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Article 131. The Requirements to Securities

1. The types of rights which are certified by securities, the obligatory details of securities, and the requirements with regard to the pro-forma of a security and any other necessary requirements, shall be determined by legislative acts, or in accordance with the procedure established thereby.

2. The absence of obligatory details concerning a security or the non-compliance of a security with the pro-forma established therefor, shall entail its invalidity.

Article 132. The Conveyance of Rights Associated with Securities

as amended by (12) Law of No. 211 of 2nd March 1998 of the Republic of Kazakhstan. Concerning the Introduction of Amendments and Additions to the Civil Code of the Republic of Kazakhstan (General Part), and to the Decree of the Supreme Soviet of the Republic of Kazakhstan "Concerning the Implementation of the Civil Code of the Republic of Kazakhstan (General Part)".

1. In order to convey to any person the rights certified by a bearer's security, it shall be sufficient to hand the security to that person.

2. The rights certified by a registered name security shall be conveyed in accordance with the procedure which is established for the transfer of claims (cession). In accordance with Article 347 of this Code, a person who cedes the rights associated with a security shall be liable for invalidity of relevant claims, but not for its implementation. In a transfer of the rights associated with a registered name security to another person, the security in the transfer shall be annulled, and another security shall be issued to the new holder.

Legislative acts may stipulate re-assignment of rights under registered shares.

3. The right associated with order securities shall be conveyed by means of making on that security a conveyance inscription, the endorsement. The person who transfers the rights associated with an order security (endorser) shall be liable not only for the existence of the right but also for its exercise.

An endorsement executed on a security shall transfer all the rights certified by the security to the person to whom or by whose order the rights associated with the security (of the endorsee) are transferred. The endorsement may be blank (without any indication of the person to whom the consideration must be addressed).

The endorsement may be restricted only by the order to exercise the rights certified by the security, without any conveyance of those rights to endorser (pre-nomination endorsement). In this case the endorser shall act as a representative.

Article 133. Execution with Regard to Securities

1. The person that issued a security and all the persons who endorsed it shall be jointly liable to its legitimate owner. In the case of satisfying the claims of the legitimate owner of a security, related to the execution of the obligation certified by it, by one or several persons from amongst those liable in relation to the security, they shall acquire the right to revert claim (regress) to the other persons who had become liable in relation to the security prior to them.

2. The refusal to execute the obligations certified by a security with the reference to the lack of basis for the obligations or to its invalidity shall not be allowed.

3. The owner of a security who detected fraud or forgery of the security shall have the right to present the person that conveyed the security to him with the claim to properly execute the obligation certified by the security and to compensate losses.

4. The rights associated with securities held by any illegitimate holder shall not be exercised.

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