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Bearer Bond Purchase
1.
Purchase of documentary and interest-bearing bearer bonds face value of which is 50 (fifty) AZN, issued by ”MuganBank” OJSC and certified by the State Committee for Securties of the Republic of Azerbaijan under state registration number AZ 200200546 on August 14, 2009.
2.
2.1 The bonds are issued by the Issuer for the term of 10 (ten) years and ensure annual interest of 2%.
2.2 Placement of the bonds is made in their face value. The Issuer charges commission from the face value of the bonds - 5% in the first 15 days, 2% in the second 15 days and 3% in the third 15 days of the placement. Repurchase of the bonds is made in their face value.
2.3 Separately serial number of each bond will take part in the stimulating lottery arranged by the Issuer in every 45 (forty five) days and allows owning the following winnings provided in the table below:
| |
Winnings |
| Amount of winnings per bond (including its face value) (AZN) |
One drawing lots |
All drawing lots |
| Number of winnings |
Amount of winnings (AZN) |
Number of winnings |
Amount of winnings (AZN) |
| 50,000.00 |
1 |
50,000.00 |
80 |
4,000,000.00 |
| 25,000.00 |
1 |
25,000.00 |
80 |
2,000,000.00 |
| 10,000.00 |
2 |
20,000.00 |
160 |
3,200,000.00 |
| 5,000.00 |
6 |
30,000.00 |
480 |
14,400,000.00 |
| 2,500.00 |
18 |
45,000.00 |
1440 |
64,800,000.00 |
| 1,000.00 |
50 |
50,000.00 |
4000 |
200,000,000.00 |
| 500.00 |
102 |
51,000.00 |
8160 |
416,160,000.00 |
| 250.00 |
430 |
107,500.00 |
34400 |
3,698,000,000.00 |
| 100.00 |
590 |
59,000.00 |
47200 |
2,784,800,000.00 |
| Total |
1200 |
437,500.00 |
96000 |
7,187,360,000.00 |
3. Interest payment on bonds and their retrieval
3.1 Interest payment on bonds is made in national currency and in cash. Interest payment is made according to maturity by means of payment coupons attached on the back side of the bond and forming its integral part.
3.2Interest payment is certified by a “Paid” stamp in the payment coupon at the back side of the bond and signed by both the treasurer and transaction officer.
3.3 In the event that Interest Payment Date falls on non-business day, the payments will be made in the following business day. No interest or compensation shall be paid for such a delay.
3.4 Interest is paid being accrued on the face value of the bond from the Bond Placement Date till the maturity of each 365 calendar days.
3.5 Interest on the face value of the bond is accrued from the day following the day when this amount was received in the bank till the day preceding the return of bond to the Issuer or otherwise its writting off from the Issuer’s account.
3.6 The face value of the bonds will be repaid in national currency (AZN), in cash or via transfer in the Bond Repayment Date. In the event that the starting date of the Bond Repayment Period falls on non-business day, the repayments will be made in the following business day. No interest or compensation shall be paid for such a delay.
3.7 The Bond Repayment Period will mature after 3650 calendar days have passed from the Bond Placement Date, within 730 (seven hundred thirty) days beginning from the day coinciding with that date.
3.8 In case of bond call, the Bondholders may demand from the Issuer to repay the face value of the bonds together with the interest accrued on the bonds, but unpaid from the Bond Placement Date, by a 10 (ten) days prior written request to the Issuer. In such a case the Issuer makes the payment of the face value of the bonds as well as the interest accrued, but unpaid on the bonds till that date.
3.9 The Issuer is entitled to redeem or recall the bonds after 365 (three hundred sixty five) calendar days have passed from the Bond Placement Date. In this case, the Issuer shall post on its official web-site (www.muganbank.az) information about the bond call at least 60 (sixty) days prior to the Bond Call Date but no earlier than 90 days.
3.10 In the event that the bond is returned to the Issuer before a year has passed from the day when it was purchased, earlier than Interest Payment Date, only the face value will be repaid to the Bondholder and the accrued interest will be paid on the Interest Payment Date.
4. Holding a stimulating lottery and payment of winnings
4.1 During circulation of the bonds the Bondholders are presented with profits in the form of winnings assigned by 8 (eight) drawing lots within each calendar year (see the table in item 2.4.1).
4.2 The lottery organiser advises the venue, date and time of the drawing lots through press or its official web-page (www.muganbank.az) on the internet at least 3 (three) days prior to the event.
4.3 Four lottery drums will be used for rotating to choose the winning numbers and amounts.
4.4 The press representative which will publish the official prize list is determined by the Issuer. The respective list published by the same press representative is an official source of reference for the lottery organiser unlike other publications.
4.5 The face value of the premium bond is included to lottery amount provided in the table in item 2.4.1.
4.6 The winner bond is retrieved and written off by the Issuer and only the winning amount and the interest accrued on the face value of the bond to that date are paid to the Bondholder.
5. Rights and Obligations of the Parties
5.1 Bondholder’s rights and obligations
5.1.1 Receive the interest in due course accrued on the face amount of the bond from the Bond Placement Date;
5.1.2 Return the bonds to the Issuer and receive the accrued interest from the Issuer during their circulation period.
5.1.3 In case of winning, receive from the Issuer the winnings and the interest accrued on the face value of the bonds till the date of drawing lots within 90 (ninety) calendar days of the publication of the prize list.
5.1.4 Demand from the Issuer to prematurely repay the face value of the bonds in case of a decision made on the liquidation or reorganisation of the Issuer or the Issuer being announced insolvent.
5.1.5 The bonds may be presented to others as they are bearer securities
5.1.6 As the bonds are bearer securities, the Bondholder bears responsibility for the lost or stolen bonds.
5.1.7 As the bonds are bearer securities, at the time of their placement the bondbuyers bear responsibility in accordance with the requirements of “Anti-Money Laundering and Anti-Terrorism Financing” law of the Republic of Azerbaijan
5.1.8 Other rights stipulated by the legislation of the Republic of Azerbaijan.
5.2 Issuer’s rights and obligations
5.2.1 The Issuer is liable to ensure the execution of Bondholder’s rights fixed by the bonds.
5.2.2 The bonds may be recalled by the Issuer, being demanded for premature payment.
5.2.3 The Issuer shall post on its official web-site (www.muganbank.az) information about the bond call at least 60 (sixty) days prior to the Bond Call Date but no earlier than 90 days.
5.2.4 The Issuer is entitled to redeem or recall the bonds after 365 (three hundred sixty five) calendar days have passed from the Bond Placement Date (see item 3.9).
5.2.5 No register is maintained for the bonds as they are bearer securities.
5.2.6 As the bonds are bearer securities, when a winning or non-winning bond is returned to the Issuer by not the Bondholder himself/herself but another bearer requesting payment, according to the terms and conditions of this contract the prize amount (in case of a winning bond) and the interest accrued on the face value of the bond will be paid by taking notes of the details of the ID card of such person in certain reporting forms (see item 5.1.5).
5.2.7The winning bonds will be paid based on the official prize list published by the press representative having the lottery organiser’s permission for the publication or issued by a special order. Payment of winnings is not made on the basis of prize lists published by unauthorised press representatives. (see item 4.4)
5.2.8 The Issuer will proceed with giving out the winnings upon the release of the next edition of the newspaper in which the official prize list is published. If any mistake with the list, the correction shall be published. The Issuer (lottery organiser) shall ensure that its head office and branches provide the Bondholders with prize lists in case of their request.
5.2.9 Those who falsify the bonds or use false ones shall bear responsibility according to the applicable legislation of the Republic of Azerbaijan.
6. Responsibility of the Parties
6.1 The Parties shall bear responsibility for breach or improper performance of their obligations hereunder according the legislation of the Republic of Azerbaijan.
6.2 The Issuer shall bear responsibility for any loss or damage incurred by the Bondholder as result of the Issuer’ s default hereunder
6.3 The Issuer shall bear no responsibility for illegal acquisition of money resources paid by the Bondholder for the bond purchase.
7. Force-majuer
7.1 Neither party shall be responsible to the other party for failure in performance of their obligations hereunder due to circumstances beyond the reasonable control of such party (including, but not limited to natural calamities, military actions, economical crises, devaluation, modifications in the legislation), provided that such a circumstance had direct effect upon peformance of the obligations hereunder.
7.2 In this case performance of the obligations hereunder is deferred for the duration of the effect of the force-majuere circumstance.
7.3 The affected party shall advise the other party by a written notice of the beginning or end of the situation which prevents the performance of the obligations hereunder.
8. Other provisions
8.1 Sale of defective or impaired bonds is prohibited.
8.2 Bonds are purchased in the absence of doubt about their genuineness, raffle in stimulating lotteries and interest accrued on them are paid out.
8.3 Each bond is entitled to be paid in case of:
8.3.1 no amendment made to the serial number of the bond;
8.3.2 (i) no cutting in the part of the bond where its amount is indicated by letters
(ii) no “paid” stamp or handwritten notes concerning the payment of the bond or
(iii) no hidden trace of previous payments.
8.3.3 Dirty, worn-out or casually damaged bond may be repaid provided that half of such bond or the serial number on it (other payment qualities) remained.
8.3.4 If the bond has been broken into several parts it may be replaced (provided that one of the parts was bigger than the half of the bond).
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