On leasing (statements of the Mejlis of Turkmenistan, 1999, no. 3, p. 45) (with changes and additions made by the Turkmenistan law dated 31.03.2012. No. 297-IV) this law determines the legal, institutional and economic framework of leasing and is aimed at attracting investments on the basis of leasing activity.
 
Article 1. The basic concepts used in this law by this Act used the following concepts: leasing relations arising in the transfer fee for use by the lessee resulting from the lease contract of the property, which is manufactured or purchased the property of the lessor to the lessee;
lessor-the natural or legal person engaged in the transfer of the subject of leasing in the enjoyment of the lessee leasing Treaty;
lessee-the physical or legal person under the contract of leasing in the use of the leased object;
the seller of a subject of leasing-physical or legal entity which acquires the lessor the leasing subject.
 
Article 2. Leasing legislation 1. Leasing legislation consists of this law and other normative legal acts of Turkmenistan, regulating the relations of leasing.
2. If the international treaties of Turkmenistan envisages provisions other than those contained in this Act, the provisions of the international treaty shall apply.
 
Article 3. Leased object 1. Subject of leasing can be enterprises and other property complexes, buildings, equipment, vehicles and other movable and immovable property, pertaining to fixed assets.
2. Subject of leasing cannot be Lland and other natural objects, as well as property, free circulation is prohibited in Turkmenistan or for which a special treatment.
 
Article 4. Leasing entities 1. The subjects of leasing may be the lessor, lessee and seller of a subject of leasing.
2. Any of the subjects of leasing can be both resident and non-residents of Turkmenistan.
3. In respect of a specific leased assets may not be combined in one person: the lessor and the lessee under the lease contract;
lender lessor and lessee of the subject of leasing.
 
Article 5. Domestic and international leasing 1. When internal leasing leasing subjects are residents of Turkmenistan.
2. In the implementation of the international leasing either lessor or lessee is non-resident in Turkmenistan.
 
Article 6. Lease contract 1. The lease contract can be in the form of a multilateral agreement involving the lessor, lessee and seller of leasing object or a bilateral agreement between lessor and lessee.
2. At the conclusion of the bilateral agreement between lessor and seller of leasing of subject of leasing an additional contract for the sale of the leasing object, if the object of leasing is not the property of the lessor (manufactured).
3. the subjects of leasing can be related treaties on attracting money, mortgage, surety or otherwise.
 
Article 7. The contents of the lease contract 1. Leasing contract, in addition to the provisions established in article 600 of the Civil Code of Turkmenistan, shall contain: the name of the parties;
subject of leasing, the terms and conditions of its transfer;
the term of the leasing contract;
the rights and obligations of the parties related to the acquisition, transfer and maintenance of leasing object;
the actions of the parties upon termination of the lease contract;
responsibility of the parties;
legal addresses and bank details of the parties;
date and place of conclusion of the contract.
2. By agreement of the parties to the lease agreement may include the following conditions: insurance of leasing object;
force majeure;
the order of subjects of leasing leasing Treaty verification.
The lease agreement may be incorporated and other conditions in accordance with the legislation of Turkmenistan.
3. leasing agreement may be included in the list, the volume and cost of additional services provided by lessor before use, and during the course of the lessee leased facilities.
4. Lease Agreement is subject to notarization, if one of the parties to the contract is a natural person.
 
Article 8. Expiration date of the lease agreement lease agreement expiration date is fixed and must be less than 80 per cent of the lifetime of the object of lease if its lifetime is less than 10 years; or exceed 70 per cent of the lifetime of the object of lease if its lifetime is more than 10 years.
While the estimated residual value of the leased assets at the end of the term of the lease contract shall be less than 20 percent of its original cost.
 
Article 9. Change and cancellation of lease modification and termination of the lease contract are possible by agreement of the parties, unless otherwise provided by the legislation of Turkmenistan or leasing contract.
 
Article 10. Leasing activity 1. Leasing-kind entrepreneurship lessor on the exercise of the functions specified in the leasing agreement.
2. The lessor may be:

leasing companies (firms) are legal entities created specifically for the implementation of the leasing activity for which it is the principal. The founders of the leasing companies (firms) may be legal entities and (or) physical persons both residents and non-residents of Turkmenistan;
banks, in the constituent documents that provide for leasing activities;
legal persons, for whom leasing is not the default, and if such activities provided in the constituent documents;
natural persons-entrepreneurs.
 
Article 11. Subleasing the lessee shall have the right to hand over the object of leasing, leasing Treaty obtained temporary possession and use of a third party (sublease) with the written consent of the lessor, while remaining accountable to them on lease contract.
Sublease agreement is executed. While the Treaty of subleasing the provisions of this Act apply with respect to sublizingodatelû, sublizingopolučatelû and seller of leasing object respectively as to the lessor, lessee and seller of a subject of leasing.
Subleasing contract term may not exceed the period of validity of the contract of leasing.
 
Article 12. The rights and obligations of the lessor the lessor has the right to monitor the lessee leasing agreement terms and conditions and other agreements;
check the status and conditions of use of leasing object;
in cases stipulated by the legislation of Turkmenistan and the leasing agreement, require early making of all leasing payments or termination of the lease contract with damages or repayment of leasing object;
with the consent of the lessee to reconcile the performance of a contract of sale in the event of a breach of its terms or to propose another lessee leasing object;
request and receive the information needed to exercise financial control and the status of a subject of leasing;
receiving the auditor's report on financial condition of the lessee;
attend without the right to vote at general meetings of shareholders and of the management bodies of the lessee on the subject of leasing, stating their requirements;
have other rights under the lease agreement.
The lessor shall: produce or purchase the Treaty leasing object;
buying property to the lessee, notify seller of leasing object that the property is intended for leasing;
to pass to the lessee leasing object is able to lease agreement conditions and its purpose;
take the subject of lease from the lessee upon expiry of the lease contract, if it is stipulated in the leasing agreement;
timely and full implementation of other obligations under the lease agreement.
 
Article 13. The rights and obligations of the lessee, the lessee has the right to: demand from lessor the leasing treaty obligations, as well as damages caused by non-performance or improper performance of the contract of leasing;
submit directly to the vendor of the leasing subject requirements for quality and completeness, delivery time and other requirements arising from the sales contract if it is required by the lease agreement;
to demand the dissolution of the lease agreement and (or) to abandon the subject of leasing in the case of discovery during its acceptance of deficiencies, which cannot, that does not allow further use of leasing object;
in case of early termination of the lease contract to claim a refund of previously paid as advance lease payments and other amounts after deducting the cost of the benefits that he had learned over the period of use of leasing object;
a lump sum to make the balance due under the lease contract lease payments with a simultaneous termination of the leasing contract and the acquisition of leased assets in property when the foreclosure of a third person on the leasing object;
have other rights under the lease agreement.
The lessee is obliged to: adopt and properly use the leased object, contain it in accordance with the terms of the lease contract;
on time and in full, to pay the lease payments;
produce at their own expense, to the current repair of the subject of leasing, bear other expenses on its content, unless otherwise stated in the lease agreement;
to reimburse the lessor of its investment and to pay him remuneration;
inform the lessor about the status of a subject of leasing and its financial situation;
return the leased asset when the lease contract, if after the expiry of the lease contract not provided his ransom;
timely and full implementation of other obligations under the lease agreement.
 
Article 14. Rights and obligations of the seller, the seller of the object of lease leased assets have rights and bear responsibilities in accordance with the legislation of Turkmenistan and the contract of sale of the subject of leasing and, in appropriate cases, the leasing agreement.
 
Article 15. Assignment of lessor and lessee of its rights to third parties 1. The lessor may assign to a third party in whole or in part of its rights under the contract of leasing and sales contract of leasing object with notification to the lessee.

2. The lessee may assign to a third party in whole or in part its rights under the lease contract with the permission of the lessor and other rights of subjects of leasing.
3. in case of transfer of ownership from the lessor to third party leasing contract concluded with the lessee remains valid for the new owner.
 
Article 16. Ownership of the leased object 1. Leasing object throughout the duration of the lease contract is the property of the lessor.
2. The right to use the subject of leasing is owned by the lessee only under the conditions specified in the leasing agreement.
3. Ownership of the leased asset passes to the lessee upon expiry of the lease contract in accordance with the terms of the lease contract or in case of early performance of lease contract upon payment of all leasing payments.
4. the lessee Made separable improvements leased assets are his property, unless otherwise provided by the contract of leasing.
5. If the lessee with the written consent of lessor produced at the expense of own means of improving leasing object, inseparable without harm to the object of lease, the lessee has the right after the termination of the lease agreement for the reimbursement of the cost of such improvements, unless otherwise provided by the contract of leasing.
6. In the event of bankruptcy of the lessee, seizure or confiscation of its property leasing object is separated from the common property of the lessee and the lessor must refund. The order of damages shall be determined by the legislation of Turkmenistan and to the lessor in the leasing agreement.
 
Article 17. Leasing object registration 1. Subjects of leasing, requiring registration in State bodies, are registered in the name of the lessor or lessee in the manner prescribed by the legislation of Turkmenistan. When this is necessary to indicate in the property records information about the owner and the owner (user) of the subject of leasing.
2. In case of termination of the lease contract and refund (withdrawal) of the object of lease lessor leased if necessary, subject to re-registration.
 
Article 18. Depreciation of leased assets 1. Depreciation on leased property is provided shall be calculated in accordance with the legislation of Turkmenistan.
2. To ensure compliance with the requirements of article 8, the parties of the leasing contract are entitled by mutual agreement to apply accelerated depreciation of leasing object in accordance with the legislation of Turkmenistan.
 
Article 19. The use of leased assets as collateral 1. The lessor has the right to use the leased asset as collateral, subject to prior notification to the lessee, unless otherwise provided by the contract of leasing.
2. The lessee shall not be entitled to use the leased asset as collateral.
3. If the object of leasing is purchased at the expense of attracted funds and is the subject of pledge under a contract for fundraising, his repeated bail is not allowed.
 
Article 20. Insurance of the object of lease lessor may take out insurance of leasing object until it is transferred to the lessee and may include the cost of its investment costs.
 
Article 21. Risks associated with the subject of leasing all risks associated with the subject of leasing, including risks of its accidental loss (destruction) or accidental damage, theft, as well as premature wear, damage shall be borne by the lessee from the moment of actual receipt of the object of lease, unless otherwise provided by the contract of leasing.
 
Article 22. Investment costs of lessor Under investment costs of lessor refers to costs and expenses in connection with the acquisition and use of the leased asset by the lessee, including: the cost of leasing object;
storage costs, transportation, installation and erection of a subject of leasing if leasing contract provides otherwise;
staff training costs associated with the use of leasing object;
the costs of customs clearance and payment of customs duties, tariffs and duties, as well as taxes paid upon importation of subject of leasing in the customs territory of Turkmenistan;
costs of insurance of leasing object, if the lease agreement provides otherwise;
interest expenses for the use of liabilities and deferred payment provided by the vendor of the leasing object;
fee for providing the lessor guarantees and warranties in connection with the object of leasing;
costs associated with the acquisition and transfer of the subject of leasing, as well as the cost of its maintenance and servicing;
the fee of the trading agent;
the costs for the registration of the subject of leasing, leasing of the Treaty provision of additional services;
other charges associated with the use and exploitation of the object of lease.
 
Article 23. Lease payments 1. User fees given on lease contract subject of leasing is effected by the lessee, in the form of leasing payments.
Lease payments are apportioned for the duration of the lease contract and paid in installments. The size and frequency of lease payments leasing agreement shall be established.

2. in the implementation of the leasing payments in kind, including products manufactured using the subject of leasing, calculations are made at cost (price) as determined by the agreement of the parties to the contract of leasing.
 
Article 24. Responsibility of subjects of leasing for non-compliance with the obligations prescribed by the lease agreement leasing entities bear responsibility in accordance with the lease agreement and the current legislation of Turkmenistan.
 
Article 25.  Resolution of disputes on lease contract disputes arising from leasing agreements shall be settled judicially in accordance with the legislation of Turkmenistan.
Disputes arising from contracts of international leasing, may be prosecuted in accordance with the laws of the country, resulting from the Treaty.
 
President of Turkmenistan Saparmurat Turkmenbashi mountains. Ashgabat, September 15, 1999 year ¹ 391-I