING THE BOARD AND ITS ACTIVITY   
(1) The number of members of the Board is established by the General Assembly and will be represented by an odd number of persons, but not less than 5.
(2) The General Assembly elects the members and the chairman of the Board for a term of 2-4 years, except the first terms established, so that an equal number of terms of board members expire annually. Members of the Board may be re-elected for a new term. The bylaws shall provide for a fixed term of appointment of board members.
(3) The Board meets as many times as it is needed, but at least once per quarter. The meetings are recorded in the respective minutes, which are signed by the chairman and the secretary.
(4) The Board is deliberative if the majority of members of the Board are present.
(5) The decisions of the Board of an association are made with the simple majority of votes.
(6) The decisions of the Board that do not comply with the legislation, including the normative acts of the supervisory authority, bylaws and decisions of the general assembly are not valid.
(7) The Board of the association submits to the General Assembly of members annual reports on its and association’s activity, including the execution of the budget.
(8) The chairman of the Board of the association is responsible for keeping record of the minutes of the meetings of the Board in the respective register.
(9) The chairman of the Board has the following attributions:
a) calls and conducts meetings of the Board;
b) concludes the individual labor contract with the executive director;
c) exercises other attributions stipulated in the bylaws of the Board of the association.
(10) In the absence of the chairman of the Board, his/her attributions are exercised by one of the members of the Board.

ARTICLE 42. THE EXECUTIVE DIRECTOR
(1) The competencies of the executive director of the association include all matters concerning the current activity of the association, except those constituting the exclusive competency of the General Assembly and of the Board of association.
(2) The executive director ensures the execution of decisions of the general assembly and of the board.
(3) The executive director has the following attributions:
(a) acts without a proxy in the name of the association and represents its interests before public authorities, physical persons and legal entities;
(b) organizes and guides the whole activity of subordinated personnel, including:
- hiring and dismissing personnel, applies stimulus and disciplinary sanctions in accordance with labor legislation;
-  establishes and approves job descriptions for the personnel of the association;
      (c)issues orders binding for the entire personnel of the association;
(d) is personally responsible for the activity of the association.
(4) The executive director is fulfilling his/her attributions in accordance with this law, bylaws, decisions of the general assembly and the board and the individual labor contract.
(5) The executive director has the right to participate at the meetings of the board without the right to vote.
(6) The executive director will inform in writing the supervisory authority within 7 days since determining that:
a) the association is not capable of complying with legal financial obligations;
b) the market value of the assets of the association is smaller than the value of its equity and liabilities.
(7) The board performs the duties of the executive director in case his/she is not appointed.

ARTICLE 43. THE CENSOR COMMITTEE
(1) The Censor Committee exercises the internal control of activities of the association and reports to the General Assembly.
(2) The Censor Committee is composed of an odd number of members, not less than 3, appointed by the general assembly for a period of 3 years.
(3) The censor committee performs its activity based on its regulation approved by the general assembly.
(4) The censor committee:
a)    performs periodic control of the activity of the association in accordance with the bylaws and its regulation;
b)    controls the accounts, registers, financial statements and other documents of the association;
c)    controls the compliance of the association with legislation, including financial prudential norms and internal regulations of the association;
d)    exercises other attributions foreseen by its regulation.
(5) The Censor Committee performs the obligatory annual control of economic and financial activity of the association after the preparation of financial statements and before they are submitted to the supervisory authority.
 (6) The Censor committee can carry out additional investigations of the association:
a)    on its own initiative;
b)    at the request of at least 10 percent from the total number of members of the association;
c)    at the decision of the General Assembly of members;
d)    at the request of the Board;
e)    at the request of the supervisory authority.
(7) The administrators of the association are obliged to present to the Censor Committee all the documents necessary to perform the control, and to give verbal and written explanations.
(8) The Censor Committee prepares reports on the control performed, which are signed by all members of the Committee who participated in carrying out controls. If a member of the Censor Committee does not agree with the report, his/her opinion is expressed separately and annexed to the report.
(9) The reports of the Censor Committee are presented to the management bodies of the associations, the supervisory authority, and, if required, to the members of the association, at whose request the control was performed.
(10) The Censor Committee is obligated to request the Board to convene an extraordinary General Assembly of members of the association, if any serious abuses in the activity of the association were discovered and to inform the supervisory authority
(11) The Censor Committee makes an annual activity report, to which it attaches the report regarding the annual compulsory control, and submits it to the General Assembly of the association.
(12) The member of the Censor Committee cannot transmit the execution of tasks from his/her competency to another person.

CHAPTER VIII  ACCOUNTING, FINANCIAL REPORTS AND EXTERNAL AUDIT

ARTICLE 44. ACCOUNTING AND FINANCIAL REPORTS
(1) The association keeps accounting records and prepares financial and specialized statements according to legislation, national accounting standards and its accounting policy.
(2) The association submits financial and special reports, other information and documents to the supervisory authority, with the frequency established by the legislation.
(3) The Board and the general assembly of members are not entitled to approve the annual activity report of the executive director and the Board, if this report is submitted without the annual financial statement and the report of the censor committee.
(4) Administrators that avoid bookkeeping, that incorrectly apply national accounting standards and the normative acts of the supervisory authority as well as those deliberately submitting inaccurate financial statements and special reports are applied, as the case might be, disciplinary, material, administrative or penal sanctions, as provided by legislation.
(5) The annual financial report of the association, to which are attached the report of the Censor Committee regarding the obligatory annual control and the external audit report, is submitted to the ordinary annual General Assembly of members and the supervisory authority.

ARTICLE 45. AUDIT
(1)    The audit might be statutory or performed upon request.
(2)    The statutory audit of annual financial statements, including special reports, is carried out:
a)    for associations holding a C license.
b)    for associations holding a B license requesting a C license.
c)    for associations holding a B license with a total balance sheet value of more than 10 million lei.
(3)    The requested audit should be carried out in compliance with legislation on the audit activity.
(4)    The association will conclude a contract with the audit company complying with the qualifications stipulated by the supervisory authority based on stipulated regulations.

CHAPTER IX. SUPERVISION AND REGULATION OF ASSOCIATIONS’ ACTIVITY.

ARTICLE 46. REGULATION AND SUPERVISION OF ASSOCIATION ACTIVITY
(1)    The supervisory authority is the only state body which supervises and regulates the activity of associations.
(2)    In order to exercise regulation and effective supervision of activity of associations, the supervisory authority is entitled to adopt normative acts (regulations, instructions, ordinances, decisions etc.), perform examinations over associations’ activity, examine reports, accounts, registers and other documents and information, to take actions and to enforce measures toward stabilization of activity of associations and compliance with provisions of this law and its normative acts, manage the stabilization fund, as well as to take any other actions according to this law, its normative acts and other legal and normative acts.
(3)    Together with financial prudential norms, specified in art. 8, the supervisory authority might establish non-prudential norms referring to bonds of association, requirements towards administrators, reporting and auditing, depending on the category of license held by the association.
(4)    The supervisory authority can release an association from compliance with one or more provisions of its normative acts, if this is a part of a long-term stabilization plan of the activity of that association.
(5)    The supervisory authority can require, and associations must submit upon request documents and information needed for adequate fulfilling of provisions of this law.
(6)    Managers and employees of the supervisory authority should assure confidentiality of information they found out when fulfilling their duties. Information may be disclosed in cases and within limits established by legislation. Responsibility of infringement of this provision is taken on in accordance with legislation.

ARTICLE 47. REORGANIZATION
(1)    The association is reorganized through mergers (fusion or absorption) or dismemberment (division or separation) according to the grounds and procedures established by the legislation and preliminary approval of the supervisory authority. The reorganization through transformation is not applied to associations.  
(2)    The board of reorganizing association (associations) involved in reorganizing will develop a reorganization plan, subject to approval by the general assembly (assemblies) of respective association (associations) and the supervisory authority.
(3)    The supervisory authority can take under its administration the process of reorganization of the association without the consent of the general assembly of members, in case it is obvious that the financial situation is rapidly deteriorating.
ARTICLE 48. LIQUIDATION
(1) The association is liquidated on the grounds and the procedure established in the civil legislation, with the exceptions and derogations provided by this article.
(2) Other then the grounds established in the civil legislation, the association is liquidated if:
a)    the licensing authority has withdrawn the license of the association;
b)    the association failed to submit the license application within one year from the date of state registration.
(3) The decision regarding the voluntary liquidation of the association will be presented to the supervisory authority within 10 days from the day it was adopted.
(4) The liquidator (liquidators), appointed by the general assembly of members, will perform the liquidation of the association and will have all the current authorities to manage the association. The supervisory authority can delegate, in accordance with the legislation, its representative to be designated as a liquidator.
(5) Assets left after paying off the creditors will be distributed to members proportionally to their paid in membership shares in compliance with legislation and by-laws.

Chapter X  ILLEGAL ACTIONS AND STABILIZATION MEASURES. STABILIZATION FUND


ARTICLE 49. ILLEGAL ACTIONS AND STABILIZATION MEASURES
(1) If it is determined that the association violated this law, the normative acts of the supervisory authority or other normative acts, or the financial situation or the viability of the association are deteriorated, or there were committed violations at the presentation of the financial statement and other reports and information, or it presented false data and information, including the financial prudential indicators or other requirements stipulated in the normative acts or taking into consideration the peculiarities of the current situation of the association or from the past, the supervisory authority can:
b)    issue a warning;
c)    sign an agreement with the association that provides for stabilization measures;
d)    issue an ordinance regarding the compliance with legislation and/or implementation of the stabilization measures, including placing the association under external administration and applying of sanctions;
e)    suspend the license of the association, in compliance with art. 31.
 (2) As a result of determining of situations provided for in par. (1), the supervisory authority can force the association:
a)    not to accept savings deposits;
b)    not to provide loans;
c)    not to create branches and representations;
d)    not to engage in a new type of activity;
e)    not to establish interest rates for the loans and savings deposits at a level that will have a negative influence on the financial situation of the association;
f)    to change, reduce, or suspend any activity that it considered to be excessively risky;
g)    to suspend and dismiss the administrator from its position;
h)    that no administrator or employee receives bonuses or premiums or other additional payments to the salary.

ARTICLE 50. STABILIZATION FUND
(1)    The stabilization fund is created with the purpose of providing assistance to the associations by implementing stabilization measures in the association.
(2)    Savings and credit associations that are accepting savings deposits from their members, are obliged to become members and to participate at the establishment of the Stabilization Fund.
(3)    The stabilization fund is established, managed and used by the supervisory authority according to its normative acts.
(4)    The financial means of the Stabilization Fund is constituted of:
(a) initial contributions of associations;
(b) annual contributions of associations;
(c) special contributions of associations;
(d) revenues from investing available resources of the Stabilization Fund;
(e) means from Government sources, donations, grants and external financial assistance.
(5)    The conditions, amount and terms of paying the contributions mentioned in paragraph (4) let. a), b) and c) are established by the supervisory authority.
(6)    The means of the Stabilization Fund are directed to associations as:
a)    loans;
b)    guarantees;
c)    buying out receivables from loans;
d)    offering technical and other assistance, implementation of monitoring, educational and consulting programs aimed to prevent insolvency or to minimize the risk of insolvency;

CHAPTER XI  CENTRAL ASSOCIATION

ARTICLE 51. PURPOSE AND PRINCIPLES OF THE CENTRAL ASSOCIATION ACTIVITY
(1)     The purpose of the Central Association is to support the sustainable development of savings and credit associations and the improvement of quality of services delivered by them to their members.
(2)    The principles of association of members of the Central Association are:
a)    the voluntary character of the process of association of savings and credit associations, except those mentioned in letter e) and free dissolution in conditions of the legislation;                                                                          
b)    the participation of the associations with their representatives in the management and control bodies of the Central Association; 
c)    each member holds a single vote at the General Assembly of the Central Association;
d)    providing services only for the member - associations;
e)    the compulsory participation of the associations that are accepting savings from members in the Central Association.

ARTICLE 52. CENTRAL ASSOCIATION ACTIVITIES
(1) A licensed central association can perform the following activities:
a)    provide loans to associations and services related to loans;
b)    accept investments from associations into the liquidity pool and administer the liquidity pool;
c)    offer assistance from the liquidity pool to associations for maintaining liquidity requirement;
d)    represent associations’ interests in relations with private institutions and organizations, public and legal authorities, in accordance with the legislation;
e)    organizes the process of training the association personnel;
f)    offers methodological assistance to associations;
g)    depending on the case, presents to the supervisory authority proposals regarding the need of applying stabilization measures to associations;
h)    invests available financial resources;
i)    offers fiduciary and intermediation services to associations in the process of placing their funds and reserves in different financial instruments;
j)    contracts lending resources from the financial market and international organizations;
k)    establishes standard operational procedures for performing activities of the associations;
l)    presents proposals to the supervisory authority regarding the improvement of the normative acts that regulate the activity of the associations;
m)    performs activities delegated by the supervisory authority, based on the respective agreement;
n)    performs other activities provided by legislation and its bylaws.
(2) The central association can establish commercial organizations in order to fulfill the necessities of member savings and credit associations and/or participate into the capital of such enterprises, based on the decision of the general assembly of members of the central association and written agreement of the supervisory authority.
(3) When performing the activities mentioned in par. (1) and (2) the central association is obliged to respect the requirements and limits established in legislation, including the normative acts of the supervisory authority.
(4) The provisions of art. 7 par. (1) and (2) are applied to central associations to the extent they don’t contravene to this article.

ARTICLE 53. MEMBERS OF THE CENTRAL ASSOCIATION
(1)    The association becomes a member after the approval of its application by the Board of the central association and after it deposits the membership fee stipulated in the Statute of the central association.
(2)    The record regarding the members of the central association is made in the Register of members kept by the Board of the central association.
(3)    The member of the central association has the right:
a)    to nominate its representative for participation in the management and control bodies of the central association;
b)    to benefit from loans, guaranties and other assistance and services provided by the central association and stipulated in this law and in the central association’s bylaws, according to the procedures and conditions established in the Statute and contracts with the central association;
c)    to make investments into the liquidity pool;
d)    to request and to receive information regarding the activity of the central association, to get acquainted with its documents on the grounds of the provisions of the Statute and decisions regarding keeping the information classified;
e)    to benefit from other rights established in the legislation and Statute.
(4)    The Member of the central association is obliged:
a)    to respect the legislation, including the normative acts regarding the central association, its Statute and internal regulations;
b)    to deposit the membership share and other financial contributions established in the Statute, by decisions of the administrative bodies of the central association, by normative acts of the supervisory authority;
(5)    The association ceases to be a member of the central association in case of:
(a)    withdrawal;
(b)    expulsion, according to the procedure established by the Statute;
(c)    withdrawal of license.
(6)    Funds deposited into the central association to meet liquidity requirements shall be reimbursed according to procedure and requirements of normative acts of the supervisory authority.

ARTICLE 54. CREATING AND LICENSING THE CENTRAL ASSOCIATION
(1)    The Central Association is created based on the decision of the General Assembly of founders.
(2)    The minimum number of founders for constituting a central association is 25 savings and credit associations.
(3)    The Constitutive Assembly:
(a)    decides upon constituting the central association;
(b)    approves the Statute of the central association;
(c)    elects the members of the board and censor committee;
(d)    authorizes the persons who will represent the central association in the process of its registration;
(e)    examines other matters related to initiating the activity of the central association;
(4)    Constitutive documents of the central association and the requirements towards them are similar to the ones provided for the savings and credit associations established in the art. 25 par. (4).
(5) The license of the central association is effective for the entire territory of Republic of Moldova.

ARTICLE 55. MANAGEMENT AND CONTROL BODIES OF THE CENTRAL ASSOCIATION. AUDIT
(1) The Management Bodies of the central association are:
(a)    The General Assembly of the members;
(b)    The Board;
(c)    The Executive body;
(2) The Control Body of the central association is the censor committee.
(3) Competencies of the general assembly, board, executive body, censor committee and the procedures of their activity are analogical to those established in art. 36-43, with the exception of the particularities provided in this article. 
(4) The requirements towards the administrators of the central association are analogical to those established for the administrators of the associations in art. 12. Members of the board and censor committee of a savings and credit association can be members of the board and censor committee of a central association and vice-versa. The supervisory authority can establish specific requirements towards the administrators of the central association.
 (5) The members of the board and the censor committee are elected by secret ballot by the general assembly of members for a period of 4 years with the condition of reelecting half of the members every 2 years. In the first board and censor committee at least half of all members will be elected for a period of 2 years.
(6) The board is composed of at least 5 members, who elect the chairman of the board.
(7) In order to identify the candidates for the position of member of the board and censor committee the Board creates the nominating committee that presents to the member associations the list of candidates within at least two weeks before the general assembly. Additional candidates can be nominated at the general assembly with the written agreement of at least 5 members of the central association.
(8) The Board appoints the executive body and approves the candidates proposed by the executive body for the management positions of the central association.
(9) The members of the censor committee can be the representatives of member associations or other persons that correspond to the minimum eligibility criteria established in the normative acts of the supervisory authority.
 (10) The general assembly approves the external audit of the central association at the proposal of the censor committee. The same auditor cannot be approved for the third consecutive year.
(11) The audit organization or individual auditor will perform the audit of the central association within 4 months after the end of the financial year and will submit the audit report and the management letter to the censor committee, general assembly and supervisory authority within 10 calendar days from the issuance date.

ARTICLE 56. THE STATUTE OF THE CENTRAL ASSOCIATION
(1)    The Statute of the central association will include provisions analogical to the ones for the savings and credit associations established in art. 26 of this law, except par. (1) let. e) according to which the information on the name of the association, legal address, identification number shall be provided.
(2)    The statute of the central association can include other provisions, including regarding relations among members of the central association, relations between the central association and third persons, which must comply with legislation.

CHAPTER XII  FINAL AND TRANSITORY PROVISIONS

ARTICLE 57. TRANSITORY PROVISIONS
(1)    Licenses valid at the date this law becomes effective remain valid until the expiration date, providing activity, operations and documents of associations are in compliance with this law and normative acts of the supervisory authority within terms set up through normative acts, but not later than 12 months after this law becomes effective. The associations that will comply with the requirements of an A license will operate for an unlimited period of time with licenses in effect at the date of this law coming into effect.
(2)    Until the activity, operations and documents of associations are in compliance with this law and normative acts of the supervisory authority, associations will operate within actual territorial limits and perform activities allowed by the license valid, specifically named: providing loans and accepting savings deposits.
(3)    Until the amendment of the Bylaws, the bylaws and internal regulations will be applied to the extent they do not contradict this Law.
(4) Associations are exempt from paying the tax on registering modifications to their bylaws which are required by this law coming into effect.

ARTICLE 58. FINAL PROVISIONS
(1)    This Law becomes effective on January 1, 2008, except art. 50-56 and provisions related to the liquidity pool and stabilization fund, which will become effective after 12 months after this law becomes effective.
(2)    Within 6 months from publishing this law the Government will:
-    submit to the Parliament proposals of adjusting the legislation to this law;
-    adjust its normative acts to the provisions of this Law and adopt normative acts ensuring the implementation of this Law.
(3)    From the date of entering into force of this law, the Law no. 1505–XIII from February 18, 1998 on savings and credit associations of citizens with all the amendments is abrogated.


CHAIRMAN OF THE PARLIAMENT                   
MARIAN LUPU




Chisinau, 21 iunie 2007.
Nr.139-XVI.
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