About The Specifics Of The Issuance And Circulation Of State And Municipal Securities

Original Language Title: Об особенностях эмиссии и обращения государственных и муниципальных ценных бумаг

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102054679

RUSSIAN FEDERATION FEDERAL LAW on peculiarities of the issuance and circulation of State and municipal securities adopted by the State Duma on July 15, 1998 the year approved by the Federation Council of the year July 17, 1998 (as amended by the federal laws on Jul 18, 2005 N 90-FZ;
from 26.04.2007 N 63-FZ; from 14 N 79-FZ) Chapter i. GENERAL PROVISIONS s t a t b I 1. The scope of regulation of this federal law shall be established: the order of occurrence as a result of the implementation of the issue of State and municipal securities and the fulfillment of obligations of the Russian Federation, constituent entities of the Russian Federation and municipal entities;
the procedure for issuance of State and municipal securities and the peculiarities of their treatment;
procedure of disclosure of information by issuers of listed securities in the part not regulated by the legislation of the Russian Federation.
The legal foundations for the participation of the Russian Federation, constituent entities of the Russian Federation, the municipality in relations arising from the implementation of the issue of State and municipal securities, established by this federal law and other legislation of the Russian Federation.
T s t b I 2. Government and municipal securities.
State and municipal issuers of securities 1. In accordance with this federal law state securities recognized State securities of the Russian Federation and Government securities of constituent entities of the Russian Federation.
In accordance with this federal law state securities of the Russian Federation recognized securities issued on behalf of the Russian Federation.
In accordance with this federal law state securities of the Russian Federation recognized securities issued on behalf of a constituent entity of the Russian Federation.
In accordance with this federal law recognized municipal securities securities issued on behalf of the municipality.
(The part in Edition 14 federal law N 79-FZ)
2. (repealed-Federal Act of 26.04.2007 N 63-FZ), performance of the obligations of the Russian Federation, constituent entities of the Russian Federation and municipal entities in cases determined by this article the securities shall be carried out in accordance with the issue terms of these securities. (As amended by the Federal law of 26.04.2007 N 63-FZ)
3. State and municipal Issuers of securities are, respectively, the executive authorities and local administrations, which release on behalf of the public legal education securities and bear obligations to holders of securities for the implementation of the rights enshrined in these securities.
Issuer of State securities of the Russian Federation the Government of the Russian Federation or the authorized federal body of executive power.
Issuer of State securities of the Russian Federation supported the Supreme executive organ of State power of constituent entities of the Russian Federation or the fiscal authority of the Russian Federation, with the law of the Russian Federation Law on public borrowing in constituent entities of the Russian Federation.
Issuer of municipal securities acts as the local administration, with the Charter of municipal formation(education) right to exercise municipal borrowing.
(The part in Edition 14 federal law N 79-FZ), chap. II. Requirements for ISSUANCE of State and municipal securities with t a t b I 3. Types of State and municipal securities, public and municipal securities may be issued in the form of bonds or other securities related to emissive securities in accordance with the Federal law "on securities market", certifying the right of the owner to receive from the issuer of such securities or cash depending on the conditions of issuance of these securities other property installed per cent from the nominal value of any other property rights within the deadlines stipulated by the specified issue.
Article 4. Features of issue of registered State and municipal securities in documentary form (as amended by the Federal law of 14 N 79-FZ) in case of issue of registered State and municipal securities in documentary form with obligatory centralized storage is the name of the owner of such securities is not a required attribute of the global certificate. In this case, the global certificate includes the name of the depositary, to whom the issuer is transferred to the storage of the specified certificate, stating the names against its props "depositary". Specifying global certificate names the depositary does not entail a transition to the depository the rights to issue securities issued data from global certificate.
On individual State and municipal securities register of inscribed securities owners. (As amended by the Federal law of 14 N 79-FZ) t s t b I 5. Editions of State and municipal securities

Government and municipal securities placed releases. (As amended by the Federal law of 14 N 79-FZ) as part of the release of Government or municipal securities may establish series of digits, numbers of securities.
Decision on release of State or municipal securities Division may be established to release tranches.
Tranche-part of securities of this issue placed within the volume of the issue in any date during the period of circulation of securities of this issue, not coinciding with the date of first posting. Placement of tranches one release is carried out on the basis of documents regulating the issue in accordance with this federal law.
Issue of public or municipal securities that is different from one of the existing editions of such securities only release date (date of posting), recognized part of an existing release and assigned State registration number of an existing issue (additional issue). A decision on the deployment of additional issue is carried out on the basis of documents regulating the order of the editions of State and municipal securities, in accordance with article 9 hereof, which shall contain an indication to the effect that this securities issue is optional. Additional issue of securities provide their owners with the same amount of rights, and securities issuance, registration number which is assigned an additional release. (As amended by the Federal law of 14 N 79-FZ) decision to release emissions (additional issue) of State or municipal securities, exercised in accordance with the General conditions of the issuance and circulation of State or municipal securities and conditions of the issuance and circulation of State or municipal securities of this type was adopted by the issuer of such securities. (As amended by the Federal law of 14 N 79-FZ) Issuer when making decisions on emission release (additional issue) of State or municipal securities assigns this release (additional production) of securities registration number generated in the manner prescribed by the federal body of executive power executing powers in part the approval procedure for the formation of State registration numbers assigned to editions of State and municipal securities and other debt. (Part is supplemented by federal law from 14 N 79-FZ) t s t b I 6. Currency liabilities incurred as a result of the issue of State and municipal securities 1. Obligations of the Russian Federation, constituent entities of the Russian Federation and municipal education arising from the issuance of State securities of the Russian Federation, state securities of the constituent entities of the Russian Federation, municipal securities and domestic debt, must be expressed in the currency of the Russian Federation. (As amended by the Federal law of 14 N 79-FZ) (Repealed-Federal Act of 14 N 79-FZ) obligations of the Russian Federation, constituent entities of the Russian Federation and municipal education arising from the issuance of State securities of the Russian Federation, state securities of the Russian Federation and municipal securities that comprise the domestic debt and certifying the right to receive income in the form of cash or repayment in cash, payable in the currency of the Russian Federation. (As amended by the Federal law of 14 N 79-FZ) State and municipal securities proving the right to receive as income any proprietary rights, as well as providing for the right to receive at maturity instead of face value of a security property otherwise equivalent, are part of the domestic debt and must be expressed in the currency of the Russian Federation.
2. Obligations of the Russian Federation and constituent entities of the Russian Federation, arising from the issue of the appropriate state securities and components of external debt of the Russian Federation and constituent entities of the Russian Federation's external debt should be denominated in foreign currency. (Repealed-Federal Act of 14 N 79-FZ) obligations of the Russian Federation and constituent entities of the Russian Federation, arising from the issue of the relevant securities, the components of external debt and certifying the right to receive income in the form of cash or repayment in cash, payable in foreign currency. (Repealed-Federal Act of 14 N 79-FZ) (Repealed-Federal Act of 14 N 79-FZ) (Repealed-Federal Act of 26.04.2007 N 63-FZ) (Repealed-federal law on Jul 18, 2005 N 90-FZ) (Repealed-Federal Act of 26.04.2007 N 63-FZ) (Repealed-Federal Act of 26.04.2007 N 63-FZ)

For purposes of this federal law the issuance of State securities of the Russian Federation, the nominal value of which is specified in a foreign currency, and which are placed outside the Russian Federation recognizes the foreign bond issuance in constituent entities of the Russian Federation. (The paragraph is supplemented by federal law from 14 N 79-FZ) release of external bond issues of the constituent entities of the Russian Federation shall be based on the priority of State external loans of the Russian Federation.
3. For issuance of external bond in constituent entities of the Russian Federation at the State registration conditions of the issuance and circulation of State securities of the Russian Federation, the issuer is: documentary acknowledgement of receipt in accordance with international standards of credit rating of not less than two leading international rating agencies shall not be less than the level established by the Government of the Russian Federation;
foreign bond issue prospectus of a constituent entity of the Russian Federation in the Russian language, which is a document containing information about the borrower and the conditions of issue of securities subject of the Russian Federation on the international financial markets. Responsible for ensuring that content submitted to Russian foreign bond issue prospectus in constituent entities of the Russian Federation contents of a similar document drawn up in a foreign language shall be borne by the issuer of such securities;
a letter from the Supreme executive body of State power of the constituent entities of the Russian Federation, signed by the head of this body and containing information on the projected delivery dates of posting such securities.
Prospectus external bond of a constituent entity of the Russian Federation shall not be subject to the State registration of the federal body of executive power executing State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities.
(Part is supplemented by federal law from 14 N 79-FZ), chap. III. The ORDER of OCCURRENCE of the OBLIGATIONS of the RUSSIAN FEDERATION, CONSTITUENT ENTITIES of the RUSSIAN FEDERATION and municipal EDUCATION in State and municipal securities with t a t b I 7. Restrictions on the occurrence of the obligations on the State and municipal securities Issuance of State and municipal securities is permitted only if approved by the Federal law, the law of the Russian Federation or by a local authority on the budget at the appropriate level for the current financial year the following values: the size limit of the public debt, as well as municipal debt;
limit the amount of borrowed funds, the Russian Federation, the Russian Federation and municipal education during the current fiscal year to finance the budget deficit of the corresponding level or development programmes of the Russian Federation or the municipality. When this maximum limit of borrowed funds subject of the Russian Federation and municipal education during the current fiscal year on a specified target, should not exceed: for the subject of the Russian Federation-30 per cent of own revenues in constituent entities of the Russian Federation for the current financial year, excluding financial aid from the federal budget and in the current financial year borrowing;
municipal formation-15 per cent of the income of the local budget for the current fiscal year, excluding financial aid from the federal budget and the constituent entities of the Russian Federation, as well as excluding attracted in the current financial year borrowing.
In the composition of the borrowing limit does not take into account the funds involved and fully used in the current fiscal year to repay (restructuring) of existing debt;
maintenance costs (excluding the costs of repayment) of public debt and municipal debt in the current fiscal year. When this maximum limit of service costs of the public debt of the Russian Federation or of the municipality in the current financial year shall not exceed 15 per cent of the budget of the corresponding level.
T s t b I 8. General conditions of the issuance and circulation of State or municipal securities, the Government of the Russian Federation, the Supreme executive organ of State power of constituent entities of the Russian Federation, local administration claim terms and conditions of the issuance and circulation of State or municipal securities (hereinafter General conditions) in the form of normative legal acts of the Russian Federation, respectively, the Russian Federation and legal acts of the local administration. (As amended by the Federal law of 14 N 79-FZ) of the General conditions shall include: the type of securities;
form of securities issue;
the urgency of this type of securities (short-term, long-term, medium-term);

currency obligations;
features performance, providing for the right to receive other than cash, property equivalent;
restrictions (if any) alienability of securities, as well as to limit the circle of persons to whom these securities may belong on the right of ownership or other property right.
The General conditions can be specified only one form of securities issue. (Part is supplemented by federal law from 14 N 79-FZ) Article 9. Conditions of the issuance and circulation of State or municipal securities 1. Issuer of State or municipal securities in accordance with the General conditions of the document in the form of normative legal acts of the Russian Federation, normative legal acts of the Russian Federation or legal acts of the local administration, containing the terms and conditions of the issuance and circulation of State or municipal securities (hereinafter referred to as the conditions of the issuance and circulation), including reference to: 1) kind of securities;
2) the minimum and maximum dates for the treatment of this type of public or municipal securities. Issues of securities may have different terms of treatment;
3) the nominal value of one security issue within one State or municipal securities;
4) placement of State or municipal securities;
5) the procedure for exercising the rights certified by State or municipal securities;
6) income or the manner of its calculation;
7) other significant conditions of the issuance and circulation of importance for appearance, performance or termination of obligations under State or municipal securities, including securities with redemption by their issuer prior to maturity.
2. the terms and conditions of the issuance and circulation of State securities of the Russian Federation subjects or municipal securities must also contain the following information: 1) on the budget for the borrower on a year of release of State securities of the Russian Federation or municipal securities (total budget revenues, the amount of grant income, amount of interbudgetary transfers received from other budgets of the budget system of the Russian Federation, the total expenditure of the budget with the allocation of the costs of servicing the public debt , budget deficit or surplus, the upper limit of the State domestic debt or municipal debt and (or) public external debt as of 1 January of the next fiscal year, including the debt ceiling on State or municipal guarantees maximum limit of State or municipal debt);
2) summary of the magnitude of the borrower's debt as at the date of approval of the conditions of the issuance and circulation of State securities of the Russian Federation or municipal securities;
3) annual reports on the financial performance of the borrower for the last three completed financial years (budget revenues to groups and subgroups with an indication of the total budget revenues, budget classification sections of the budget with an indication of the total expenditure of the budget, the size of the deficit (surplus) of the budget). If the conditions of the issuance and circulation of State securities of the Russian Federation subjects or municipal securities accepted by the issuer prior to the adoption of the law of the Russian Federation or a legal act representative organ of municipal formation the annual budget execution report for the latest completed fiscal year, the conditions of the issuance and circulation may include budget accounting, implemented by the financial authorities of the constituent entities of the Russian Federation and municipal entities on the financial performance report for the latest completed fiscal year.
3. the terms and conditions of the issuance and circulation of State securities of the Russian Federation, as well as changes in the conditions of the issuance and circulation of securities, are subject to state registration in the manner prescribed for State registration of normative legal acts of the federal bodies of executive power.
4. the terms and conditions of the issuance and circulation of State securities of the Russian Federation subjects, or municipal securities, as well as changes in the conditions of the issuance and circulation of securities, are subject to state registration federal executive body engaged in registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities.
5. Rules for State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities, as well as changes in the conditions of the issuance and circulation of securities, shall be established by the Government of the Russian Federation.

6. Conditions of the issuance and circulation of State securities can be provided for the right of redemption of Government securities by the issuer prior to maturity with the possibility of subsequent treatment if it is stipulated by the General conditions, in compliance with the requirements (including the definition of foreclosure rates), established by the budgetary legislation of the Russian Federation.
(Article in the Editorial Office of the Federal law of 14 N 79-FZ) t s t b I 10. The grounds for refusal in State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities (as amended by the Federal law of 14 N 79-FZ), grounds for refusal in State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities, as well as changes in the conditions of the issuance and circulation of securities may serve as: (as amended by the Federal law of 14 N 79-FZ) violation by the issuer of the budgetary legislation of the Russian Federation, as well as the legislation of the Russian Federation on securities;
the discrepancy presented for State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities requirements of the legislation of the Russian Federation, as well as other normative legal acts of the Russian Federation; (As amended by the Federal law of 14 N 79-FZ) violation by the issuer rules and limits established by the representative and executive bodies of State power of the constituent entities of the Russian Federation and bodies of local self-government in accordance with this federal law and with the budgetary legislation of the Russian Federation. (As amended by the Federal law of 14 N 79-FZ) in case of refusal in State registration conditions of the issuance and circulation of State securities of the Russian Federation subjects, or municipal securities, as well as changes in the conditions of the issuance and circulation of securities, the Federal Executive authority responsible for the State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities , shall notify the issuer in writing of the reasons that caused the failure. The issuer has the right to appeal a denial in court. (As amended by the Federal law of 14 N 79-FZ), Article 11. The decision to release emissions (additional issue) of State or municipal securities 1. In accordance with the General terms and conditions of the issuance and circulation of the issuer decides to issue the release (additional issue) of State or municipal securities (hereinafter decision to issue (additional issue). A decision on the issue (additional issue) must include the following mandatory conditions: 1) name of the issuer;
2) start date of the placement of securities;
3) date or period of placement of securities;
4) release form (additional issue) of securities;
5) indication of the kind of securities;
6) the nominal value of one security;
7) the number of securities issue (additional issue);
8) maturity date;
9) name registrar conducting maintenance of register of holders of Government securities, the subjects of the Russian Federation or the register of owners of municipal securities, or an indication of the depositaries, who shall exercise the rights of the owners of State securities of the Russian Federation, state securities of the constituent entities of the Russian Federation and municipal securities of this issue;
10) information on compliance with the limits deficits budgets, State or municipal debt and maintenance costs State or municipal debt set by the budget code of the Russian Federation;
11) other conditions relevant to the placement, circulation of State or municipal securities, as well as for the execution of obligations on securities, including securities with redemption by their issuer prior to maturity.
2. a decision on the issue (additional issue) must be signed by the head of the issuer.
3. the terms and conditions contained in the decision on the issue (additional issue) must be published in the media and (or) disclosed by the issuer otherwise stipulated by legislation of the Russian Federation not later than two working days before the date of beginning of placement of State or municipal securities.
4. a decision on the issue (additional issue) of State securities of the Russian Federation or municipal securities is not subject to the State registration of the federal body of executive power executing State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities.
5. amendments to the decision on the issue (additional issue) of State or municipal securities in circulation, is not allowed.

(Article in the Editorial Office of the Federal law of 14 N 79-FZ) Article 11-1. Report on results of emission of State or municipal securities 1. Issuer of State or municipal securities after the reporting financial year, but not later than February 1 of the current fiscal year, the document in the form of normative legal acts of the Russian Federation, normative legal acts of the Russian Federation or legal acts of the local administration, containing the report on results of emission of State or municipal securities and includes reference to: 1) State registration numbers of editions of State or municipal securities , which was carried out during the fiscal year;
2) placement of securities;
3) securities placement date specified editions;
4) the maturity date of the securities specified editions;
5) actual price of securities offerings (as percentage of the face value);
6) quantity stationed securities these editions;
7) amount of the borrower's income from the placement of State or municipal securities of each of these issues.
2. rules for submission of the constituent entities of the Russian Federation and municipal entities to report on results of emission of State securities of the Russian Federation and municipal securities shall be established by the Government of the Russian Federation.
3. the report on results of emission of State securities of the Russian Federation or municipal securities is not subject to the State registration of the federal body of executive power executing State registration conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities.
(Article supplemented by federal law from 14 N 79-FZ) Article 12. Disclosure of State and municipal securities 1. Disclosure of State and municipal securities, as determined in accordance with the Federal law "on securities market", is carried out by means of: 1) publication of normative legal acts of the Russian Federation, normative legal acts of the Russian Federation or legal acts of the local administration-general conditions adopted in accordance with this federal law;
2) publication of normative legal acts of the Russian Federation, normative legal acts of the Russian Federation or legal acts of the local administration-terms and conditions of the issuance and circulation of, taken in accordance with this federal law;
3) publication and (or) other issuer disclosure stipulated by the legislation of the Russian Federation in a way the information contained in the decision on the issue (additional issue), not later than two working days before the date of beginning of placement;
4) publication and (or) other issuer disclosure stipulated by the legislation of the Russian Federation way of information related to the decision on the issue (additional issue), including information on the amount of the next coupon on State or municipal securities with variable coupon income in accordance with the terms and conditions of the issuance and circulation of and decision on the issue (additional issue);
5) issuance by the issuer of the report on results of emission of State or municipal securities issued in accordance with this federal law.
2. The publication referred to in this article, normative legal acts of the Russian Federation, normative-legal acts of the constituent entities of the Russian Federation or legal acts of the local administration, as well as changes to them shall be exercised in accordance with the legislation of the Russian Federation.
3. Along with the disclosure of the information referred to in this article, the executive authorities of the constituent entities of the Russian Federation and local government authorities are required to publish quarterly reports on execution of the budgets of the constituent entities of the Russian Federation and local budgets. While issuers of State securities of the Russian Federation and municipal securities are obliged to publish monthly data on the amount of the borrower's debt.
4. Disclosure standards on State securities of the Russian Federation, contained in the decision on the issue (additional issue) of State securities of the Russian Federation and in the report on results of emission of these securities shall be established by the Government of the Russian Federation.

5. Disclosure standards on State securities of the Russian Federation subjects or municipal securities contained in the decision on the issue (additional issue) of Government securities of the constituent entities of the Russian Federation or the municipal securities and a report on results of emission of these securities are established by the federal body of executive power executing authority allegation disclosure standards on State securities of the Russian Federation and municipal securities contained in the decision on the issue (additional issue) of Government securities of the constituent entities of the Russian Federation or the municipal securities and a report on results of emission of these securities.
(Article in the Editorial Office of the Federal law of 14 N 79-FZ), chap. IV. PECULIARITIES of EXECUTION of OBLIGATIONS on the State and municipal securities with t a t b I 13. (Repealed-Federal Act of 26.04.2007 N 63-FZ) t s t b I 14. Issuer's liability insurance for performance of the obligations of State securities of the Russian Federation and municipal securities 1. In cases stipulated in the general terms and conditions of the issuance and circulation of State securities of the Russian Federation and municipal securities, the issuer is entitled to undertake insurance liability for performance of obligations under the securities in accordance with the civil legislation of the Russian Federation. (As amended by the Federal law of 14 N 79-FZ) of the terms of a contract liability insurance must be contained in the decision on the issue (additional issue). (As amended by the Federal law of 14 N 79-FZ)
2. (repealed-Federal Act of 14 N 79-FZ) Article 15. Features of granting and enforcement of State and municipal safeguards for obligations which have arisen as a result of the implementation of the issue of State and municipal securities 1. Obligations arising from the implementation of the issue of State and municipal securities, can be guaranteed by the Russian Federation, the Russian Federation and municipal education.
2. the procedure for the granting and enforcement of State and municipal guarantee is governed by the budgetary legislation of the Russian Federation, taking into account the peculiarities stipulated by this federal law.
3. decision on the issue (additional issue) must be specified securities information on the conditions of State or municipal guarantee provided by the Russian Federation, respectively, subject of the Russian Federation, municipality (guarantor) in the enforcement of the obligations of the issuer (the principal), arising from the implementation of recent loan by issuing securities, these securities owners (beneficiaries).
4. rights of the guarantor requirements for State or municipal guarantees are considered to be transferred to the new owner (beneficiary) securities secured by State or municipal guarantee from the date of transition to him ownership of these securities.
5. the guardian of the State or municipal guarantee shall bear subsidiary liability for the guaranteed them an obligation.
6. the guardian of the State or municipal guarantee reserves the right to refuse the securities owner (beneficiary) to meet his demands if the latter in accordance with the legislation of the Russian Federation does not have the right to exercise rights on securities.
(Article in the Editorial Office of the Federal law of 14 N 79-FZ) t s t b I 16. The entry into force of this federal law 1. This federal law shall enter into force on the day of its official publication.
2. Article 7 of this federal law shall be valid until the date of entry into force of the budget code of the Russian Federation, establishing the limit value of debt, the maximum volume of the funds allocated for financing the budget deficit at the appropriate level for the current financial year, and the marginal cost of servicing of State or municipal debt.
3. invite the President of the Russian Federation and to entrust the Government of the Russian Federation to bring its normative acts in compliance with this federal law.
4. The Government of the Russian Federation to ensure the development and approval of the procedure for the formation of State registration number being assigned to editions of State and municipal securities, registration of normative legal acts containing the conditions of issue of securities of subjects of the Russian Federation and municipal securities, disclosure standards on State and municipal securities is contained in the decision to release and report on results of emission of State and municipal securities as well as approve the form and procedure for submission of the constituent entities of the Russian Federation and municipal entities to report on results of emission of State and municipal securities.
The President Of The Russian Federation, B. Yeltsin

Moscow, Kremlin, N July 29, 1998 136-FZ