News (#10 October 2018)


Recording of notarial acts execution

On 6 September, Draft Law УSTOP Raiding!Ф No. 9063 was registered with the Verkhovna Rada (on amendments to certain legislative acts of Ukraine concerning the protection of rights of property owners through audio and video recording of the process of notarial acts execution). The document suggests enshrining:

1) mandatory and full recording, using sound and video recording technical means, of the process of entering into the following transactions:

Ч agreement on alienation of a share in authorised capital by a participant in a company;

Ч agreement on alienation of shares held by a shareholder of a public joint-stock company;

Ч sale and purchase agreement concerning a land plot, a joint property complex, a residential house (apartment) or other immovable property;

Ч execution endorsement on documents confirming a debt;

Ч sale and purchase agreement concerning securities turnover;

Ч power of attorney if a transaction, for entering into which it is issued, is subject to notarisation.

2) mandatory notarisation of land lease agreements entered into with an individual (except when a landlord is an individual entrepreneur), with full sound and video recording;

3) mandatory introduction of parties to a transaction with the provision of their IDs, with sound and video recording of entering into transactions;

4) mandatory inclusion in the State Register of Rights of sound and video recording materials made during entering into transactions;

5) ban on executing a transaction by a notary, the subject of which is land plots, corporate rights and/or immovable property, without full sound and video recording of the process of entering into a transaction, and liability for violating such a provision (revocation of notary licence).

Guarantees for credit union depositors

On 13 September Draft Law No. 9078 On the Regulation of Credit Unions was introduced. The document suggests making credit unions participants in the Deposit Guarantee Fund (DGF). Just like with bank clients, they want to guarantee a maximum of UAH 200,000.

Guarantees will only apply to deposits made with credit unions. All details of the participation of credit unions in guarantee system must be set forth in the Law On Individual Deposit Guarantee System.

The proposed version of the law suggests recognising a credit union as distressed if it: allowed a reduction by more than 5% of the regulatory capital adequacy ratio; failed to perform deposit obligation within 5 days; allowed a 10% reduction in the liquidity reserves; the amount of distressed debts under loans exceeds 60% of the asset amount. If a credit union allows a one-third reduction in the regulatory capital adequacy ratio or fails to perform 2% of the obligations within five days, it may be recognised as insolvent. Furthermore, the draft law contains a mechanism for liquidating a credit union.

Individual entrepreneurs and legal entities will be able to become members and obtain financing from credit unions: farming enterprises, cooperatives, trade unions with the status of primary or local, religious organizations.

Powers of credit unions will also be expanded. They will be able to lease out their property, act as intermediaries when selling financial services, for instance insurance, refinance mortgages (except for issuing mortgage bonds and mortgage certificates), provide financial advice, manage accounts and payments, issue and maintain electronic means of payment.

Parliament supported second package of laws within framework of #MaskShowStop initiative

On 18 September the Ukrainian Parliament adopted the Draft Law On Amendments to Certain Legislative Acts of Ukraine on Ensuring Compliance with the Rights of Participants in Criminal Proceedings and other Persons by Law-enforcement Agencies During the Pre-trial Investigation, developed by the Ministry of Justice within the framework of continuous implementation of the #MaskShowStop initiative.

According to the Minister Pavlo Petrenko, the Draft provides for, among other proposed innovations, granting the participants of proceedings the right to file a petition to close criminal proceedings on the basis of the absence of an offence, absence of elements of crime in the action, entry into force of a law abolishing criminal liability, or if a tax compromise has been reached.

The document also provides an opportunity for a person, whose rights or legitimate interests are limited during a pre-trial investigation, to file a petition to the investigating judge to close criminal proceedings if the deadlines set for the pre-trial investigation have expired.

When developing the Draft, it was envisaged to increase the liability of officials and law-enforcement officials for improper performance of their duties during pre-trial investigation.

Participants in criminal proceedings are guaranteed the right to appeal against the decision of the investigating judge on extending removal from office during the pre-trial investigation. Current legislation provides for the possibility to appeal only against the decision of the investigating judge on extending the period of detention in remand or house arrest.

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