phone icon+7 (495) 649-87-12
divider

Innovations in regulation of financial transactions


 

On 1 June 2018 Federal Law № 212-FZ of 26.07.2017 “On Amendments to Parts One and Two of the Civil Code of the Russian Federation and certain Legislative Acts of the Russian Federation” came into force. This time the amendments concern the provisions on loan agreements, bank deposit agreements, bank accounts and loan agreements.

 

  • New type of contract – escrow

 

This innovation is aimed at expanding the list of instruments for the calculation of transactions, creating an alternative to existing escrow bank accounts. Under the new type of escrow relationship virtually any property can be deposited to an escrow account: cash, documentary securities, documents, non-cash funds, non-documentary securities. The mechanism of an agreement assumes that a person (the depositor) undertakes to transfer property to an escrow agent in order to fulfill an obligation to transfer this property to another person (the beneficiary), in whose favor a deposit is made. An escrow agent undertakes to ensure the safety of property and transfer to a beneficiary in the performance of the grounds specified in the contract. The property that has entered the escrow account will be protected from collection in the event of bankruptcy of any of the escrow parties. However, in case of bankruptcy of a depositor, the condition must occur within six months, otherwise the property will be foreclosed.

 

  • New types of bank account agreements: precious metals bank account agreement, public deposit account, joint bank account agreement, etc.

 

Joint bank account agreement can be concluded by several individuals jointly, and the rights to the funds in such an account will belong to them in proportion to the amount of funds deposited by each of them. A different ratio may be agreed on. A joint account agreement can be convenient, for example, for business partners or spouses. In this case, the spouses’ rights to the funds in the account will be assigned to the joint property, unless otherwise specified in the marriage contract.

 

  • Nominee accounts of guardians

 

The amendments are also aimed at clarifying the rules on nominal accounts of custodians and guardians. When custody and guardianship are terminated, the custodian or guardian of the beneficiary shall appoint another nominee account holder in the prescribed manner. When custody and guardianship are terminated in cases provided by law, for example, when the beneficiary reaches the age of majority, the nominal account agreement is automatically terminated, and the balance of funds is issued to the beneficiary or transferred to his account on application.

 

  • Provisions aimed at the protection of citizens-borrowers:

 

  • A new concept of “usury interest” was introduced: it can be used in relation to loans issued by a citizen or a legal entity that does not carry out professional activities of providing consumer loans. If the interest on such loans is two or more times higher than the interest normally charged in such cases and is excessively burdensome to the debtor, it may be reduced by the court. It should be noted that the court can reduce the interest on loans issued by professional borrowers, as it was confirmed by the Supreme Court of the Russian Federation № 81-KG17-25 of 6.02.2018.
  • The priority of the Law “On Consumer Credit” was fixed in the regulation of consumer loans and loans to citizens-borrowers;
  • The conditions for charging bank fees from citizens-borrowers – the amounts that banks charge the borrower in addition to interest were limited. Now they will be charged only within the limits established by the Law “On Consumer Credit (Loan)”.

 

  • Consensual model of the loan

 

Now Russian legislation provides a consensual model of the loan, and a lender may be forced to fulfill his promise to grant a loan. However, this rule does not apply to relations between citizens: for them the contract will be considered concluded only from the moment of transfer of property.

 

  • Unilateral closure of the account by the bank

 

From now on a bank may independently close the bank account unilaterally in the following cases:

  • if there is no money in the account and no transactions are carried out within two years, the bank can close the account, warning about it for two months;
  • if there are no transactions on the account, but there is a balance, a bank may demand to close the account in court. The balance will be kept in the bank for 60 days, if they are not claimed, the bank will transfer them to the Central Bank, but the bank’s client will be able to demand the money back, even if they were transferred to the Central Bank.

 

  • Payments without opening a bank account

 

Banks will be able to carry out payments by transferring orders without opening an account on the basis of the order of the payer-citizen with funds of the payer-citizen. The funds will be transferred to the recipient’s account with the same bank or with another bank.

 

  • Public deposit account

 

Such accounts may be opened by notaries, bailiffs, courts, other state bodies that accept funds from the debtor and keep them in deposit, for example, for the execution of the contract or court decision. Money from a public deposit account is sent or given to the beneficiary and can be returned to the depositor. Such accounts are opened by banks which have capital of at least 20 billion RUB. The funds held in such account may not be charged for the debts of the account owner, beneficiary or depositor.

Financial transactions


separator