FEDERAL LAWNO. 135-FZ OF JULY 29, 1998ON EVALUATION ACTIVITY IN THE RUSSIAN FEDERATION

(with the Amendments and Additions of March 21, November 14, 2002,January 10, February 27, 2003, August 22, 2004, January 5, July 27,2006, February 5, July 13, 24, 2007, June 30, 2008)

Adopted by the State Duma on July 16, 1998Approved by the Federation Council on July 17, 1998

Chapter I. General Provisions (Articles 1 - 8)Chapter II. The Grounds and Conditions for Making (Articles 9 - 17)EvaluationsChapter III. Regulation of Evaluation Activity (Articles 18 - 24.10)Chapter IV. Concluding Provisions (Articles 25 - 26)

Chapter I. General Provisions

Article 1. Legislation Regulating Evaluation Activity in the Russian FederationEvaluation activity shall be exercised in compliance with the international treaties made by the Russian Federation, this Federal Law, as well as other federal laws and other normative legal acts of the Russian Federation regulating the relations which arise while exercising evaluation activity.

Article 2. Relations Regulated by the Present Federal LawThe present Federal Law defines the legal principles for regulating evaluation activity for the purposes of transactions with the objects of evaluation, where said objects belong to the Russian Federation, to the constituent regions thereof, or to municipal units, individuals and legal entities, as well as for other purposes.

Article 3. The Concept of Evaluation ActivityFor the purposes of the present Federal Law, evaluation activity shall be understood to mean a professional valuer's work to determine the market or some other value of an object undergoing evaluation.For the purposes of the present Federal Law, the market value of an object undergoing evaluation shall be understood to mean the most likely price at which the object undergoing evaluation in question can be alienated on the open, competitive market, when the parties to the deal act reasonably and have all necessary information, and when the price of the deal is not affected by any emergency circumstances; that is, when:one of the parties to the deal is not obligated to alienate the object undergoing evaluation, and the other party is not obligated to accept the deal;the parties to the deal are well informed about the object of the deal and act in their own interests;the object undergoing evaluation is put up on the open market in a public offer typical for similar objects;the price of the deal represents a reasonable remuneration for the object undergoing evaluation, and the deal is not concluded by the parties under coercion from anybody;the payment for the object undergoing evaluation is expressed in terms of money.

Article 4. Persons Engaging in Evaluation ActivityPersons engaging in evaluation activity shall be deemed the natural persons who are members of one of self-regulated organisations of valuers and who have insured their liability in compliance with the requirements of this Federal Law (hereinafter referred to as valuers).A valuer may independently exercise evaluation activity in private practice, as well as on the basis of a labour contract between a valuer and a legal entity complying with the terms established by Article 15.1 of this Federal Law.

Article 5. Objects of evaluation shall include:individual material objects (items);a set of items comprising the property of a person, including property of a specific type (movable or

immovable, including enterprises);the right of ownership and other proprietary rights to property, or to the specific items comprising property;a right of claim, liability (indebtedness);works, services, information;other objects of civil rights which may be involved in civil transactions under Russian Federal legislation.

Article 6. The Right of the Russian Federation, the Constituent Regions Thereof, and Also of Municipal Units, Individuals and Legal Entities to Conduct Appraisals of the Objects Belonging to ThemThe Russian Federation, the constituent regions thereof, and also municipal units, individuals and legal entities shall have the right to have a valuer appraise any objects belonging to them on the grounds and terms laid down by the present Federal Law.The right to have an object appraised shall be unqualified, and shall not be subject to the procedures established by Russian Federation legislation for keeping state statistical records, and for drawing up business accounts and reports. This right shall also apply to the conduct of a second appraisal of the object undergoing evaluation. The results of the appraisal of the object undergoing evaluation may be used for correcting data in business accounts and reports.The results of the appraisal of the object undergoing evaluation may be appealed against by interested parties in accordance with the procedure established by Russian Federal legislation.

Article 7. Presumption in Setting a Market Value on an Object Undergoing EvaluationWhere a normative legal act which makes it obligatory to conduct an appraisal of the object in question, or where the contract to appraise the object (hereinafter referred to as the Contract) does not specify a particular type of value to be set on the object undergoing evaluation, the market value of the object shall be set.This rule shall also be applied where the pertinent normative legal act uses terms not prescribed by the present Federal Law or by valuation standards to define the type of value to be set on the object undergoing evaluation, including the terms "actual value", "reasonable value", "equivalent value", "realistic value", and others.

Federal Law No. 13-FZ of February 5, 2007 amended Article 8 of this Federal LawSee the Article in the previous wording

Article 8. Obligatory Appraisal of Objects Subject to EvaluationWhere a deal involves objects subject to evaluation belonging in full or in part to the Russian Federation, to the constituent regions thereof, or to municipal units, an appraisal of these objects shall be obligatory, including in cases that involve:determining the value of objects which belong to the Russian Federation, to the constituent regions thereof, or to municipal bodies, for purposes of their privatization or transfer to trust management, or for granting them on lease;using as security objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units;selling or otherwise alienating objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units;transferring debt obligations connected with objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units;transferring objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units as a contribution to the charter capital or funds of legal entities,and also when a dispute over the value of the object subject to evaluation arises, including in cases concerning:the nationalization of assets;the granting of hypothecary credits to individuals and legal entities where a dispute arises over the value of the thing hypothecated;the drawing up of a marriage settlement and the dividing of the property of divorcing spouses at the request of one of the parties or both parties where a dispute arises over the value of this property;the redeeming of assets from the owners for state or municipal needs, or the applying of other forms of requisition prescribed by Russian Federation legislation;the appraisal of objects subject to evaluation for the purpose of verifying the correctness of tax

payments where a dispute arises over the tax base calculated.The present Article shall not extend to relations emerging in the case of disposal by state or municipal unitary enterprises or state and municipal institutions of the property attached thereto for economic management or operative control, except for cases when the disposal of property under Russian law is permitted with the consent of the owner of the property and also to relations emerging in the case of disposal of state or municipal property when state or municipal enterprises, state and municipal institutions are being re-organised and in the instances established by the Federal Law on the Specifics of Administration and Disposal of Railway Transport Property and the Federal Law on the Specifics of Management and Disposal of the Property and Stocks of Organisations Engaged in the Activity of Atomic Energy Use and on Amending Some Legislative Acts of the Russian Federation.

Federal Law No. 108-FZ of June 30, 2008 supplemented Article 8 of this Federal Law with Part 3

In respect of the state or municipal property transferred under a concession agreement by an awarding party to a concessionaire the establishment of the market value of such property is not compulsory, except as otherwise established by a federal law.

Chapter II. The Grounds and Conditions for Making Evaluations

Article 9. The Grounds for Appraising an Object Undergoing EvaluationThe grounds for evaluation shall be a contract of evaluation of the objects mentioned in Article 5 of this Federal Law which is made by a client with a valuer or with the legal entity with which a valuer has concluded a labour contract.In the cases specified by Russian Federal legislation, the object undergoing evaluation may be appraised by the valuer on the grounds of a ruling by a law court, an arbitration court, an arbitration tribunal, and also by decision of an authorized body.The law court, arbitration court or arbitration tribunal shall be free in its choice of a valuer. The expenses on conducting an appraisal of the object undergoing evaluation, and also the pecuniary remuneration of the valuer shall be subject to refund (or payment) in accordance with the procedure prescribed by Russian Federal legislation.

Article 10. Obligatory Requirements for the Contract of EvaluationThe contract of evaluation shall be concluded in a simple written form.The contract of evaluation must contain the following:object undergoing evaluation;type of property cost (evaluation method);amount of monetary remuneration for evaluation;data on obligatory insurance of the valuer's civil liability in compliance with this Federal Law;name of the self-regulated organisation of valuers of which the valuer is a member and location of this organisation;indication of the standards of evaluation activity which are to be applied in evaluation;indication of the extent of, procedure and grounds for, additional liability with respect to the liability, established by the civil legislation and Article 24.6 of this Federal Law, of a valuer and the legal entity with which a valuer has made a labour contract.The contract of evaluation made by a client and the legal entity must show data on the valuer or valuers who are to carry out the evaluation, including the family name, first name and patronymic of the valuer or valuers.The contract of evaluation of both a single object and a number of objects must contain a precise indication of this object or objects, as well a description of this object or objects.In respect of the evaluation of objects possessed by the Russian Federation, the constituent entities of the Russian Federation or municipal formations, the contract of evaluation shall be made on behalf of the client by the person authorized by the owner to conclude transactions with the objects, if not otherwise established by the legislation of the Russian Federation.

Article 11. General Requirements on the Subject Matter of the Report on the Appraisal of an Object Undergoing EvaluationThe Report on Appraisal of the Object Undergoing Evaluation (hereinafter referred to as the Report) must not be ambiguous or misleading. It must obligatorily indicate the date when the object undergoing evaluation was appraised, the evaluation standards used, the purposes and tasks of

appraising the object undergoing evaluation, and also furnish other data needed for a full and unambiguous interpretation of the results (shown in the Report) obtained in appraising the object undergoing evaluation.Where a value other than the market value is determined in appraising an object undergoing evaluation, the Report must indicate the criteria for establishing the value of the object and the reasons for not determining its market value.The Report must indicate the following:the date when the Report was drawn up and its index number;the grounds for the valuer to conduct an appraisal of the object undergoing evaluation;the valuer's location and details on the valuer's membership in a self-regulated organisation of valuers;a precise description of the object undergoing evaluation, and where the object belongs to a legal entity, the particulars of the legal entity and the book value of the object undergoing evaluation in question;the valuation standards for determining the relevant type of value of the object undergoing evaluation; the reasons for using these standards in appraising the object in question; a list of data used in appraising the object in question, indicating their sources, and also the assumptions used in appraising the said object;the sequence in determining the value of the object undergoing evaluation and the final value arrived at, and also the restrictions and limits in applying the result obtained;the date when the value of the object undergoing evaluation was determined;a list of the documents used by the valuer to establish the quantitative and qualitative characteristics of the object undergoing evaluation.The Report may contain other data which, in the valuer's opinion, are essential to a full reflection of the method he has used to calculate the value of the particular object undergoing evaluation.Russian Federal legislation may prescribe special forms of Reports concerning the appraisal of certain specific types of objects.The Report has to be numbered page by page, bound and signed by the valuer or valuers who has (have) carried out the evaluation, and the personal stamp of the valuer or the stamp of the legal entity, with which the valuer has made a labour contract, has to be affixed thereto.

See Federal Standard of Appraisal No. 3 Requirements for the Report on Appraisal (FSG No. 3) approved by Order of the Ministry of Economic Development No. 254 of July 20, 2007

Article 12. Trustworthiness of the Report As a Document Containing Information of Evidential SignificanceThe final market or other value of the object undergoing evaluation shown in the Report, drawn up on the grounds and in accordance with the procedure prescribed by the present Federal Law, shall be held to be trustworthy, and may be recommended for the purpose of making a transaction with the object, unless otherwise established by Russian Federal legislation and judicial practice.

Article 13. Voidability of the Data Contained in the ReportWhere a dispute arises over the trustworthiness of the market or other value of the object subject to evaluation as shown in the Report, owing, among other things, to the presence of another Report on the appraisal of the same object, the dispute shall be subject to a hearing by a law or arbitration court in accordance with its jurisdiction, by an arbitration tribunal if the parties to the dispute or to the Contract agree, or in accordance with the procedure prescribed by the Russian Federal legislation that regulates evaluation activity.The law or arbitration court, or the arbitration tribunal, shall have the right to obligate the parties to transact a deal at the price set during the hearing of the dispute at the court session only where it is obligatory to transact the deal in accordance with Russian Federal legislation.

See Informational Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 92 of May 30, 2005 on the Consideration by Arbitration Courts of Cases Concerning the Contesting of the Evaluation of Property Made by an Independent Appraiser

Article 14. Rights of the ValuerThe valuer shall have the right to:autonomously apply the methods of appraising objects undergoing evaluation in accordance with valuation standards;

require the client, when conducting an obligatory appraisal of the object undergoing evaluation, to provide full access to the documents needed for conducting the appraisal;obtain any explanations and additional information needed for conducting the evaluation in question;request from third parties, in writing or orally, any information needed for appraising the object undergoing evaluation, but not information which constitutes a state or commercial secret; if rejection of the request for the said information significantly affects the trustworthiness of the appraisal of the object undergoing evaluation, the valuer shall indicate this in his Report;invite other valuers or specialists, where necessary, to participate on a contractual basis in appraising the object undergoing evaluation;decline to appraise the object when the client has violated the terms of the contract, failed to provide the necessary information about the object undergoing evaluation, or failed to provide the work conditions stipulated by the contract;to demand the reimbursement of expenses connected with the appraisal of an object undergoing evaluation and a pecuniary award for appraisal of the object undergoing evaluation on the basis of the ruling of a court, arbitration court or arbitration tribunal.

Article 15. Duties of the ValuerThe valuer shall be obligated:to be a member of a self-regulated organisation;to observe, when conducting evaluation activity, the requirements of the present Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, as well as the standards of, and rules for, evaluation activity endorsed by the self-regulated organisation of which he is a member;to follow the business and professional ethical rules established by the self-regulated organisation of valuers (hereinafter referred to as business and professional ethical rules ) of which he is a member, as well as to pay the membership fees established by such self regulated organsaition of valuers;notify the client or the legal entity, which he has made a labour contact with, that he is unable to participate in evaluation where circumstances have arisen which hamper the conduct of the evaluation in an unbiased way;guarantee the safekeeping of the documents received from the client and third parties in the course of evaluation;to provide the client with information on his membership in a self-regulated organsation of valuers;to provide the self-regulated organisation of valuers with information about the legal entity, which he has made a labour contract with, including information about the compliance of such legal entity with the terms established by Article 15.1 of this Federal Law, as well as data on any changes in this information;to present, at the request of a client, the insurance policy and the education certificate proving his professional training in evaluation activity;not to divulge the information that has been received by him from the client in the course of evaluation, except for the instances provided for by the legislation of the Russian Federation;in the cases, provided for by the legislation of the Russian Federation, to issue copies of the reports kept in custody and the information contained therein to law enforcement, judicial and other authorized state bodies upon the request thereof;to present on demand of a client an extract from the register of members of the self-regulated organisation of valuers of which he is a member.

Article 15.1. Duties of the Legal Entity, with Which the Valuer Has Made a Labour ContractA legal entity which intends to make a contract of evaluation with a client shall be obliged:to have on the staff at least two persons complying with the requirements of Part Two of Article 24 of this Federal Law;to ensure the safekeeping of the documents received from clients and third parties in the course of evaluation;to notify a client of the impossibility of its participation in evaluation as a result of circumstances impeding the conduct of an unbiased evaluation;to present at the request of a client the contract of obligatory insurance of the valuer's liability made in compliance with Article 24.7 of this Federal Law;not to divulge the confidential information received from a client in the course of evaluation, except in the cases provided for by the legislation of the Russian Federation;to provide to the self-regulated organsiation of valuers, of which the valuer is a member, for the

exercise of control over his evaluation activity access to the documents and materials serving as a basis for the evaluation, except for information constituting a commercial secret of the legal entity or a client, as well as other confidential information;in the cases provided for by the legislation of the Russian Federation to present copies of the reports kept in custody or the information contained therein to law enforcement, judicial and other authorized bodies upon the request thereof.

Article 16. Independence of the ValuerAppraisal of an object undergoing evaluation may not be effected by a valuer, if he is the founder, shareholder, official or employee of the legal entity being the client, a person who has a property interest in the object of valuation or is a close relative or relative by marriage of the said persons.Appraisal of an object of evaluation shall not be permitted where:the valuer has proprietary or liability rights outside the Contract with respect to the object undergoing evaluation;the valuer is a participant (member) or creditor of the legal entity being the client or such legal entity is a creditor or insurer of the valuer.The client or other interested parties shall not be permitted to interfere in the valuer's activity if this can have a negative effect on the trustworthiness of the result obtained in appraising the object undergoing evaluation; i.e., if, among other things, such interference limits the range of matters to be clarified or determined when appraising the object undergoing evaluation.The amount of payment due to the valuer for appraising the object undergoing evaluation shall not depend on the ultimate value of the object.

Article 16.1. Abolished.See the text of Article 16.1

Article 17. Abolished.See the text of Article 17

Chapter III. Regulation of Evaluation Activity

Article 18. Regulation of Evaluation Activity and Activity of Self-Regulated Organisations of ValuersThe state regulation of evaluation activity and the activity of self-regulated organisations of valuers, as regards supervision and normative and legal regulation, shall be effected by the federal executive bodies authorized by the Government of the Russian Federation (hereinafter referred to as the authorized federal bodies).Evaluation activity shall be regulated by the National Council for Evaluation Activity (hereinafter referred to as the National Council), as regards the development of federal evaluation standards, and by self-regulated organisations of valuers, as regards the development and endorsement of standards and rules for evaluation activity. Control over the exercise by members of a self-regulated organsaition of evaluation activity shall be exerted by these organsiations.

Federal Law No. 129-FZ of July 13, 2007 amended Article 19 of this Federal LawSee the Article in the previous wording

Article 19. Functions of the Authorized Federal BodiesThe functions of the authorized federal bodies shall be as follows:to develop state policy in the field of evaluation activity;to effect normative and legal regulation in the field of evaluation activity and to endorse federal evaluation standards;To maintain the unified state register of self-regulated organsiations of valuers;To exercise supervision over the compliance of self-regulated organisations of valuers with the requirements of this Federal Law;to file in court an application for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisation of valuers.

Article 20. Standards of Evaluation ActivityStandards of evaluation activity shall be determined by the requirements for the procedure for conducting evaluations and exercising evaluation activity.Standards of evaluation activity shall be subdivided into the federal evaluation standards and the

standards and rules for evaluation activity.The federal evaluation standards shall be developed by the National Council subject to international evaluation standards.The developed federal evaluation standards shall be sent by the National Council for approval to the authorized federal body exercising the functions of normative and legal regulation of evaluation activity. The authorised federal body exercising the functions of normative and legal regulation of evaluation activity shall be obliged, at the latest in sixty working days as of the date of receiving the federal evaluation standards, to endorse them or to issue a reasoned refusal to do so in writing.The authorized federal body exercising the functions of normative and legal regulation of evaluation activity shall be entitled to deny endorsement of the federal evaluation standards in the event of their noncompliance with the requirements of the Constitution of the Russian Federation, international treaties made by the Russian Federation or this Federal Law.The endorsed federal evaluation standards shall be subject to publication by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity in the procedure established by the Government of the Russian Federation and shall be placed on the official Internet site of the federal executive body exercising the functions of normative and legal regulation of evaluation activity.The standards and rules for evaluation activity shall be developed and endorsed by a self-regulated organisation of valuers and may not contradict the federal evaluation standards.

Article 21. Professional Training of ValuersThe professional training of valuers shall be conducted by higher educational establishments, both state and private, expressly set up for this purpose, or at the faculties (departments, subfaculties) of higher educational establishments, both state and private, which have the right to conduct such training in accordance with Russian Federation legislation.

Article 22. Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be a non-profit orgnisation established for the purpose of regulation of, and control over, evaluation activity which is included into the unified state register of self-regulated organisations and unites valuers under the conditions of membership therein.The status of a non-profit organisation of valuers shall be acquired by a non-profit organisation in compliance with the regulations of this Article as of the date of its inclsion into the unified state register of self-regulated organisations of valuers. As grounds for the inclusion of a non-profit organisation into the unified state register of self-regulated organisations of valuers shall be deemed the compliance thereof with the following requirements:such organisation's unifying as its members at least 300 natural persons complying with the requirements established by Part Two of Article 24 of this Federal Law;existence of a compensation fund formed by monetary membership dues in the amount established by Part Three of Article 24.6 of this Federal Law;presence of a collective managerial body (council, supervisory board), of functionally specialized bodies and structural subdivisions;presence of standards and rules for evaluation activity endorsed in compliance with the requirements of this Federal Law.Employees of a self-regulated organisation of valuers shall not be entitled to exercise evaluation activity.A self-regulated organsition of valuers shall be obliged to take measures in due time aimed at preventing a conflict of interests between the self-regulated organsation of valuers and members thereof, as well as at the timely settlement of such conflicts.A non-profit organisation with the status of a self-regulated orgainsation of valuers shall be liquidated in compliance with the legislation on non-profit organisations. A representative of the National Council must be included into the liquidation commission of a non-profit organisation that has the status of a self-regulated organisation of valuers.A non-profit organisation with the status of a self-regulated organisation of valuers may not be re-organised.

As to the self-regulating organisations, see Federal Law No. 315-FZ of December 1, 2007

Article 22.1. Functions of Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall exercise the following functions:development and endorsement of standards and rules for evaluation activity, business and

professional ethical rules;development and endorsement of the rules for, and terms of, admission to the self-regulated organisation of valuers, additional requirements for ensuring the property liability of its members when exercising evaluation activity, establishment of the rate of membership dues and of the procedure for paying them;representation of its members' interests in their relations with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, as well as with international professional organisations of valuers;admission and expulsion from a self-regulated organisation of valuers for the reasons provided for by this Federal Law and internal documents of the self-regulated organisation of valuers;control over exercise of evaluation activity by its members, as regards their compliance with the requirements of this Federal law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;keeping the register of members of the self-regulated organisation of valuers and providing the information contained in this register to the persons concerned in the procedure established by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;arranging informational and methodological support for its members;exercise of other functions established by this Federal Law.

Article 22.2. Basic Rights and Duties of a Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be entitled:to represent the interests of its members in their relations with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, as well as with international professional organisations of valuers;to dispute judicially acts of federal executive bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies and actions (the failure to act) of these bodies breaching the rights and legitimate interests of all its members or of a part thereof.A self-regulated organisation shall be obliged:to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation;to form a compensation fund to ensure the meeting of the liability of its members to consumers of services in the field of evaluation activity and third persons;to exercise control over compliance of its members with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;to apply disciplinary sanctions, provided for by this Federal Law and internal documents of the self-regulated organisation of valuers, in respect of its members;to notify the authorized federal body, exercising the functions of supervision over the activities of self-regulated organisations of valuers, of the instances of its non-compliance with the requirements provided for by Part Three of Article 22 of this Federal Law within ten days as of the time of discovering such non-compliance;to deny admission to the self-regulated organisation of valuers for the reasons provided for by this Federal Law and internal documents of the self-regulated organisation of valuers, for failures to meet the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;to keep the register of members of the self-regulated organisation of valuers and to provide the information contained in this register to persons concerned in the procedure established by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;to organise professional re-training of valuers.

Article 22.3. Disclosure of Information by a Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be obliged to place the following on the official Internet site of the self-regulated organisation of valuers:the constituent documents;standards and rules for evaluation activity, as well as business and professional ethical rules;regulations on the collective managerial body of the self-regulated organisation of valuers, on the

structural subdivision thereof exercising control over evaluation activity of members of the self-regulated organisation of valuers, on the body in charge of considering cases concerning the application of disciplinary sanctions in respect of members of this organisation (hereinafter referred to as the disciplinary committee), on other bodies and structural subdivisions, as well as information about the facts of imposing disciplinary penalties, if any);list of the members of the self-regulated organisation of valuers whose membership therein has been terminated, including the persons who have been expelled from the self-regulated organisation of valuers for failing to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, business and professional ethical rules in the last three years of activity of the self-regulated organisation of valuers;information on non-compliance of the self-regulated organisation of valuers with the requirements established by Part Three of Article 22 of this Federal Law (including information about the date of emergence of the non-compliance of the self-regulated organisation of valuers with the said requirements, about measures taken and (or) planned by the self-regulated organisation of valuers for elimination of such non-compliance);rules for, and terms of, admission to the self-regulated organisation of valuers, rate of membership dues and procedure for paying them, additional requirements of the procedure for guaranteeing the property liability of its members for the exercise of evaluation activity;information about the members' reports. Information content and time periods of placement of this information shall be governed by internal documents of the self-regulated organisation of valuers in accordance with the second paragraph of part three of this Article; information about the compensation fund thereof, including information about assessment of the compensation fund in monetary terms, about the investment declaration of the compensation fund and facts of levying execution against the compensation fund;information about the management company with which a contract of trust management for the compensation fund has been made (including information about its name, location, licence, as well as contact information);information about the specialized depository with which a depository contract has been made (including information about its name, location, licence and contact information);information about contracts of obligatory insurance of liability of members of the self-regulated organisation of valuers and information about the insurers with which such contracts have been made (including information about their denomination, location, licences and contact information);information about acquisition by officials, or employees of the self-regulated organisation of valuers, or by affiliated persons thereof, of securities whose issuers or debtors in respect of which are legal entities with which members of the self-regulated organisation have concluded labour contracts;Information about the results of inspections of the activities of members of the self-regulated organisation of valuers;Information about the emergence of a conflict of interests between the self-regulated organisation of valuers and members thereof.A self-regulated organsaition of valuers shall be obliged to place at the official Internet site of the self-regulated organisation of valuers all amendments made to the documents, or changes in the information, specified by Part One of this Article at the latest on the day following the date when such changes were adopted, took place or became known to the self-regulated organisation of valuers.A self-regulated organisation of valuers shall be obliged to devise and endorse regulations on disclosing the establishing the following:the procedure for submitting reports to the self-regulated organisation of valuers by members thereof and the scope of such reports;the scope of information about reports of members of the self-regulated organisation of valuers to be published;the procedure for supplying the information contained in the register of members of the self-regulated organisation of valuers at the demand of citizens and legal entities;other requirements which do not contradict this Article.

Federal Law No. 129-FZ of July 13, 2007 amended Article 23 of this Federal LawSee the Article in the previous wording

Article 23. Procedure for Including a Non-Profit Organisation into the Unified State Register of Self-Regulated Organisations of Valuers

A non-profit organisation complying with the requirements of Part Three of Article 22 of this Federal Law shall be entitled to file an application with the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers for inclusion in the unified state register of self-regulated organisations of valuers.The authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall decide on the inclusion of, or on the refusal to include, a non-profit organisation into the unified state register of self-regulated organisation valuers within seven days of the date of the submission of the following documents by this non-profit organisation:an application for inclusion into the unified state register of self-regulated organisations of valuers;copies of the constituent documents attested and certified by a notary public;a copy of the certificate of the non-profit organisation's registration with a tax authority attested and certified by a notary public;copies, attested by a nonprofit organisation, of documents on education confirming the obtaining by its members of professional knowledge in the field of the evaluation activity in accordance with the educational programmes of the higher professional education, additional professional education or the programmes of the professional retraining of specialists in the field of the evaluation activity;copies of regulations on the collective managerial body, on the structural subdivision exercising control over evaluation activity of members of such organisation and on the disciplinary committee attested by the non-profit organisation;copies of the standards and rules for evaluation activities attested by the non-profit organisation;copies of the certificates attested by the non-profit organisation proving that members thereof do not have previous un-cancelled convictions for economic crimes, as well as for crimes of medium gravity, grave and especially grave crimes;copies of the documents attested by the non-profit organisation proving the establishment of the compensation fund in the amount set by this Federal Law;copies of applications of its members for joining this organisation attested by it;a copy of the register of the non-profit organisation's members attested by it.A decision of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers on the inclusion of, or on the refusal to include, a non-profit organisation in the unified state register of self-regulated organisations of valuers shall be sent in writing to this non-profit organisation within seven days as of the date of adopting the appropriate decision.A decision of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers, or on the refusal to include a non-profit organisation into the unified state register of self-regulated organisations may be taken for the following reasons:the non-profit organisation does not comply with any of the requirements provided for by Part Three of Article 22 of this Federal Law;the non-profit organisation has not presented the documents provided for by Part Two of this Article or has presented documents containing unreliable information.A decision on the refusal to include a non-profit organisation into the unified state register of self-regulated organisations of valuers may be appealed against by this non-profit organisation in an arbitration court.A self-regulated organisation of valuers shall be removed from the unified state register of self-regulated organisations of valuers by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers, if this organisation has filed an application for removal thereof from the said register or in the event of liquidation of a non-profit organisation with the status of a self regulated organisation of valuers.In other cases, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file an application with an arbitration court for removing a self-regulated organisation of valuers from the unified state register of self-regulated organsations of valuers. The following shall be deemed grounds for applying to an arbitration court:non-compliance of the self-regulated organisation of valuers with one of the requirements provided for by Part Three of Article 22 of this Federal Law detected on the basis of the results of an inspection;failure of the self-regulated organisation of valuers to comply with the demand to eliminate in due time the violations detected by the authorised federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers and stated in the order thereof.

Federal Law No. 129-FZ of July 13, 2007 amended Article 24 of this Federal LawSee the Article in the previous wording

Article 24. Requirements for Membership in a Self-Regulated Organisation of ValuersA valuer anyone may only be a member of one self-regulated organisation of valuers complying with the requirements of this Federal Law.To join a self-regulated organisation of valuers a natural person shall submit the following:document on education confirming the obtaining of professional knowledge in the field of the evaluation activity in accordance with the educational programmes of the higher professional education, additional professional education or the programmes of the professional retraining of specialists in the field of the evaluation activity;certificate proving the absence of un-cancelled previous convictions for economic crimes, as well as for crimes of medium gravity, grave and especially grave crimes.A self-regulated organisation of valuers, when admitting natural persons thereto, shall be entitled to raise other requirements connected with the exercise of evaluation activity by a valuer and not contravening this Federal Law and other federal laws.The collective managerial body of a self-regulated organisation of valuers shall decide on the compliance of a person with the requirements established by Parts Two and Three of this Article within seven days as of the day of receiving the application and required documents from such person.A person in respect of whom a decision has been rendered on his compliance with the requirements established by Parts Two and Three of this Article shall be deemed admitted to a self-regulated organisation of valuers, and data on such person shall be entered to the register of members of the self-regulated organsation of valuers within three days as of the date of such person presenting a contract of obligatory insurance of his liability complying with the requirements established by Article 24.7 of this Federal Law and paying the membership dues established by the self-regulated organisation of valuers. Such person shall be issued a document proving his membership in a self-regulated organisation of valuers within ten days as of the date of entering data on him in the register of members of the self-regulated organisation of valuers.The following shall be deemed as reasons for refusing to admit a person to a self-regulated organisation of valuers:non-compliance of the person with the requirements of this Article;non-compliance of the person with the requirements endorsed by the self-regulated organisation of valuers for admission to the self-regulated organisation of valuers;expulsion of the person from other self-regulated organisation of valuers for failing to comply with the requirements of this Federal Law and the normative legal acts of the Russian Federation and federal evaluation standards adopted in compliance with it, if less than three years have passed since the date of expulsion from the self-regulated organisation of valuers.A person who has been denied admission to a self-regulated organisation of valuers shall be entitled to appeal against such denial in an arbitration court.A valuer's membership in a self-regulated organisation of valuers shall be terminated by the collective managerial body of a self-regulated organisation of valuers on the basis of the following:the valuer's application for leaving the self-regulated organisation of valuers;endorsement by the collective managerial body of the self-regulated organisation of valuers of the decision to expel the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.A person in respect of whom it has been decided to terminate his membership in a self-regulated organisation of valuers shall be obliged to notify the customer under a contract of evaluation or the legal entity with which he has made a labour contract of the fact of termination of his membership in the self-regulated organisation of valuers and of the impossibility of signing an evaluation report.A self-regulated organisation of valuers at the latest on the day following the date of the collective managerial body of the self-regulated organisation of valuers adopting a decision to terminate the membership of a valuer in the self-regulated organisation of valuers shall be obliged to place such decision on the official Internet site of the self-regulated organisation of valuers, as well as to send copies of such decision:to the person in respect of whom it is decided to terminate his membership in the self-regulated organisation of valuers;to the legal entity with which the person has made a labour contract, if information about the labour contract made has been previously supplied to the self-regulated organisation of valuers;to all self-regulated organisations entered to the unified state register of self-regulated

organisations of valuers in the event of the collective managerial body of the self-regulated organisation of valuers endorsing the decision on the expulsion of the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, as well as with federal evaluation standards;to the National Council in the event of endorsing by the collective managerial body of the self-regulated organisation of valuers the decision to expel the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.

Article 24.1. The Maintaining by a Self-Regulated Organisation of Valuers of the Register of Members of the Self-Regulated Organisation of ValuersThe composition of the data to be included into the register of members of a self-regulated organisation of valuers in compliance with the requirements of this Federal Law and the procedure for keeping this register by the self-regulated organisation of valuers and for placing the information contained in the register in information systems of general use shall be endorsed by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity.On the basis of the provisions of this Federal Law the information contained in the register of members of a self-regulated organisation of valuers shall be provided on demand of citizens and legal entities in the procedure determined by the internal documents of the self-regulated organisation. The time period for providing such information may not exceed seven days as of the day of receiving the appropriate demand.

Federal Law No. 220-FZ of July 24, 2007 amended Article 24.2 of this Federal LawSee the Article in the previous wording

Article 24.2. Bodies of a Self-Regulated Organisation of ValuersA procedure for the formation, structure, scope and term of authority of bodies of a self-regulated organisation of valuers, as well as a procedure for decision-making by such bodies shall be established by internal documents of the self-regulated organisation of valuers in compliance with this Federal Law and other federal laws.A general meeting of members of a self-regulated organisation of valuers shall be the supreme managerial body of the self-regulated organisation of valuers in charge of the matters referred to the scope of authority thereof by this Federal Law and other federal laws.A general meeting of members of a self-regulated organisation of valuers shall be called at least once a year in the procedure established by the charter thereof.The settlement of the following issues shall pertain to the scope of exclusive authority of a general meeting of members of a self-regulated organisation of valuers:endorsement of the regulations on the collective managerial body of the self-regulated organisation of valuers, formation of the collective managerial body of the self-regulated organisation of valuers, adoption of decisions on early termination of the authority of the collective managerial body of the self-regulated organisation of valuers or on early termination of authority of its members;endorsement of the regulations of the self-regulated organisation of valuers on disclosure of information;endorsement of the regulations on the disciplinary committee, establishment of the disciplinary committee, adoption of decisions on early termination of its authority or on early termination of the authority of its members;endorsement in the procedure and with the periodicity established by the charter, of reports of the collective managerial body of the self-regulated organisation of valuers and of the executive body thereof on the results of financial and economic, as well as of organisational activity, of the self-regulated organisation of valuers;endorsement of the regulations on membership in the self-regulated organisation of valuers;adoption of decisions on voluntary liquidation of a non-profit organisation and on appointing the liquidator or the liquidation committee.The procedure for holding general meetings of members of a self-regulated organisation of valuers, the procedure for compiling the agenda of the meetings and determining the quorum, terms of, and procedure for, voting shall be determined by a self-regulated organisation of valuers independently in its charter.

The collective managerial body of a self-regulated organisation of valuers shall include at least seven persons. The following shall pertain to the exclusive authority of a self-regulated organisation of valuers:endorsement of the standards and rules for evaluation activity, as well as of business and professional ethical rules;admission of valuers to the self-regulated organisation of valuers and termination of their membership in the self-regulated organisation of valuers;establishment of the committees provided for by internal documents of the self-regulated organisation of valuers, adoption of decisions on early termination of the authority of such committees or on early termination of the authority of their members, endorsement of regulations on the structural subdivision exercising control over the evaluation activity of members of the self-regulated organisation of valuers and on other committees;endorsement of the investment declaration of the compensation fund;endorsement of regulations on the procedure for exercising control over the evaluation activity of members of the self-regulated organisation of valuers;other matters referred by the charter to the exclusive authority of the collective managerial body of the self-regulated organisation of valuers.Persons who are not members of a self-regulated organisation of valuers and (or) affiliated persons thereof may constitute at most 25 per cent of members of the collective managerial body of the self-regulated organisation of valuers.Members of the collective managerial body of a self-regulated organisation of valuers may not be elected to the disciplinary committee thereof.The person exercising the functions of the personal executive body of a self-regulated organisation of valuers and the persons included in the collective executive body of a self-regulated organisation of valuers shall not be entitled:to establish legal entities or be members of managerial bodies of legal entities engaged in evaluation activity, of their branches and dependent companies;to make labour contracts with the legal entities which have made labour contracts with members of the self-regulated organisation of valuers, as well as with the branches and dependent companies thereof;to make civil law contracts, including contracts of rendering payable services, under which the customer is a member of the self-regulated organisation of valuers.To ensure its activity, a self-regulated organisation of valuers shall establish the following:a structural subdivision exercising control over the evaluation activity of members of the self-regulated organisation of valuers;disciplinary committee and council of experts;other bodies and structural subdivisions determined by internal documents of the self-regulated organisation of valuers.The council of experts of a self-regulating organisation of evaluators shall carry out an expert examination of reports on the evaluation of securities and also an expert examination of other types of reports of evaluators in accordance with the legislation of the Russian Federation.The approval of the regulations on the council of experts of a self-regulating organisation of evaluators, the formation of the council of experts, the adoption of decisions on the early termination of its authority or of the authority of its members, shall be the exclusive competence of a general meeting of members of the self-regulating organisation of evaluators.The council of experts of a self-regulating organisation of evaluators shall be formed mainly from among the members of the self-regulating organisation in a number of at least seven persons.".

Article 24.3. Procedure for Exercising Control over Evaluation Activity by a Self-Regulated Organisation of ValuersControl over evaluation activity of members of a self-regulated organisation of valuers shall be exercised by the appropriate structural subdivision thereof consisting of employees of the self-regulated organisation of valuers by way of holding planned and extraordinary inspections.A planned inspection shall be held to ensure the compliance of members of a self-regulated organisation of valuers with the requirements of this Federal Law, other federal laws and other normative acts of the Russian Federation, federal evaluation standards, standards and rules of evaluation activity, as well as business and professional ethical rules, additional requirements for the procedure for ensuring the property liability of valuers when exercising evaluation activity. The duration of a planned inspection may not exceed thirty days.A planned inspection shall be held at least once every three years and at most once a year.

An extraordinary inspection may be conducted by a self-regulated organisation of valuers on the grounds of a reasoned complaint sent to the self-regulated organisation of valuers about a valuer's failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.Internal documents of a self-regulated organisation of valuers may provide for other grounds for conducting an extraordinary inspection.In the course of an extraordinary inspection solely the facts indicated in a complaint or the facts to be inspected for other reasons shall be subject to examination.A valuer shall be obliged to provide the information required for holding an inspection on demand of the self-regulated organisation of valuers in the procedure determined by internal documents of the self-regulated organisation of valuers.In the event of detecting any violations, the materials showing the results of the inspection shall be passed over to the disciplinary committee.A self-regulated organisation of valuers, as well as its employees and officials participating in an inspection, shall be held responsible in respect of non-divulgence and non-dissemination of the data obtained in the course of the inspection in compliance with this Federal Law and other federal laws.

Article 24.4. Procedure for Imposing Disciplinary Penalties on Members of a Self-Regulated Organisation of ValuersThe disciplinary committee shall be obliged to consider actions of members of the self-regulated organisation of valuers and cases of its members' failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules, requirements for paying obligatory fees to the self-regulated organisation of valuers and additional requirements of the procedure for ensuring property liability of valuers when exercising evaluation activity.The procedure for considering said complaints and cases, as well as the contents of said violations, shall be determined by internal documents of a self-regulated organisation of valuers.When considering complaints against actions of members of a self-regulated organisation of valuers, the disciplinary committee shall be obliged to invite to its sittings the persons who have sent such complaints, as well as the members of the self-regulated organisation of valuers in respect of whom cases on imposing disciplinary penalties are being considered.The disciplinary committee shall be entitled to decide on imposing the following disciplinary penalties:issuance of orders obliging a member of the self-regulated organisation of valuers to eliminate detected violations and establishing the time for elimination of such violations;issuance of a warning to a member of the self-regulated organisation of valuers;imposition of a fine upon a member of the self-regulated organisation of valuers in the amount established by internal documents of the self-regulated organisation of valuers;recommendation to expel a valuer from the self-regulated organisation of valuers to be considered and endorsed by the collective managerial body of the self-regulated organisation of valuers;other measures established by internal documents of the self-regulated organisation of valuers.The decisions provided for by Paragraphs from Two to Four and Six of Part Four of this Article shall enter into force as of the time of their adoption by the disciplinary committee. The decision provided for by Paragraph Five of Part Four of this Article may be adopted by at least 75 per cent of votes of members of the disciplinary committee attending its sitting and shall enter into force as of the time of its endorsement by the collective managerial body of the self-regulated organisation of valuers.A self-regulated organisation of valuers, within two working days as of the date of the disciplinary committee adopting the decision to impose a disciplinary penalty upon a member of the self-regulated organisation of valuers shall send copies of such decision to the member of the self-regulated organisation of valuers and to the person who has filed the complaint in respect of which such decision has been adopted.Decisions of the disciplinary committee may be appealed against by members of a self-regulated organisation of valuers with the collective managerial body of the self-regulated organisation of valuers at the time established by the self-regulated organisation of valuers.The decision of the collective managerial body of a self-regulated organisation of valuers on the endorsement of the recommendation of the disciplinary committee to expel a person from the self-regulated organisation of valuers may be appealed against by the persons expelled from the self-regulated organisation of valuers with an arbitration court within three months as of the date of

rendering such decision.The monetary funds received by a self-regulated organisation of valuers as a result of imposition of a fine upon a member of the self-regulated organisation of valuers in compliance with this Article shall be entered into the compensation fund of the self-regulated organisation of valuers.

Article 24.5. Supervision over the Activities of Self-Regulated Organisations of ValuersSupervision over the activities of self-regulated organisations of valuers shall be exercised by holding planned and extraordinary inspections by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers.A planned inspection of the activity of a self-regulated organisation of valuers shall be conducted once every two years in compliance with the plan approved by the federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers.The decision to hold an extraordinary inspection of the activities of a self-regulated organisation of valuers shall be rendered by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers on the basis of applications of legal entities, natural persons, federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, law-enforcement agencies in respect of violations by the self-regulated organisation of valuers or by members thereof of this Federal Law, other federal laws and other normative legal acts of the Russian Federation.In the course of an inspection of the activities of a self-regulated organisation of valuers the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall be entitled to request from the specialized depository that has made a depository agreement with the self-regulated organisation of valuers information about the assessment of its compensation fund in monetary terms.The authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall notify the self-regulated organisation of valuers in writing of its decision adopted on the basis of the materials based on the results of an inspection at the latest in three days as of the date of adopting such decision.In the event of detecting failures to comply with the requirements established by Part Three of Article 22 of this Federal Law, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file an application with an arbitration court for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.In the event of detecting other violations, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall send an order to eliminate the detected violations within a reasonable time to the self-regulated organisation of valuers.An order of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers to eliminate detected violations may be appealed against by a self-regulated organisation of valuers in an arbitration court.In the event of failure to follow in the established time an order to eliminate detected violations, the authorised federal body exercising the functions of supervision over the activities of self-regulated organisation of valuers shall file with an arbitration court an application for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.A self-regulated organisation of valuers that has detected its noncompliance with the requirements of Part Three of Article 22 of this Federal Law shall be entitled to file an application in writing with the authorized federal body exercising the functions of supervision over the activities of self-regulated organisation of valuers in respect of the detected non-compliance with a description thereof, indication of the date of its emergence and of the measures aimed at elimination of it which are being taken and (or) planned.Within two months after receipt by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers of an application concerning a detected noncompliance, a self-regulated organisation of valuers may not be excluded from the unified state register of self-regulated organisations of valuers for the reason specified in the application. If upon the expiry of the said time period the self-regulated organisation of valuers does not submit to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers proof of elimination of the detected non-compliance, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file with an arbitration court an application for exclusion of the self-

regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.A self-regulated organisation of valuers shall be deemed excluded from the unified state register of self-regulated organisations as of the date of entry into force of an arbitration court's decision on exlusion thereof from said register.Valuers who are members of a self-regulated organisation of valuers excluded from the unified state register of self-regulated organisations of valuers shall be entitled to join other self-regulated organisations of valuers.Within three months as of the date of excluding a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers the valuers who are members thereof that have not entered other self-regulated organsations of valuers shall be only entitled to exercise evaluation activity under the contracts made prior to the date of excluding the self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.

Article 24.6. Ensuring Property Liability When Exercising Evaluation ActivityThe losses caused to a client that has made a contract of evaluation or the property damage caused to third persons as a result of using the total value of the market or other cost of an object of evaluation indicated in the report signed by a valuer or valuers shall be subject to compensation in full at the expense of the property of the valuer or valuers who have caused by their actions (failure to act) the losses or property damage when exercising evaluation activity or at the expense of the property of the legal entity with which the valuer has made a labour contract.The legal entity with which a valuer has made a labour contract may state in a contract of evaluation the terms under which it assumes obligations in respect of additional warranty of the valuer's obligation to compensate for the damages caused to the client that has made the contract of evaluation or for the property damage caused to third persons.For the purpose of ensuring the property liability of members of a self-regulated organisation of valuers towards a client and (or) third persons that have made a contract of evaluation, the self-regulated organisation of valuers shall be obliged to demand of members thereof the use of the following methods of ensuring such liability:making the contract of obligatory insurance of the liability of a valuer provided for by Article 24.7 of this Federal Law, when exercising evaluation activity, under which the insured amount may not be less that three hundred thousand roubles;formation of the compensation fund of the self-regulated organisation of valuers to which each member of the self-regulated organisation of valuers has to make an obligatory contribution in the amount of at least thirty thousand roubles.

Article 24.7. Contract of Obligatory Insurance of Valuer's Liability When Exercising Evaluation ActivityThe object of insurance under a contract of obligatory insurance of valuer's liability when exercising evaluation activity (hereinafter referred to as a contract of obligatory insurance of liability) shall be the property interests connected with the risk of liability of a valuer (insurant) under the obligations which result from causing damage to the client that has made a contract of evaluation and (or) to third persons.As a contingency under a contract of obligatory insurance of liability shall be deemed the fact of causing damage by actions (failure to act) of a valuer established by an effective decision of an arbitration court or recognized by the insurer resulting from the valuer's failure to comply with the requirements of federal evaluation standards, standards and rules for evaluation activity established by the self-regulated organisation of valuers of which the valuer is a member at the time of causing damage.In the event of a contingency, the insurer shall make an insurance payment in the amount of the real damage caused to a client and (or) a third person which is established by an effective decision of an arbitration court but at most in the amount of the insured amount under the contract of obligatory insurance of liability.A contract of obligatory insurance of liability shall be made for a term of at least one year under the condition of compensation for the damage caused within the term of validity of the contract of obligatory insurance of liability subject to the limitation period established by the legislation of the Russian Federation.The insurance premium under a contract of obligatory insurance of liability may be determined by insurers depending on a valuer's record of evaluation activity, number of previous contingencies and other circumstances influencing the degree of the risk of causing damage.

A contract of obligatory insurance of liability may provide for a valuer's payment of the insurance premium by installments and the time for paying insurance fees.The date of paying the insurance premium (insurance fee) shall be deemed the date of paying the insurance premium (insurance fee) in cash to the insurer or the date of remitting the insurance premium (insurance fee) to the insurer's settlement account.A contract of obligatory insurance of liability shall enter into force as of the time of an insurant's payment of the first insurance fee, if not otherwise provided for by the legislation of the Russian Federation.Control over obligatory insurance by its members of their liability shall be exercised by a self-regulated organisation of valuers that shall be entitled to establish additional requirements in keeping with the legislation of the Russian Federation for the contracts of obligatory insurance of liability made by members of such self-regulated organisation of valuers.

Article 24.8. The Compensation Fund of a Self-Regulated Organisation of ValuersAs the compensation fund of a self-regulated organisation of valuers (hereinafter referred to as the compensation fund) shall be deemed a separate property which is under the ownership of the self-regulated organisation of valuers and which shall be initially formed using solely monetary funds at the expense of obligatory membership dues.It shall not be allowable to relieve a member of a self-regulated organisation of valuers of the duty to pay fees to the compensation fund, in particular for setting off his claims against the self-regulated organisation of valuers.As a ground for levying execution against the compensation fund shall be deemed the fact of a contingency under a contract of obligatory insurance of liability established by a decision of an arbitration court or recognised by the insurer.A claim for receiving a compensation payment from the compensation fund may be only made against a self-regulated organisation of valuers in the event coincidence of the following conditions:the funds received under a contract of obligatory insurance of liability are not enough to compensate for the damage caused by a valuer;a valuer has refused to allow the claim of a client or a third person for repair of damage or a client or third person has not received within a reasonable time a reply to the claim made.A claim for repair of damage from the compensation fund may be raised against the self-regulated organisation of valuers, of which a valuer is or was a member at the time of causing the damage.It shall not be allowable to make payments from the compensation fund (including the return to members of a self-regulated organisation of valuers of their dues), except for payments aimed at ensuring the property liability of members of the self-regulated organisation of valuers towards clients or third persons.Execution may not levied against the compensation fund under obligations of a self-regulated organisation of valuers, as well as under obligations of members of a self-regulated organisation of valuers, if such obligations are not connected with the exercise of the activity regulated by it.The rate of a compensation payment from the compensation fund to satisfy a claim or claims of clients or third persons against one valuer in respect of one contingency may not exceed six hundred thousand roubles.

Article 24.9. Terms of, and Procedure for, Placing Assets of the Compensation FundA self-regulated organisation of valuers, in order to place assets of the compensation fund for the purpose of preserving and increasing them, shall make a contract of trust management of such fund with a management company.The management company shall be obliged to commit all necessary actions aimed at preventing failures to comply with requirements for placement of the assets of the compensation fund established by this Federal Law and to make a contract with the specialized depository with which a contract has been made by the self-regulated organisation of valuers.The specialized depository shall exercise control over observance by the management company of the restrictions concerning placement of the compensation fund's assets, of the rules for placing these assets and requirements for their placement established by this Federal Law and the investment declaration adopted by the self-regulated organisation of valuers.The specialized depository shall notify a self-regulated organisation of valuers and the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers of all failures to comply with the requirements for placement of the compensation fund's assets established by this Federal Law.The management company and specialised depository shall be selected on the basis of the outcome

of a tender held in the procedure established by internal documents of a self-regulated organisation of valuers.The income derived from placement of the compensation fund's assets shall be used for replenishment of this fund and for covering the outlays connected with ensuring the proper placement such assets.Assets of the compensation fund shall be placed by the management company in compliance with the investment declaration adopted by a self-regulated organisation of valuers subject to the restrictions established by this Article. At least forty per cent of these assets must be invested into state securities of Russian Federation and no more than forty per cent of these assets may be invested into stocks of the Russian issuers established in the form of open joint stock companies which circulate in the organised securities market or into shares of unit investment funds.It shall not be allowable to invest more than 5 per cent of the compensation fund's assets in stocks of the same issuer, or to invest the compensation fund's assets into bills of exchange and securities that do not circulate in the organised securities market and in foreign securities.

Article 24.10. The National Council for Evaluation Activity and Other Associations of Self-Regulated Organisations of ValuersFor the purpose of ensuring the public interest, forming uniform approaches to the exercise of evaluation activity, developing a uniform position of valuers as to the regulation of their activities, coordinating the activities of self-regulated organisations of valuers, as well as for the purpose of interaction of self-regulated organisations of valuers with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies and consumers of services in the field of evaluation activity, self-regulated organisations of valuers shall form the National Council.The National Council shall be deemed a non-profit organisation established by self-regulated organisations of valuers, which are registered by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers and whose members constitute over fifty per cent of the self-regulated organisations of valuers uniting over fifty per cent of all valuers.A non-profit organisation complying with the requirements of Part Two of this Article shall be subject to registration as the National Council upon the expiry of three days as of the date of submitting the following documents to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers:application for registration as the National Council;properly attested copies of the constituent entities;copies of applications for joining the non-profit organisation of all its members attested by the non-profit organisation.The basic functions of the National Council shall be as follows:discussing matters of state policy in the field of evaluation activity;representing the interests of self-regulated organisations of valuers in federal state power bodies, state power bodies of the constituent entities of the Russian Federation and local self-government bodies;drawing up proposals as to the development of state policy in the field of evaluation activity;drawing up proposals as to the improvement of legal and economic regulation of evaluation activity;protection of the rights and legitimate interests of self-regulated organisations of valuers;development of federal evaluation standards;conducting a preliminary expert examination of normative legal acts of the Russian Federation regulating evaluation activity;considering draft normative legal acts of the Russian Federation regulating evaluation activity and presenting recommendations as to their endorsement by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;considering training programmes of the educational institutions for professional training of specialists in the field of evaluation activity and recommending such programmes for endorsement;developing programmes of professional training of valuers;devising recommendations in respect of the minimum work record of valuers, probation period for persons aspiring to become members of a self-regulated organisation of valuers;establishment of an all-Russia court of arbitration in the field of evaluation activity;Considering applications, petitions and complaints of self-regulated organisations of valuers, consumers of services in the field of evaluation activity and valuers.To exercise the functions established by this Federal Law, a collective managerial body shall be set

up within the National Council with the obligatory inclusion therein of one representative from each self-regulated organisation of valuers which is a member of the National Council.Independent experts, consumers of services in the field of evaluation activities, representatives of scientific and pedagogical communities and other persons who are not members or representatives of members of self-regulated organisations of valuers must constitute at least twenty five per cent of members of the collective managerial body of the National Council.The chairman of the collective managerial body of the National Council shall be elected at its first meeting from among its members.Representatives of federal state power bodies, state power bodies of the constituent entities of the Russian Federation and of local selfgovernment bodies may not be the chairman of the collective managerial body of the National Council.A collective executive managerial body shall be formed whose numerical strength and personal composition shall be endorsed by the collective managerial body of the National Council.Persons who are members of the collective executive managerial body of the National Council, as well as employees thereof, shall not be entitled:to establish legal entities engaged in evaluation activity or to be members of managerial bodies of such legal entities, of their branch and dependent companies;to make labour contracts with members of self-regulated organisations of valuers.Self-regulated organisations of valuers shall be entitled to establish unions (associations) in compliance with the legislation of the Russian Federation on non-profit organisations.

Chapter IV. Concluding Provisions

Article 25. Entry into Force of the Present Federal LawThe present Federal Law shall take effect on the day it is officially published.Certificates of education confirming that the holders have received professional training in the field of evaluation activity which were issued before the present Federal Law came into force shall be brought into conformity with the norms of the present Federal Law not later than July 1, 2000.

Article 26. Bringing Normative Legal Acts into Conformity with the Present Federal LawThe President of the Russian Federation is recommended and the Government of the Russian Federation is instructed to bring their normative legal acts into conformity with the present Federal Law.

President of the Russian Federation Boris YeltsinMoscow, the Kremlin

Federal Law No. 157-FZ of July 26, 2006 amended the present Federal LawSee the Federal Law in the previous wording

FEDERAL LAWNO. 135-FZ OF JULY 29, 1998ON EVALUATION ACTIVITY IN THE RUSSIAN FEDERATION(with the Amendments and Additions of March 21, November 14, 2002,January 10, February 27, 2003, August 22, 2004, January 5, July 27,2006, February 5, July 13, 24, 2007, June 30, 2008)

Adopted by the State Duma on July 16, 1998Approved by the Federation Council on July 17, 1998

Chapter I. General Provisions (Articles 1 - 8)Chapter II. The Grounds and Conditions for Making (Articles 9 - 17)EvaluationsChapter III. Regulation of Evaluation Activity (Articles 18 - 24.10)Chapter IV. Concluding Provisions (Articles 25 - 26)

Chapter I. General Provisions

Article 1. Legislation Regulating Evaluation Activity in the Russian FederationEvaluation activity shall be exercised in compliance with the international treaties made by the

Russian Federation, this Federal Law, as well as other federal laws and other normative legal acts of the Russian Federation regulating the relations which arise while exercising evaluation activity.

Article 2. Relations Regulated by the Present Federal LawThe present Federal Law defines the legal principles for regulating evaluation activity for the purposes of transactions with the objects of evaluation, where said objects belong to the Russian Federation, to the constituent regions thereof, or to municipal units, individuals and legal entities, as well as for other purposes.

Article 3. The Concept of Evaluation ActivityFor the purposes of the present Federal Law, evaluation activity shall be understood to mean a professional valuer's work to determine the market or some other value of an object undergoing evaluation.For the purposes of the present Federal Law, the market value of an object undergoing evaluation shall be understood to mean the most likely price at which the object undergoing evaluation in question can be alienated on the open, competitive market, when the parties to the deal act reasonably and have all necessary information, and when the price of the deal is not affected by any emergency circumstances; that is, when:one of the parties to the deal is not obligated to alienate the object undergoing evaluation, and the other party is not obligated to accept the deal;the parties to the deal are well informed about the object of the deal and act in their own interests;the object undergoing evaluation is put up on the open market in a public offer typical for similar objects;the price of the deal represents a reasonable remuneration for the object undergoing evaluation, and the deal is not concluded by the parties under coercion from anybody;the payment for the object undergoing evaluation is expressed in terms of money.

Article 4. Persons Engaging in Evaluation ActivityPersons engaging in evaluation activity shall be deemed the natural persons who are members of one of self-regulated organisations of valuers and who have insured their liability in compliance with the requirements of this Federal Law (hereinafter referred to as valuers).A valuer may independently exercise evaluation activity in private practice, as well as on the basis of a labour contract between a valuer and a legal entity complying with the terms established by Article 15.1 of this Federal Law.

Article 5. Objects of evaluation shall include:individual material objects (items);a set of items comprising the property of a person, including property of a specific type (movable or immovable, including enterprises);the right of ownership and other proprietary rights to property, or to the specific items comprising property;a right of claim, liability (indebtedness);works, services, information;other objects of civil rights which may be involved in civil transactions under Russian Federal legislation.

Article 6. The Right of the Russian Federation, the Constituent Regions Thereof, and Also of Municipal Units, Individuals and Legal Entities to Conduct Appraisals of the Objects Belonging to ThemThe Russian Federation, the constituent regions thereof, and also municipal units, individuals and legal entities shall have the right to have a valuer appraise any objects belonging to them on the grounds and terms laid down by the present Federal Law.The right to have an object appraised shall be unqualified, and shall not be subject to the procedures established by Russian Federation legislation for keeping state statistical records, and for drawing up business accounts and reports. This right shall also apply to the conduct of a second appraisal of the object undergoing evaluation. The results of the appraisal of the object undergoing evaluation may be used for correcting data in business accounts and reports.The results of the appraisal of the object undergoing evaluation may be appealed against by interested parties in accordance with the procedure established by Russian Federal legislation.

Article 7. Presumption in Setting a Market Value on an Object Undergoing EvaluationWhere a normative legal act which makes it obligatory to conduct an appraisal of the object in question, or where the contract to appraise the object (hereinafter referred to as the Contract) does not specify a particular type of value to be set on the object undergoing evaluation, the market value of the object shall be set.This rule shall also be applied where the pertinent normative legal act uses terms not prescribed by the present Federal Law or by valuation standards to define the type of value to be set on the object undergoing evaluation, including the terms "actual value", "reasonable value", "equivalent value", "realistic value", and others.

Federal Law No. 13-FZ of February 5, 2007 amended Article 8 of this Federal LawSee the Article in the previous wording

Article 8. Obligatory Appraisal of Objects Subject to EvaluationWhere a deal involves objects subject to evaluation belonging in full or in part to the Russian Federation, to the constituent regions thereof, or to municipal units, an appraisal of these objects shall be obligatory, including in cases that involve:determining the value of objects which belong to the Russian Federation, to the constituent regions thereof, or to municipal bodies, for purposes of their privatization or transfer to trust management, or for granting them on lease;using as security objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units;selling or otherwise alienating objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units;transferring debt obligations connected with objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units;transferring objects that belong to the Russian Federation, to the constituent regions thereof, or to municipal units as a contribution to the charter capital or funds of legal entities,and also when a dispute over the value of the object subject to evaluation arises, including in cases concerning:the nationalization of assets;the granting of hypothecary credits to individuals and legal entities where a dispute arises over the value of the thing hypothecated;the drawing up of a marriage settlement and the dividing of the property of divorcing spouses at the request of one of the parties or both parties where a dispute arises over the value of this property;the redeeming of assets from the owners for state or municipal needs, or the applying of other forms of requisition prescribed by Russian Federation legislation;the appraisal of objects subject to evaluation for the purpose of verifying the correctness of tax payments where a dispute arises over the tax base calculated.The present Article shall not extend to relations emerging in the case of disposal by state or municipal unitary enterprises or state and municipal institutions of the property attached thereto for economic management or operative control, except for cases when the disposal of property under Russian law is permitted with the consent of the owner of the property and also to relations emerging in the case of disposal of state or municipal property when state or municipal enterprises, state and municipal institutions are being re-organised and in the instances established by the Federal Law on the Specifics of Administration and Disposal of Railway Transport Property and the Federal Law on the Specifics of Management and Disposal of the Property and Stocks of Organisations Engaged in the Activity of Atomic Energy Use and on Amending Some Legislative Acts of the Russian Federation.

Federal Law No. 108-FZ of June 30, 2008 supplemented Article 8 of this Federal Law with Part 3

In respect of the state or municipal property transferred under a concession agreement by an awarding party to a concessionaire the establishment of the market value of such property is not compulsory, except as otherwise established by a federal law.

Chapter II. The Grounds and Conditions for Making Evaluations

Article 9. The Grounds for Appraising an Object Undergoing EvaluationThe grounds for evaluation shall be a contract of evaluation of the objects mentioned in Article 5 of

this Federal Law which is made by a client with a valuer or with the legal entity with which a valuer has concluded a labour contract.In the cases specified by Russian Federal legislation, the object undergoing evaluation may be appraised by the valuer on the grounds of a ruling by a law court, an arbitration court, an arbitration tribunal, and also by decision of an authorized body.The law court, arbitration court or arbitration tribunal shall be free in its choice of a valuer. The expenses on conducting an appraisal of the object undergoing evaluation, and also the pecuniary remuneration of the valuer shall be subject to refund (or payment) in accordance with the procedure prescribed by Russian Federal legislation.

Article 10. Obligatory Requirements for the Contract of EvaluationThe contract of evaluation shall be concluded in a simple written form.The contract of evaluation must contain the following:object undergoing evaluation;type of property cost (evaluation method);amount of monetary remuneration for evaluation;data on obligatory insurance of the valuer's civil liability in compliance with this Federal Law;name of the self-regulated organisation of valuers of which the valuer is a member and location of this organisation;indication of the standards of evaluation activity which are to be applied in evaluation;indication of the extent of, procedure and grounds for, additional liability with respect to the liability, established by the civil legislation and Article 24.6 of this Federal Law, of a valuer and the legal entity with which a valuer has made a labour contract.The contract of evaluation made by a client and the legal entity must show data on the valuer or valuers who are to carry out the evaluation, including the family name, first name and patronymic of the valuer or valuers.The contract of evaluation of both a single object and a number of objects must contain a precise indication of this object or objects, as well a description of this object or objects.In respect of the evaluation of objects possessed by the Russian Federation, the constituent entities of the Russian Federation or municipal formations, the contract of evaluation shall be made on behalf of the client by the person authorized by the owner to conclude transactions with the objects, if not otherwise established by the legislation of the Russian Federation.

Article 11. General Requirements on the Subject Matter of the Report on the Appraisal of an Object Undergoing EvaluationThe Report on Appraisal of the Object Undergoing Evaluation (hereinafter referred to as the Report) must not be ambiguous or misleading. It must obligatorily indicate the date when the object undergoing evaluation was appraised, the evaluation standards used, the purposes and tasks of appraising the object undergoing evaluation, and also furnish other data needed for a full and unambiguous interpretation of the results (shown in the Report) obtained in appraising the object undergoing evaluation.Where a value other than the market value is determined in appraising an object undergoing evaluation, the Report must indicate the criteria for establishing the value of the object and the reasons for not determining its market value.The Report must indicate the following:the date when the Report was drawn up and its index number;the grounds for the valuer to conduct an appraisal of the object undergoing evaluation;the valuer's location and details on the valuer's membership in a self-regulated organisation of valuers;a precise description of the object undergoing evaluation, and where the object belongs to a legal entity, the particulars of the legal entity and the book value of the object undergoing evaluation in question;the valuation standards for determining the relevant type of value of the object undergoing evaluation; the reasons for using these standards in appraising the object in question; a list of data used in appraising the object in question, indicating their sources, and also the assumptions used in appraising the said object;the sequence in determining the value of the object undergoing evaluation and the final value arrived at, and also the restrictions and limits in applying the result obtained;the date when the value of the object undergoing evaluation was determined;a list of the documents used by the valuer to establish the quantitative and qualitative

characteristics of the object undergoing evaluation.The Report may contain other data which, in the valuer's opinion, are essential to a full reflection of the method he has used to calculate the value of the particular object undergoing evaluation.Russian Federal legislation may prescribe special forms of Reports concerning the appraisal of certain specific types of objects.The Report has to be numbered page by page, bound and signed by the valuer or valuers who has (have) carried out the evaluation, and the personal stamp of the valuer or the stamp of the legal entity, with which the valuer has made a labour contract, has to be affixed thereto.

See Federal Standard of Appraisal No. 3 Requirements for the Report on Appraisal (FSG No. 3) approved by Order of the Ministry of Economic Development No. 254 of July 20, 2007

Article 12. Trustworthiness of the Report As a Document Containing Information of Evidential SignificanceThe final market or other value of the object undergoing evaluation shown in the Report, drawn up on the grounds and in accordance with the procedure prescribed by the present Federal Law, shall be held to be trustworthy, and may be recommended for the purpose of making a transaction with the object, unless otherwise established by Russian Federal legislation and judicial practice.

Article 13. Voidability of the Data Contained in the ReportWhere a dispute arises over the trustworthiness of the market or other value of the object subject to evaluation as shown in the Report, owing, among other things, to the presence of another Report on the appraisal of the same object, the dispute shall be subject to a hearing by a law or arbitration court in accordance with its jurisdiction, by an arbitration tribunal if the parties to the dispute or to the Contract agree, or in accordance with the procedure prescribed by the Russian Federal legislation that regulates evaluation activity.The law or arbitration court, or the arbitration tribunal, shall have the right to obligate the parties to transact a deal at the price set during the hearing of the dispute at the court session only where it is obligatory to transact the deal in accordance with Russian Federal legislation.

See Informational Letter of the Presidium of the Higher Arbitration Court of the Russian Federation No. 92 of May 30, 2005 on the Consideration by Arbitration Courts of Cases Concerning the Contesting of the Evaluation of Property Made by an Independent Appraiser

Article 14. Rights of the ValuerThe valuer shall have the right to:autonomously apply the methods of appraising objects undergoing evaluation in accordance with valuation standards;require the client, when conducting an obligatory appraisal of the object undergoing evaluation, to provide full access to the documents needed for conducting the appraisal;obtain any explanations and additional information needed for conducting the evaluation in question;request from third parties, in writing or orally, any information needed for appraising the object undergoing evaluation, but not information which constitutes a state or commercial secret; if rejection of the request for the said information significantly affects the trustworthiness of the appraisal of the object undergoing evaluation, the valuer shall indicate this in his Report;invite other valuers or specialists, where necessary, to participate on a contractual basis in appraising the object undergoing evaluation;decline to appraise the object when the client has violated the terms of the contract, failed to provide the necessary information about the object undergoing evaluation, or failed to provide the work conditions stipulated by the contract;to demand the reimbursement of expenses connected with the appraisal of an object undergoing evaluation and a pecuniary award for appraisal of the object undergoing evaluation on the basis of the ruling of a court, arbitration court or arbitration tribunal.

Article 15. Duties of the ValuerThe valuer shall be obligated:to be a member of a self-regulated organisation;to observe, when conducting evaluation activity, the requirements of the present Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards,

as well as the standards of, and rules for, evaluation activity endorsed by the self-regulated organisation of which he is a member;to follow the business and professional ethical rules established by the self-regulated organisation of valuers (hereinafter referred to as business and professional ethical rules ) of which he is a member, as well as to pay the membership fees established by such self regulated organsaition of valuers;notify the client or the legal entity, which he has made a labour contact with, that he is unable to participate in evaluation where circumstances have arisen which hamper the conduct of the evaluation in an unbiased way;guarantee the safekeeping of the documents received from the client and third parties in the course of evaluation;to provide the client with information on his membership in a self-regulated organsation of valuers;to provide the self-regulated organisation of valuers with information about the legal entity, which he has made a labour contract with, including information about the compliance of such legal entity with the terms established by Article 15.1 of this Federal Law, as well as data on any changes in this information;to present, at the request of a client, the insurance policy and the education certificate proving his professional training in evaluation activity;not to divulge the information that has been received by him from the client in the course of evaluation, except for the instances provided for by the legislation of the Russian Federation;in the cases, provided for by the legislation of the Russian Federation, to issue copies of the reports kept in custody and the information contained therein to law enforcement, judicial and other authorized state bodies upon the request thereof;to present on demand of a client an extract from the register of members of the self-regulated organisation of valuers of which he is a member.

Article 15.1. Duties of the Legal Entity, with Which the Valuer Has Made a Labour ContractA legal entity which intends to make a contract of evaluation with a client shall be obliged:to have on the staff at least two persons complying with the requirements of Part Two of Article 24 of this Federal Law;to ensure the safekeeping of the documents received from clients and third parties in the course of evaluation;to notify a client of the impossibility of its participation in evaluation as a result of circumstances impeding the conduct of an unbiased evaluation;to present at the request of a client the contract of obligatory insurance of the valuer's liability made in compliance with Article 24.7 of this Federal Law;not to divulge the confidential information received from a client in the course of evaluation, except in the cases provided for by the legislation of the Russian Federation;to provide to the self-regulated organsiation of valuers, of which the valuer is a member, for the exercise of control over his evaluation activity access to the documents and materials serving as a basis for the evaluation, except for information constituting a commercial secret of the legal entity or a client, as well as other confidential information;in the cases provided for by the legislation of the Russian Federation to present copies of the reports kept in custody or the information contained therein to law enforcement, judicial and other authorized bodies upon the request thereof.

Article 16. Independence of the ValuerAppraisal of an object undergoing evaluation may not be effected by a valuer, if he is the founder, shareholder, official or employee of the legal entity being the client, a person who has a property interest in the object of valuation or is a close relative or relative by marriage of the said persons.Appraisal of an object of evaluation shall not be permitted where:the valuer has proprietary or liability rights outside the Contract with respect to the object undergoing evaluation;the valuer is a participant (member) or creditor of the legal entity being the client or such legal entity is a creditor or insurer of the valuer.The client or other interested parties shall not be permitted to interfere in the valuer's activity if this can have a negative effect on the trustworthiness of the result obtained in appraising the object undergoing evaluation; i.e., if, among other things, such interference limits the range of matters to be clarified or determined when appraising the object undergoing evaluation.The amount of payment due to the valuer for appraising the object undergoing evaluation shall not depend on the ultimate value of the object.

Article 16.1. Abolished.See the text of Article 16.1

Article 17. Abolished.See the text of Article 17

Chapter III. Regulation of Evaluation Activity

Article 18. Regulation of Evaluation Activity and Activity of Self-Regulated Organisations of ValuersThe state regulation of evaluation activity and the activity of self-regulated organisations of valuers, as regards supervision and normative and legal regulation, shall be effected by the federal executive bodies authorized by the Government of the Russian Federation (hereinafter referred to as the authorized federal bodies).Evaluation activity shall be regulated by the National Council for Evaluation Activity (hereinafter referred to as the National Council), as regards the development of federal evaluation standards, and by self-regulated organisations of valuers, as regards the development and endorsement of standards and rules for evaluation activity. Control over the exercise by members of a self-regulated organsaition of evaluation activity shall be exerted by these organsiations.

Federal Law No. 129-FZ of July 13, 2007 amended Article 19 of this Federal LawSee the Article in the previous wording

Article 19. Functions of the Authorized Federal BodiesThe functions of the authorized federal bodies shall be as follows:to develop state policy in the field of evaluation activity;to effect normative and legal regulation in the field of evaluation activity and to endorse federal evaluation standards;To maintain the unified state register of self-regulated organsiations of valuers;To exercise supervision over the compliance of self-regulated organisations of valuers with the requirements of this Federal Law;to file in court an application for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisation of valuers.

Article 20. Standards of Evaluation ActivityStandards of evaluation activity shall be determined by the requirements for the procedure for conducting evaluations and exercising evaluation activity.Standards of evaluation activity shall be subdivided into the federal evaluation standards and the standards and rules for evaluation activity.The federal evaluation standards shall be developed by the National Council subject to international evaluation standards.The developed federal evaluation standards shall be sent by the National Council for approval to the authorized federal body exercising the functions of normative and legal regulation of evaluation activity. The authorised federal body exercising the functions of normative and legal regulation of evaluation activity shall be obliged, at the latest in sixty working days as of the date of receiving the federal evaluation standards, to endorse them or to issue a reasoned refusal to do so in writing.The authorized federal body exercising the functions of normative and legal regulation of evaluation activity shall be entitled to deny endorsement of the federal evaluation standards in the event of their noncompliance with the requirements of the Constitution of the Russian Federation, international treaties made by the Russian Federation or this Federal Law.The endorsed federal evaluation standards shall be subject to publication by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity in the procedure established by the Government of the Russian Federation and shall be placed on the official Internet site of the federal executive body exercising the functions of normative and legal regulation of evaluation activity.The standards and rules for evaluation activity shall be developed and endorsed by a self-regulated organisation of valuers and may not contradict the federal evaluation standards.

Article 21. Professional Training of ValuersThe professional training of valuers shall be conducted by higher educational establishments, both

state and private, expressly set up for this purpose, or at the faculties (departments, subfaculties) of higher educational establishments, both state and private, which have the right to conduct such training in accordance with Russian Federation legislation.

Article 22. Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be a non-profit orgnisation established for the purpose of regulation of, and control over, evaluation activity which is included into the unified state register of self-regulated organisations and unites valuers under the conditions of membership therein.The status of a non-profit organisation of valuers shall be acquired by a non-profit organisation in compliance with the regulations of this Article as of the date of its inclsion into the unified state register of self-regulated organisations of valuers. As grounds for the inclusion of a non-profit organisation into the unified state register of self-regulated organisations of valuers shall be deemed the compliance thereof with the following requirements:such organisation's unifying as its members at least 300 natural persons complying with the requirements established by Part Two of Article 24 of this Federal Law;existence of a compensation fund formed by monetary membership dues in the amount established by Part Three of Article 24.6 of this Federal Law;presence of a collective managerial body (council, supervisory board), of functionally specialized bodies and structural subdivisions;presence of standards and rules for evaluation activity endorsed in compliance with the requirements of this Federal Law.Employees of a self-regulated organisation of valuers shall not be entitled to exercise evaluation activity.A self-regulated organsition of valuers shall be obliged to take measures in due time aimed at preventing a conflict of interests between the self-regulated organsation of valuers and members thereof, as well as at the timely settlement of such conflicts.A non-profit organisation with the status of a self-regulated orgainsation of valuers shall be liquidated in compliance with the legislation on non-profit organisations. A representative of the National Council must be included into the liquidation commission of a non-profit organisation that has the status of a self-regulated organisation of valuers.A non-profit organisation with the status of a self-regulated organisation of valuers may not be re-organised.

As to the self-regulating organisations, see Federal Law No. 315-FZ of December 1, 2007

Article 22.1. Functions of Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall exercise the following functions:development and endorsement of standards and rules for evaluation activity, business and professional ethical rules;development and endorsement of the rules for, and terms of, admission to the self-regulated organisation of valuers, additional requirements for ensuring the property liability of its members when exercising evaluation activity, establishment of the rate of membership dues and of the procedure for paying them;representation of its members' interests in their relations with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, as well as with international professional organisations of valuers;admission and expulsion from a self-regulated organisation of valuers for the reasons provided for by this Federal Law and internal documents of the self-regulated organisation of valuers;control over exercise of evaluation activity by its members, as regards their compliance with the requirements of this Federal law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;keeping the register of members of the self-regulated organisation of valuers and providing the information contained in this register to the persons concerned in the procedure established by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;arranging informational and methodological support for its members;exercise of other functions established by this Federal Law.

Article 22.2. Basic Rights and Duties of a Self-Regulated Organisation of Valuers

A self-regulated organisation of valuers shall be entitled:to represent the interests of its members in their relations with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, as well as with international professional organisations of valuers;to dispute judicially acts of federal executive bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies and actions (the failure to act) of these bodies breaching the rights and legitimate interests of all its members or of a part thereof.A self-regulated organisation shall be obliged:to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation;to form a compensation fund to ensure the meeting of the liability of its members to consumers of services in the field of evaluation activity and third persons;to exercise control over compliance of its members with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;to apply disciplinary sanctions, provided for by this Federal Law and internal documents of the self-regulated organisation of valuers, in respect of its members;to notify the authorized federal body, exercising the functions of supervision over the activities of self-regulated organisations of valuers, of the instances of its non-compliance with the requirements provided for by Part Three of Article 22 of this Federal Law within ten days as of the time of discovering such non-compliance;to deny admission to the self-regulated organisation of valuers for the reasons provided for by this Federal Law and internal documents of the self-regulated organisation of valuers, for failures to meet the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;to keep the register of members of the self-regulated organisation of valuers and to provide the information contained in this register to persons concerned in the procedure established by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;to organise professional re-training of valuers.

Article 22.3. Disclosure of Information by a Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be obliged to place the following on the official Internet site of the self-regulated organisation of valuers:the constituent documents;standards and rules for evaluation activity, as well as business and professional ethical rules;regulations on the collective managerial body of the self-regulated organisation of valuers, on the structural subdivision thereof exercising control over evaluation activity of members of the self-regulated organisation of valuers, on the body in charge of considering cases concerning the application of disciplinary sanctions in respect of members of this organisation (hereinafter referred to as the disciplinary committee), on other bodies and structural subdivisions, as well as information about the facts of imposing disciplinary penalties, if any);list of the members of the self-regulated organisation of valuers whose membership therein has been terminated, including the persons who have been expelled from the self-regulated organisation of valuers for failing to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, business and professional ethical rules in the last three years of activity of the self-regulated organisation of valuers;information on non-compliance of the self-regulated organisation of valuers with the requirements established by Part Three of Article 22 of this Federal Law (including information about the date of emergence of the non-compliance of the self-regulated organisation of valuers with the said requirements, about measures taken and (or) planned by the self-regulated organisation of valuers for elimination of such non-compliance);rules for, and terms of, admission to the self-regulated organisation of valuers, rate of membership dues and procedure for paying them, additional requirements of the procedure for guaranteeing the property liability of its members for the exercise of evaluation activity;information about the members' reports. Information content and time periods of placement of this information shall be governed by internal documents of the self-regulated organisation of valuers in accordance with the second paragraph of part three of this Article; information about the

compensation fund thereof, including information about assessment of the compensation fund in monetary terms, about the investment declaration of the compensation fund and facts of levying execution against the compensation fund;information about the management company with which a contract of trust management for the compensation fund has been made (including information about its name, location, licence, as well as contact information);information about the specialized depository with which a depository contract has been made (including information about its name, location, licence and contact information);information about contracts of obligatory insurance of liability of members of the self-regulated organisation of valuers and information about the insurers with which such contracts have been made (including information about their denomination, location, licences and contact information);information about acquisition by officials, or employees of the self-regulated organisation of valuers, or by affiliated persons thereof, of securities whose issuers or debtors in respect of which are legal entities with which members of the self-regulated organisation have concluded labour contracts;Information about the results of inspections of the activities of members of the self-regulated organisation of valuers;Information about the emergence of a conflict of interests between the self-regulated organisation of valuers and members thereof.A self-regulated organsaition of valuers shall be obliged to place at the official Internet site of the self-regulated organisation of valuers all amendments made to the documents, or changes in the information, specified by Part One of this Article at the latest on the day following the date when such changes were adopted, took place or became known to the self-regulated organisation of valuers.A self-regulated organisation of valuers shall be obliged to devise and endorse regulations on disclosing the establishing the following:the procedure for submitting reports to the self-regulated organisation of valuers by members thereof and the scope of such reports;the scope of information about reports of members of the self-regulated organisation of valuers to be published;the procedure for supplying the information contained in the register of members of the self-regulated organisation of valuers at the demand of citizens and legal entities;other requirements which do not contradict this Article.

Federal Law No. 129-FZ of July 13, 2007 amended Article 23 of this Federal LawSee the Article in the previous wording

Article 23. Procedure for Including a Non-Profit Organisation into the Unified State Register of Self-Regulated Organisations of ValuersA non-profit organisation complying with the requirements of Part Three of Article 22 of this Federal Law shall be entitled to file an application with the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers for inclusion in the unified state register of self-regulated organisations of valuers.The authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall decide on the inclusion of, or on the refusal to include, a non-profit organisation into the unified state register of self-regulated organisation valuers within seven days of the date of the submission of the following documents by this non-profit organisation:an application for inclusion into the unified state register of self-regulated organisations of valuers;copies of the constituent documents attested and certified by a notary public;a copy of the certificate of the non-profit organisation's registration with a tax authority attested and certified by a notary public;copies, attested by a nonprofit organisation, of documents on education confirming the obtaining by its members of professional knowledge in the field of the evaluation activity in accordance with the educational programmes of the higher professional education, additional professional education or the programmes of the professional retraining of specialists in the field of the evaluation activity;copies of regulations on the collective managerial body, on the structural subdivision exercising control over evaluation activity of members of such organisation and on the disciplinary committee attested by the non-profit organisation;copies of the standards and rules for evaluation activities attested by the non-profit organisation;copies of the certificates attested by the non-profit organisation proving that members thereof do not have previous un-cancelled convictions for economic crimes, as well as for crimes of medium

gravity, grave and especially grave crimes;copies of the documents attested by the non-profit organisation proving the establishment of the compensation fund in the amount set by this Federal Law;copies of applications of its members for joining this organisation attested by it;a copy of the register of the non-profit organisation's members attested by it.A decision of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers on the inclusion of, or on the refusal to include, a non-profit organisation in the unified state register of self-regulated organisations of valuers shall be sent in writing to this non-profit organisation within seven days as of the date of adopting the appropriate decision.A decision of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers, or on the refusal to include a non-profit organisation into the unified state register of self-regulated organisations may be taken for the following reasons:the non-profit organisation does not comply with any of the requirements provided for by Part Three of Article 22 of this Federal Law;the non-profit organisation has not presented the documents provided for by Part Two of this Article or has presented documents containing unreliable information.A decision on the refusal to include a non-profit organisation into the unified state register of self-regulated organisations of valuers may be appealed against by this non-profit organisation in an arbitration court.A self-regulated organisation of valuers shall be removed from the unified state register of self-regulated organisations of valuers by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers, if this organisation has filed an application for removal thereof from the said register or in the event of liquidation of a non-profit organisation with the status of a self regulated organisation of valuers.In other cases, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file an application with an arbitration court for removing a self-regulated organisation of valuers from the unified state register of self-regulated organsations of valuers. The following shall be deemed grounds for applying to an arbitration court:non-compliance of the self-regulated organisation of valuers with one of the requirements provided for by Part Three of Article 22 of this Federal Law detected on the basis of the results of an inspection;failure of the self-regulated organisation of valuers to comply with the demand to eliminate in due time the violations detected by the authorised federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers and stated in the order thereof.

Federal Law No. 129-FZ of July 13, 2007 amended Article 24 of this Federal LawSee the Article in the previous wording

Article 24. Requirements for Membership in a Self-Regulated Organisation of ValuersA valuer anyone may only be a member of one self-regulated organisation of valuers complying with the requirements of this Federal Law.To join a self-regulated organisation of valuers a natural person shall submit the following:document on education confirming the obtaining of professional knowledge in the field of the evaluation activity in accordance with the educational programmes of the higher professional education, additional professional education or the programmes of the professional retraining of specialists in the field of the evaluation activity;certificate proving the absence of un-cancelled previous convictions for economic crimes, as well as for crimes of medium gravity, grave and especially grave crimes.A self-regulated organisation of valuers, when admitting natural persons thereto, shall be entitled to raise other requirements connected with the exercise of evaluation activity by a valuer and not contravening this Federal Law and other federal laws.The collective managerial body of a self-regulated organisation of valuers shall decide on the compliance of a person with the requirements established by Parts Two and Three of this Article within seven days as of the day of receiving the application and required documents from such person.A person in respect of whom a decision has been rendered on his compliance with the requirements established by Parts Two and Three of this Article shall be deemed admitted to a self-regulated organisation of valuers, and data on such person shall be entered to the register of members of the self-regulated organsation of valuers within three days as of the date of such person presenting a

contract of obligatory insurance of his liability complying with the requirements established by Article 24.7 of this Federal Law and paying the membership dues established by the self-regulated organisation of valuers. Such person shall be issued a document proving his membership in a self-regulated organisation of valuers within ten days as of the date of entering data on him in the register of members of the self-regulated organisation of valuers.The following shall be deemed as reasons for refusing to admit a person to a self-regulated organisation of valuers:non-compliance of the person with the requirements of this Article;non-compliance of the person with the requirements endorsed by the self-regulated organisation of valuers for admission to the self-regulated organisation of valuers;expulsion of the person from other self-regulated organisation of valuers for failing to comply with the requirements of this Federal Law and the normative legal acts of the Russian Federation and federal evaluation standards adopted in compliance with it, if less than three years have passed since the date of expulsion from the self-regulated organisation of valuers.A person who has been denied admission to a self-regulated organisation of valuers shall be entitled to appeal against such denial in an arbitration court.A valuer's membership in a self-regulated organisation of valuers shall be terminated by the collective managerial body of a self-regulated organisation of valuers on the basis of the following:the valuer's application for leaving the self-regulated organisation of valuers;endorsement by the collective managerial body of the self-regulated organisation of valuers of the decision to expel the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.A person in respect of whom it has been decided to terminate his membership in a self-regulated organisation of valuers shall be obliged to notify the customer under a contract of evaluation or the legal entity with which he has made a labour contract of the fact of termination of his membership in the self-regulated organisation of valuers and of the impossibility of signing an evaluation report.A self-regulated organisation of valuers at the latest on the day following the date of the collective managerial body of the self-regulated organisation of valuers adopting a decision to terminate the membership of a valuer in the self-regulated organisation of valuers shall be obliged to place such decision on the official Internet site of the self-regulated organisation of valuers, as well as to send copies of such decision:to the person in respect of whom it is decided to terminate his membership in the self-regulated organisation of valuers;to the legal entity with which the person has made a labour contract, if information about the labour contract made has been previously supplied to the self-regulated organisation of valuers;to all self-regulated organisations entered to the unified state register of self-regulated organisations of valuers in the event of the collective managerial body of the self-regulated organisation of valuers endorsing the decision on the expulsion of the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, as well as with federal evaluation standards;to the National Council in the event of endorsing by the collective managerial body of the self-regulated organisation of valuers the decision to expel the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.

Article 24.1. The Maintaining by a Self-Regulated Organisation of Valuers of the Register of Members of the Self-Regulated Organisation of ValuersThe composition of the data to be included into the register of members of a self-regulated organisation of valuers in compliance with the requirements of this Federal Law and the procedure for keeping this register by the self-regulated organisation of valuers and for placing the information contained in the register in information systems of general use shall be endorsed by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity.On the basis of the provisions of this Federal Law the information contained in the register of members of a self-regulated organisation of valuers shall be provided on demand of citizens and legal entities in the procedure determined by the internal documents of the self-regulated

organisation. The time period for providing such information may not exceed seven days as of the day of receiving the appropriate demand.

Federal Law No. 220-FZ of July 24, 2007 amended Article 24.2 of this Federal LawSee the Article in the previous wording

Article 24.2. Bodies of a Self-Regulated Organisation of ValuersA procedure for the formation, structure, scope and term of authority of bodies of a self-regulated organisation of valuers, as well as a procedure for decision-making by such bodies shall be established by internal documents of the self-regulated organisation of valuers in compliance with this Federal Law and other federal laws.A general meeting of members of a self-regulated organisation of valuers shall be the supreme managerial body of the self-regulated organisation of valuers in charge of the matters referred to the scope of authority thereof by this Federal Law and other federal laws.A general meeting of members of a self-regulated organisation of valuers shall be called at least once a year in the procedure established by the charter thereof.The settlement of the following issues shall pertain to the scope of exclusive authority of a general meeting of members of a self-regulated organisation of valuers:endorsement of the regulations on the collective managerial body of the self-regulated organisation of valuers, formation of the collective managerial body of the self-regulated organisation of valuers, adoption of decisions on early termination of the authority of the collective managerial body of the self-regulated organisation of valuers or on early termination of authority of its members;endorsement of the regulations of the self-regulated organisation of valuers on disclosure of information;endorsement of the regulations on the disciplinary committee, establishment of the disciplinary committee, adoption of decisions on early termination of its authority or on early termination of the authority of its members;endorsement in the procedure and with the periodicity established by the charter, of reports of the collective managerial body of the self-regulated organisation of valuers and of the executive body thereof on the results of financial and economic, as well as of organisational activity, of the self-regulated organisation of valuers;endorsement of the regulations on membership in the self-regulated organisation of valuers;adoption of decisions on voluntary liquidation of a non-profit organisation and on appointing the liquidator or the liquidation committee.The procedure for holding general meetings of members of a self-regulated organisation of valuers, the procedure for compiling the agenda of the meetings and determining the quorum, terms of, and procedure for, voting shall be determined by a self-regulated organisation of valuers independently in its charter.The collective managerial body of a self-regulated organisation of valuers shall include at least seven persons. The following shall pertain to the exclusive authority of a self-regulated organisation of valuers:endorsement of the standards and rules for evaluation activity, as well as of business and professional ethical rules;admission of valuers to the self-regulated organisation of valuers and termination of their membership in the self-regulated organisation of valuers;establishment of the committees provided for by internal documents of the self-regulated organisation of valuers, adoption of decisions on early termination of the authority of such committees or on early termination of the authority of their members, endorsement of regulations on the structural subdivision exercising control over the evaluation activity of members of the self-regulated organisation of valuers and on other committees;endorsement of the investment declaration of the compensation fund;endorsement of regulations on the procedure for exercising control over the evaluation activity of members of the self-regulated organisation of valuers;other matters referred by the charter to the exclusive authority of the collective managerial body of the self-regulated organisation of valuers.Persons who are not members of a self-regulated organisation of valuers and (or) affiliated persons thereof may constitute at most 25 per cent of members of the collective managerial body of the self-regulated organisation of valuers.Members of the collective managerial body of a self-regulated organisation of valuers may not be elected to the disciplinary committee thereof.

The person exercising the functions of the personal executive body of a self-regulated organisation of valuers and the persons included in the collective executive body of a self-regulated organisation of valuers shall not be entitled:to establish legal entities or be members of managerial bodies of legal entities engaged in evaluation activity, of their branches and dependent companies;to make labour contracts with the legal entities which have made labour contracts with members of the self-regulated organisation of valuers, as well as with the branches and dependent companies thereof;to make civil law contracts, including contracts of rendering payable services, under which the customer is a member of the self-regulated organisation of valuers.To ensure its activity, a self-regulated organisation of valuers shall establish the following:a structural subdivision exercising control over the evaluation activity of members of the self-regulated organisation of valuers;disciplinary committee and council of experts;other bodies and structural subdivisions determined by internal documents of the self-regulated organisation of valuers.The council of experts of a self-regulating organisation of evaluators shall carry out an expert examination of reports on the evaluation of securities and also an expert examination of other types of reports of evaluators in accordance with the legislation of the Russian Federation.The approval of the regulations on the council of experts of a self-regulating organisation of evaluators, the formation of the council of experts, the adoption of decisions on the early termination of its authority or of the authority of its members, shall be the exclusive competence of a general meeting of members of the self-regulating organisation of evaluators.The council of experts of a self-regulating organisation of evaluators shall be formed mainly from among the members of the self-regulating organisation in a number of at least seven persons.".

Article 24.3. Procedure for Exercising Control over Evaluation Activity by a Self-Regulated Organisation of ValuersControl over evaluation activity of members of a self-regulated organisation of valuers shall be exercised by the appropriate structural subdivision thereof consisting of employees of the self-regulated organisation of valuers by way of holding planned and extraordinary inspections.A planned inspection shall be held to ensure the compliance of members of a self-regulated organisation of valuers with the requirements of this Federal Law, other federal laws and other normative acts of the Russian Federation, federal evaluation standards, standards and rules of evaluation activity, as well as business and professional ethical rules, additional requirements for the procedure for ensuring the property liability of valuers when exercising evaluation activity. The duration of a planned inspection may not exceed thirty days.A planned inspection shall be held at least once every three years and at most once a year.An extraordinary inspection may be conducted by a self-regulated organisation of valuers on the grounds of a reasoned complaint sent to the self-regulated organisation of valuers about a valuer's failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.Internal documents of a self-regulated organisation of valuers may provide for other grounds for conducting an extraordinary inspection.In the course of an extraordinary inspection solely the facts indicated in a complaint or the facts to be inspected for other reasons shall be subject to examination.A valuer shall be obliged to provide the information required for holding an inspection on demand of the self-regulated organisation of valuers in the procedure determined by internal documents of the self-regulated organisation of valuers.In the event of detecting any violations, the materials showing the results of the inspection shall be passed over to the disciplinary committee.A self-regulated organisation of valuers, as well as its employees and officials participating in an inspection, shall be held responsible in respect of non-divulgence and non-dissemination of the data obtained in the course of the inspection in compliance with this Federal Law and other federal laws.

Article 24.4. Procedure for Imposing Disciplinary Penalties on Members of a Self-Regulated Organisation of ValuersThe disciplinary committee shall be obliged to consider actions of members of the self-regulated organisation of valuers and cases of its members' failure to comply with the requirements of this

Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules, requirements for paying obligatory fees to the self-regulated organisation of valuers and additional requirements of the procedure for ensuring property liability of valuers when exercising evaluation activity.The procedure for considering said complaints and cases, as well as the contents of said violations, shall be determined by internal documents of a self-regulated organisation of valuers.When considering complaints against actions of members of a self-regulated organisation of valuers, the disciplinary committee shall be obliged to invite to its sittings the persons who have sent such complaints, as well as the members of the self-regulated organisation of valuers in respect of whom cases on imposing disciplinary penalties are being considered.The disciplinary committee shall be entitled to decide on imposing the following disciplinary penalties:issuance of orders obliging a member of the self-regulated organisation of valuers to eliminate detected violations and establishing the time for elimination of such violations;issuance of a warning to a member of the self-regulated organisation of valuers;imposition of a fine upon a member of the self-regulated organisation of valuers in the amount established by internal documents of the self-regulated organisation of valuers;recommendation to expel a valuer from the self-regulated organisation of valuers to be considered and endorsed by the collective managerial body of the self-regulated organisation of valuers;other measures established by internal documents of the self-regulated organisation of valuers.The decisions provided for by Paragraphs from Two to Four and Six of Part Four of this Article shall enter into force as of the time of their adoption by the disciplinary committee. The decision provided for by Paragraph Five of Part Four of this Article may be adopted by at least 75 per cent of votes of members of the disciplinary committee attending its sitting and shall enter into force as of the time of its endorsement by the collective managerial body of the self-regulated organisation of valuers.A self-regulated organisation of valuers, within two working days as of the date of the disciplinary committee adopting the decision to impose a disciplinary penalty upon a member of the self-regulated organisation of valuers shall send copies of such decision to the member of the self-regulated organisation of valuers and to the person who has filed the complaint in respect of which such decision has been adopted.Decisions of the disciplinary committee may be appealed against by members of a self-regulated organisation of valuers with the collective managerial body of the self-regulated organisation of valuers at the time established by the self-regulated organisation of valuers.The decision of the collective managerial body of a self-regulated organisation of valuers on the endorsement of the recommendation of the disciplinary committee to expel a person from the self-regulated organisation of valuers may be appealed against by the persons expelled from the self-regulated organisation of valuers with an arbitration court within three months as of the date of rendering such decision.The monetary funds received by a self-regulated organisation of valuers as a result of imposition of a fine upon a member of the self-regulated organisation of valuers in compliance with this Article shall be entered into the compensation fund of the self-regulated organisation of valuers.

Article 24.5. Supervision over the Activities of Self-Regulated Organisations of ValuersSupervision over the activities of self-regulated organisations of valuers shall be exercised by holding planned and extraordinary inspections by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers.A planned inspection of the activity of a self-regulated organisation of valuers shall be conducted once every two years in compliance with the plan approved by the federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers.The decision to hold an extraordinary inspection of the activities of a self-regulated organisation of valuers shall be rendered by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers on the basis of applications of legal entities, natural persons, federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, law-enforcement agencies in respect of violations by the self-regulated organisation of valuers or by members thereof of this Federal Law, other federal laws and other normative legal acts of the Russian Federation.In the course of an inspection of the activities of a self-regulated organisation of valuers the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall be entitled to request from the specialized depository that has made a

depository agreement with the self-regulated organisation of valuers information about the assessment of its compensation fund in monetary terms.The authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall notify the self-regulated organisation of valuers in writing of its decision adopted on the basis of the materials based on the results of an inspection at the latest in three days as of the date of adopting such decision.In the event of detecting failures to comply with the requirements established by Part Three of Article 22 of this Federal Law, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file an application with an arbitration court for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.In the event of detecting other violations, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall send an order to eliminate the detected violations within a reasonable time to the self-regulated organisation of valuers.An order of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers to eliminate detected violations may be appealed against by a self-regulated organisation of valuers in an arbitration court.In the event of failure to follow in the established time an order to eliminate detected violations, the authorised federal body exercising the functions of supervision over the activities of self-regulated organisation of valuers shall file with an arbitration court an application for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.A self-regulated organisation of valuers that has detected its noncompliance with the requirements of Part Three of Article 22 of this Federal Law shall be entitled to file an application in writing with the authorized federal body exercising the functions of supervision over the activities of self-regulated organisation of valuers in respect of the detected non-compliance with a description thereof, indication of the date of its emergence and of the measures aimed at elimination of it which are being taken and (or) planned.Within two months after receipt by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers of an application concerning a detected noncompliance, a self-regulated organisation of valuers may not be excluded from the unified state register of self-regulated organisations of valuers for the reason specified in the application. If upon the expiry of the said time period the self-regulated organisation of valuers does not submit to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers proof of elimination of the detected non-compliance, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file with an arbitration court an application for exclusion of the self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.A self-regulated organisation of valuers shall be deemed excluded from the unified state register of self-regulated organisations as of the date of entry into force of an arbitration court's decision on exlusion thereof from said register.Valuers who are members of a self-regulated organisation of valuers excluded from the unified state register of self-regulated organisations of valuers shall be entitled to join other self-regulated organisations of valuers.Within three months as of the date of excluding a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers the valuers who are members thereof that have not entered other self-regulated organsations of valuers shall be only entitled to exercise evaluation activity under the contracts made prior to the date of excluding the self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.

Article 24.6. Ensuring Property Liability When Exercising Evaluation ActivityThe losses caused to a client that has made a contract of evaluation or the property damage caused to third persons as a result of using the total value of the market or other cost of an object of evaluation indicated in the report signed by a valuer or valuers shall be subject to compensation in full at the expense of the property of the valuer or valuers who have caused by their actions (failure to act) the losses or property damage when exercising evaluation activity or at the expense of the property of the legal entity with which the valuer has made a labour contract.The legal entity with which a valuer has made a labour contract may state in a contract of

evaluation the terms under which it assumes obligations in respect of additional warranty of the valuer's obligation to compensate for the damages caused to the client that has made the contract of evaluation or for the property damage caused to third persons.For the purpose of ensuring the property liability of members of a self-regulated organisation of valuers towards a client and (or) third persons that have made a contract of evaluation, the self-regulated organisation of valuers shall be obliged to demand of members thereof the use of the following methods of ensuring such liability:making the contract of obligatory insurance of the liability of a valuer provided for by Article 24.7 of this Federal Law, when exercising evaluation activity, under which the insured amount may not be less that three hundred thousand roubles;formation of the compensation fund of the self-regulated organisation of valuers to which each member of the self-regulated organisation of valuers has to make an obligatory contribution in the amount of at least thirty thousand roubles.

Article 24.7. Contract of Obligatory Insurance of Valuer's Liability When Exercising Evaluation ActivityThe object of insurance under a contract of obligatory insurance of valuer's liability when exercising evaluation activity (hereinafter referred to as a contract of obligatory insurance of liability) shall be the property interests connected with the risk of liability of a valuer (insurant) under the obligations which result from causing damage to the client that has made a contract of evaluation and (or) to third persons.As a contingency under a contract of obligatory insurance of liability shall be deemed the fact of causing damage by actions (failure to act) of a valuer established by an effective decision of an arbitration court or recognized by the insurer resulting from the valuer's failure to comply with the requirements of federal evaluation standards, standards and rules for evaluation activity established by the self-regulated organisation of valuers of which the valuer is a member at the time of causing damage.In the event of a contingency, the insurer shall make an insurance payment in the amount of the real damage caused to a client and (or) a third person which is established by an effective decision of an arbitration court but at most in the amount of the insured amount under the contract of obligatory insurance of liability.A contract of obligatory insurance of liability shall be made for a term of at least one year under the condition of compensation for the damage caused within the term of validity of the contract of obligatory insurance of liability subject to the limitation period established by the legislation of the Russian Federation.The insurance premium under a contract of obligatory insurance of liability may be determined by insurers depending on a valuer's record of evaluation activity, number of previous contingencies and other circumstances influencing the degree of the risk of causing damage.A contract of obligatory insurance of liability may provide for a valuer's payment of the insurance premium by installments and the time for paying insurance fees.The date of paying the insurance premium (insurance fee) shall be deemed the date of paying the insurance premium (insurance fee) in cash to the insurer or the date of remitting the insurance premium (insurance fee) to the insurer's settlement account.A contract of obligatory insurance of liability shall enter into force as of the time of an insurant's payment of the first insurance fee, if not otherwise provided for by the legislation of the Russian Federation.Control over obligatory insurance by its members of their liability shall be exercised by a self-regulated organisation of valuers that shall be entitled to establish additional requirements in keeping with the legislation of the Russian Federation for the contracts of obligatory insurance of liability made by members of such self-regulated organisation of valuers.

Article 24.8. The Compensation Fund of a Self-Regulated Organisation of ValuersAs the compensation fund of a self-regulated organisation of valuers (hereinafter referred to as the compensation fund) shall be deemed a separate property which is under the ownership of the self-regulated organisation of valuers and which shall be initially formed using solely monetary funds at the expense of obligatory membership dues.It shall not be allowable to relieve a member of a self-regulated organisation of valuers of the duty to pay fees to the compensation fund, in particular for setting off his claims against the self-regulated organisation of valuers.As a ground for levying execution against the compensation fund shall be deemed the fact of a

contingency under a contract of obligatory insurance of liability established by a decision of an arbitration court or recognised by the insurer.A claim for receiving a compensation payment from the compensation fund may be only made against a self-regulated organisation of valuers in the event coincidence of the following conditions:the funds received under a contract of obligatory insurance of liability are not enough to compensate for the damage caused by a valuer;a valuer has refused to allow the claim of a client or a third person for repair of damage or a client or third person has not received within a reasonable time a reply to the claim made.A claim for repair of damage from the compensation fund may be raised against the self-regulated organisation of valuers, of which a valuer is or was a member at the time of causing the damage.It shall not be allowable to make payments from the compensation fund (including the return to members of a self-regulated organisation of valuers of their dues), except for payments aimed at ensuring the property liability of members of the self-regulated organisation of valuers towards clients or third persons.Execution may not levied against the compensation fund under obligations of a self-regulated organisation of valuers, as well as under obligations of members of a self-regulated organisation of valuers, if such obligations are not connected with the exercise of the activity regulated by it.The rate of a compensation payment from the compensation fund to satisfy a claim or claims of clients or third persons against one valuer in respect of one contingency may not exceed six hundred thousand roubles.

Article 24.9. Terms of, and Procedure for, Placing Assets of the Compensation FundA self-regulated organisation of valuers, in order to place assets of the compensation fund for the purpose of preserving and increasing them, shall make a contract of trust management of such fund with a management company.The management company shall be obliged to commit all necessary actions aimed at preventing failures to comply with requirements for placement of the assets of the compensation fund established by this Federal Law and to make a contract with the specialized depository with which a contract has been made by the self-regulated organisation of valuers.The specialized depository shall exercise control over observance by the management company of the restrictions concerning placement of the compensation fund's assets, of the rules for placing these assets and requirements for their placement established by this Federal Law and the investment declaration adopted by the self-regulated organisation of valuers.The specialized depository shall notify a self-regulated organisation of valuers and the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers of all failures to comply with the requirements for placement of the compensation fund's assets established by this Federal Law.The management company and specialised depository shall be selected on the basis of the outcome of a tender held in the procedure established by internal documents of a self-regulated organisation of valuers.The income derived from placement of the compensation fund's assets shall be used for replenishment of this fund and for covering the outlays connected with ensuring the proper placement such assets.Assets of the compensation fund shall be placed by the management company in compliance with the investment declaration adopted by a self-regulated organisation of valuers subject to the restrictions established by this Article. At least forty per cent of these assets must be invested into state securities of Russian Federation and no more than forty per cent of these assets may be invested into stocks of the Russian issuers established in the form of open joint stock companies which circulate in the organised securities market or into shares of unit investment funds.It shall not be allowable to invest more than 5 per cent of the compensation fund's assets in stocks of the same issuer, or to invest the compensation fund's assets into bills of exchange and securities that do not circulate in the organised securities market and in foreign securities.

Article 24.10. The National Council for Evaluation Activity and Other Associations of Self-Regulated Organisations of ValuersFor the purpose of ensuring the public interest, forming uniform approaches to the exercise of evaluation activity, developing a uniform position of valuers as to the regulation of their activities, coordinating the activities of self-regulated organisations of valuers, as well as for the purpose of interaction of self-regulated organisations of valuers with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies and

consumers of services in the field of evaluation activity, self-regulated organisations of valuers shall form the National Council.The National Council shall be deemed a non-profit organisation established by self-regulated organisations of valuers, which are registered by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers and whose members constitute over fifty per cent of the self-regulated organisations of valuers uniting over fifty per cent of all valuers.A non-profit organisation complying with the requirements of Part Two of this Article shall be subject to registration as the National Council upon the expiry of three days as of the date of submitting the following documents to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers:application for registration as the National Council;properly attested copies of the constituent entities;copies of applications for joining the non-profit organisation of all its members attested by the non-profit organisation.The basic functions of the National Council shall be as follows:discussing matters of state policy in the field of evaluation activity;representing the interests of self-regulated organisations of valuers in federal state power bodies, state power bodies of the constituent entities of the Russian Federation and local self-government bodies;drawing up proposals as to the development of state policy in the field of evaluation activity;drawing up proposals as to the improvement of legal and economic regulation of evaluation activity;protection of the rights and legitimate interests of self-regulated organisations of valuers;development of federal evaluation standards;conducting a preliminary expert examination of normative legal acts of the Russian Federation regulating evaluation activity;considering draft normative legal acts of the Russian Federation regulating evaluation activity and presenting recommendations as to their endorsement by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;considering training programmes of the educational institutions for professional training of specialists in the field of evaluation activity and recommending such programmes for endorsement;developing programmes of professional training of valuers;devising recommendations in respect of the minimum work record of valuers, probation period for persons aspiring to become members of a self-regulated organisation of valuers;establishment of an all-Russia court of arbitration in the field of evaluation activity;Considering applications, petitions and complaints of self-regulated organisations of valuers, consumers of services in the field of evaluation activity and valuers.To exercise the functions established by this Federal Law, a collective managerial body shall be set up within the National Council with the obligatory inclusion therein of one representative from each self-regulated organisation of valuers which is a member of the National Council.Independent experts, consumers of services in the field of evaluation activities, representatives of scientific and pedagogical communities and other persons who are not members or representatives of members of self-regulated organisations of valuers must constitute at least twenty five per cent of members of the collective managerial body of the National Council.The chairman of the collective managerial body of the National Council shall be elected at its first meeting from among its members.Representatives of federal state power bodies, state power bodies of the constituent entities of the Russian Federation and of local selfgovernment bodies may not be the chairman of the collective managerial body of the National Council.A collective executive managerial body shall be formed whose numerical strength and personal composition shall be endorsed by the collective managerial body of the National Council.Persons who are members of the collective executive managerial body of the National Council, as well as employees thereof, shall not be entitled:to establish legal entities engaged in evaluation activity or to be members of managerial bodies of such legal entities, of their branch and dependent companies;to make labour contracts with members of self-regulated organisations of valuers.Self-regulated organisations of valuers shall be entitled to establish unions (associations) in compliance with the legislation of the Russian Federation on non-profit organisations.

Chapter IV. Concluding Provisions

Article 25. Entry into Force of the Present Federal LawThe present Federal Law shall take effect on the day it is officially published.Certificates of education confirming that the holders have received professional training in the field of evaluation activity which were issued before the present Federal Law came into force shall be brought into conformity with the norms of the present Federal Law not later than July 1, 2000.

Article 26. Bringing Normative Legal Acts into Conformity with the Present Federal LawThe President of the Russian Federation is recommended and the Government of the Russian Federation is instructed to bring their normative legal acts into conformity with the present Federal Law.

President of the Russian Federation Boris YeltsinMoscow, the Kremlin

FEDERAL LAWNO. 157-FZ OF JULY 27, 2006ON AMENDING THE FEDERAL LAW ON EVALUATION ACTIVITY IN THE RUSSIANFEDERATION(with the Amendments and Additions of July 13, 2007)

Adopted by the State Duma on July 7, 2006Endorsed by the Federation Council on July 14, 2006

Article 1The following amendments shall be made to Federal Law No. 135-FZ of July 29, 1998 on Evaluation Activity in the Russian Federation (Sobranie Zakonodatelstva Rossiyskoy Federatsii, 1998, No. 31, Article 3813; 2002, No. 12, Article 1093; No. 46, Article 4537; 2003, No. 2, Article 167; 2004, No. 35, Article 3607; 2006, No. 2, Article 172):1) Article 1 shall be stated in the following:"Article 1. Legislation Regulating Evaluation Activity in the Russian FederationEvaluation activity shall be exercised in compliance with the international treaties made by the Russian Federation, this Federal Law, as well as other federal laws and other normative legal acts of the Russian Federation regulating the relations which arise while exercising evaluation activity.";

2) in Part One of Article 3 the word "professional" shall be added after the words "understood to mean a";3) Article 4 shall be stated in the following wording:"Article 4. Subjects of Evaluation ActivityAs subjects of the evaluation activity shall be deemed the natural persons who are members of one of self-regulated organisations of valuers and who have insured their liability in compliance with the requirements of this Federal Law (hereinafter referred to as valuers).A valuer may independently exercise evaluation activity as engaged in private practice, as well as on the basis of a labour contract between a valuer and a legal entity complying with the terms established by Article 15.1 of this Federal Law.";

4) in Article 9:Part One shall be stated in the following wording:"As the ground for evaluation shall be deemed a contract of evaluation of the objects mentioned in Article 5 of this Federal Law which is made by a client with a valuer or with the legal entity with which a valuer has made a labour contract.";Part Two shall be declared invalidated;5) Article 10 shall be stated in the following wording:

"Article 10. Obligatory Requirements for the Contract of EvaluationThe contract of evaluation shall be concluded in a simple written form.The contract of evaluation must contain the following:object of evaluation;type of property cost (evaluation method);amount of monetary remuneration for evaluation;

data on obligatory insurance of the valuer's civil liability in compliance with this Federal Law;name of the self-regulated organization of valuers of which the valuer is a member and location of this organisation;indication of the standards of evaluation activity which are to be applied in evaluation;indication of the extent of, procedure and grounds for, additional liability with respect to the liability, established by the civil legislation and Article 24.6 of this Federal Law, of a valuer and the legal entity with which a valuer has made a labour contract.In the contract of evaluation made by a client and the legal entity must be shown data on the valuer or valuers who are to carry out the evaluation, including the family name, first name and patronymic of the valuer or valuers.The contract of evaluation of both a single object and a number of objects must contain a precise indication of this object or objects, as well a description of this object or objects.In respect of the evaluation of objects possessed by the Russian Federation, the constituent entities of the Russian Federation or municipal formations, the contract of evaluation shall be made on behalf of the client by the person authorized by the owner to make transactions with the objects, if not otherwise established by the legislation of the Russian Federation";

6) in Article 11:Part One shall be declared invalidated;In Part Two the words "on Appraisal of the Object of Evaluation (hereinafter referred to as the Report)" shall be added after the words "The Report;In Paragraph Four of Part Four the words "of his licence to engage in evaluation activity with regard to the type of property in question" shall be replaced by the words "on the valuer's membership in a self-regulated organisation of valuers";Part Seven shall be stated in the following wording:"The Report has to be numbered page by page, stitched and signed by the valuer or valuers who has (have) carried out the evaluation, as well as the personal stamp of the valuer or the stamp of the legal entity, with which the valuer has made a labour contract, has to be affixed thereto.";7) Article 15 shall be stated in the following wording:

"Article 15. Duties of the ValuerThe valuer shall be obligated:to be a member of one of self-regulated organizations;to observe, when conducting evaluation activity, the requirements of the present Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, as well as the standards of, and rules for, evaluation activity endorsed by the self-regulated organisation of which he is a member;to follow the business and professional ethical rules established by the self-regulated organisation of valuers (hereinafter referred to as business and professional ethical rules ) of which he is a member, as well as to pay the membership fees established by such self regulated organisation of valuers;notify the client or the legal entity, which he has made a labour contact with, that he is unable to participate in evaluation where circumstances have arisen which hamper the conduct of the evaluation in an unbiased way;guarantee the safekeeping of the documents received from the client and third parties in the course of evaluation;to provide the client with information on his membership in a self-regulated organisation of valuers;to provide the self-regulated organisation of valuers with information about the legal entity, which he has made a labour contract with, including information about the compliance of such legal entity with the terms established by Article 15.1 of this Federal Law, as well as data on any changes in this information;to present by request of a client the insurance policy and the education certificate proving his professional training in evaluation activity;not to divulge the information that has been received by him from the client in the course of evaluation, except for the instances provided for by the legislation of the Russian Federation;in the cases, provided for by the legislation of the Russian Federation, o issue copies of the reports kept in custody and the information contained therein to law enforcement, judicial and other authorized state bodies upon request thereof;to present on demand of a client an extract from the register of members of the self-regulated organisation of valuers of which he is a member.";

8) Article 15.1 with the following contents shall be added thereto:

"Article 15.1. Duties of the Legal Entity, Which the Valuer Has Made a Labour Contract withThe legal entity which intends to make a contract of evaluation with a client shall be obliged:to have on the staff at least two persons complying with the requirements of Part Two of Article 24 of this Federal Law;to ensure the safekeeping of the documents received from clients and third parties in the course of evaluation;to notify a client of the impossibility of its participation in evaluation as a result of the circumstances impeding the conduct of unbiased evaluation;to present by request of a client the contract of obligatory insurance of the valuer's liability made in compliance with Article 24.7 of this Federal Law;not to divulge the confidential information received from a client in the course of evaluation, except for the cases provided for by the legislation of the Russian Federation;to provide to the self-regulated organisation of valuers, of which the valuer is a member, for the exercise of control over his evaluation activity access to the documents and materials serving as a basis for the evaluation, except for the information constituting a commercial secret of the legal entity or a client, as well as other confidential information;in the cases provided for by the legislation of the Russian Federation to present copies of the reports kept in custody or the information contained therein to law enforcement, judicial and other authorized bodies upon the request thereof.";

9) in Article 16:Part One shall be stated in the following wording:"Appraisal of an object of evaluation may not be effected by a valuer, if he is the founder, shareholder, official or employee of the legal entity being the client, the person who has a property interest towards the object of valuation or is a close relative or relative by marriage of the said persons;";Paragraph Three of Part Two shall be stated in the following wording:"the creditor is a participant (member) or creditor of the legal entity being the client or such legal entity is a creditor or insurer of the valuer.";10) Article 16.1 and 17 shall be declared invalidated;11) Article 18 shall be stated in the following wording:

"Article 18. Regulation of Evaluation Activity and Activity of Self-Regulated Organisations of ValuersThe state regulation of evaluation activity and activity of self-regulated organisations of valuers, as regards supervision and normative and legal regulation, shall be effected by the federal executive bodies authorized by the Government of the Russian Federation (hereinafter referred to as the authorized federal bodies).Evaluation activity shall be regulated by the National Council for Evaluation Activity (hereinafter referred to as the National Council), as regards the development of federal evaluation standards, and by self-regulated organisations of valuers, as regards the development and endorsement of standards and rules for evaluation activity. Control over the exercise by members of a self-regulated organisation of evaluation activity shall be exerted by these organisations;";

Federal Law No. 129-FZ of July 13, 2007 amended Item 12 of Article 1 of this Federal LawSee the Item in the previous wording

12) Article 19 shall be stated in the following wording:

"Article 19. Functions of the Authorized Federal BodiesThe functions of the authorized federal bodies shall be as follows:to develop the state policy in the field of evaluation activity;to effect normative and legal regulation in the field of evaluation activity and to endorse federal evaluation standards;To keep the unified state register of self-regulated organisations of valuers;To exercise supervision over compliance of self-regulated organizations of valuers with the requirements of this Federal Law;to file with court an application for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisation of valuers.";

13) Article 20 shall be stated in the following wording:

"Article 20. Standards of Evaluation ActivityStandards of evaluation activity shall be determined by the requirements for the order of conducting evaluation and exercising evaluation activity.Standards of evaluation activity shall be subdivided into the federal evaluation standards and the standards and rules for evaluation activity.The federal evaluation standards shall be developed by the National Council subject to the international evaluation standards.The developed federal evaluation standards shall be sent by the National Council for approval to the authorized federal body exercising the functions of normative and legal regulation of evaluation activity. The authorised federal body exercising the functions of normative and legal regulation of evaluation activity shall be obliged at latest in sixty working days as of the date of receiving the federal evaluation standards to endorse them or to issue a reasoned refusal to do it in writing.The authorized federal body exercising the functions of normative and legal regulation of evaluation activity shall be entitled to deny endorsement of the federal evaluation standards in the event of their noncompliance with the requirements of the Constitution of the Russian Federation, international treaties made by the Russian Federation and this Federal Law.The endorsed federal evaluation standards shall be subject to publication by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity in the procedure established by the Government of the Russian Federation and shall be placed at the official Internet WEB-site of the federal executive body exercising the functions of normative and legal regulation of evaluation activity.The standards and rules for evaluation activity shall be developed and endorsed by a self-regulated organisation of valuers and may not contradict the federal evaluation standards.";

14) Article 22 shall be stated in the following wording:

"Article 22. Self-Regulated Organization of ValuersAs a self-regulated organisation of valuers shall be deemed a nonprofit organisation established for the purpose of regulation of, and control over, evaluation activity which is included into the unified state register of self-regulated organizations and unites valuers under the conditions of membership therein.The status of a non-profit organisation of valuers shall be acquired by a non-profit organisation in compliance with the regulations of this Article as of the date of its inclusion into the unified state register of self-regulated organisations of valuers. As a ground for inclusion of a nonprofit organisation into the unified state register of self-regulated organisations of valuers shall be deemed the compliance thereof with the following requirements:such organisation's unifying as its members at least 300 natural persons complying with the requirements established by Part Two of Article 24 of this Federal Law;availability of the compensation fund formed by monetary membership dues in the amount established by Part Three of Article 24.6 of this Federal Law;presence of a collective managerial body (council, supervisory board), of functionally specialized bodies and structural subdivisions;presence of standards and rules for evaluation activity endorsed in compliance with the requirements of this Federal Law.Employees of a self-regulated organisation of valuers shall not be entitled to exercise evaluation activity.A self-regulated organisation of valuers shall be obliged to take measures in due time aimed at preventing a conflict of interests between the self-regulated organisation of valuers and members thereof, as well as at the timely settlement of such conflict.A non-profit organisation with the status of a self-regulated organisation of valuers shall be liquidated in compliance with the legislation on non-profit organisations. A representative of the National Council must be included into the liquidation commission of a non-profit organisation that has the status of a self-regulated organisation of valuers.A non-profit organisation with the status of a self-regulated organisation of valuers may not be re-organised.";

15) Article 22.1 with the following contents shall be added thereto:

"Article 22.1. Functions of Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall exercise the following functions:development and endorsement of standards and rules for evaluation activity, business and professional ethical rules;development and endorsement of the rules for, and terms of, admission to the self-regulated organisation of valuers, additional requirements for the order of ensuring property liability of its members when exercising evaluation activity, establishment of the rate of membership dues and of the procedure for paying them;representation of its members' interests in their relations with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, as well as with international professional organisations of valuers;admission and expulsion from a self-regulated organisation of valuers for the reasons provided for by this Federal Law and internal documents of the self-regulated organization of valuers;control over exercise of evaluation activity by its members, as regards their compliance with the requirements of this Federal law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;keeping the register of members of the self-regulated organisation of valuers and providing the information contained in this register to the persons concerned in the procedure established by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;arranging informational and methodological support to its members;exercise of other functions established by this Federal Law.";

16) Article 22.2 with the following contents shall be added thereto:

"Article 22.2. Basic Rights and Duties of a Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be entitled:to represent the interests of its members in their relations with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, as well as with international professional organisations of valuers;to dispute judicially acts of federal executive bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies and actions (omission to act) of these bodies breaching the rights and legitimate interests of all its members or of a part thereof.A self-regulated organisation shall be obliged:to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation;to form the compensation fund to ensure the liability of its members towards consumers of services in the field of evaluation activity and third persons;to exercise control over compliance of its members with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;to apply disciplinary sanctions, provided for by this Federal Law and internal documents of the self-regulated organisation of valuers, in respect of its members;to notify the authorized federal body, exercising the functions of supervision over the activities of self-regulated organizations of valuers, of the instances of its non-compliance with the requirements provided for by Part Three of Article 22 of this Federal Law within ten days as of the time of discovering such non-compliance;to deny admission to the self-regulated organisation of valuers for the reasons, provided for by this Federal Law and internal documents of the self-regulated organisation of valuers, for failures to meet the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules;to keep the register of members of the self-regulated organisation of valuers and to provide the information contained in this register to persons concerned in the procedure established by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;to organize professional re-training of valuers.";

17) Article 22.3 with the following contents shall be added thereto:

"Article 22.3. Disclosure of Information by a Self-Regulated Organisation of ValuersA self-regulated organisation of valuers shall be obliged to place the following at the official Internet WEB-site of the self-regulated organisation of valuers:the constituent documents;standards and rules for evaluation activity, as well as business and professional ethical rules;regulations on the collective managerial body of the self-regulated organisation of valuers, on the structural subdivision thereof, exercising control over evaluation activity of members of the self-regulated organisation of valuers, on the body in charge of considering cases concerning the application of disciplinary sanctions in respect of members of this organisation (hereinafter referred to as the disciplinary committee), on other bodies and structural subdivisions, as well as information about the facts of imposing disciplinary penalties, if any);list of the members of the self-regulated organisation of valuers whose membership therein have been terminated, including the persons who have been expelled from the self-regulated organisation of valuers for failing to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, business and professional ethical rules for the last three years of activities of the self-regulated organisation of valuers;information on non-compliance of the self-regulated organisation of valuers with the requirements established by Part Three of Article 22 of this Federal Law (including information about the date of emergence of the non-compliance of the self-regulated organisation of valuers with the said requirements, about measures taken and (or) planned by the self-regulated organisation of valuers for elimination of such non-compliance);rules for, and terms of, admission to the self-regulated organisation of valuers, rate of membership dues and procedure for paying them, additional requirements for the procedure to ensure property liability of its members for the exercise of evaluation activity; information about the compensation fund thereof, including information about assessment of the compensation fund in monetary terms, about the investment declaration of the compensation fund and facts of levying execution against the compensation fund;information about the management company with which a contract of trust management of the compensation fund has been made (including information about its name, location, licence, as well as information for contacting it);information about the specialized depository with which a depository contract has been made (including information about its name, location, licence and information for contacting it);information about contracts of obligatory insurance of liability of members of the self-regulated organisation of valuers and information about the insurers with which such contracts have been made (including information about their denomination, location, licences and information for contacting them);information about acquisition by officials, or employees of the self-regulated organisation of valuers, or by affiliated persons thereof, of the securities whose issuers or debtors in respect of which are the legal entities with which members of the self-regulated organisation have made labour contracts;Information about the results of inspections of the activities of members of the self-regulated organisation of valuers;Information about the emergence of a conflict of interests between the self-regulated organisation of valuers and members thereof.A self- regulated organisation of valuers shall be obliged to place at the official Internet WEB-site of the self-regulated organisation of valuers all amendments made to the documents, or changes in the information, specified by Part One of this Article at latest on the day following the date when such changes were adopted, took place or became known to the self-regulated organisation of valuers.A self-regulated organisation of valuers shall be obliged to devise and endorse regulations on disclosing the information establishing the following:procedure for submitting reports to the self-regulated organisation of valuers by members thereof and scope of such reports;scope of information about reports of members of the self-regulated organisation of valuers to be published;procedure for supplying the information contained in the register of members of the self-regulated organisation of valuers on demand of citizens and legal entities;other requirements which do not contradict this Article.";

18) Article 23 shall be stated in the following wording:

"Article 23. Procedure for Including a Non-Profit Organisation into the Unified State Register of Self-Regulated Organisations of ValuersA non-profit organisation complying with the requirements of Part Three of Article 22 of this Federal Law shall be entitled to file with the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers an application for inclusion thereof into the unified state register of self-regulated organisations of valuers.The authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall decide on the inclusion of, or on the refusal to include, a non-profit organisation into the unified state register of self-regulated organisation valuers within seven days of the date of submitting the following documents by this non-profit organisation:an application for inclusion thereof into the unified state register of self-regulated organisations of valuers;copies of the constituent documents attested and certified by a notary public;a copy of the certificate of the non-profit organisation's registration with a tax authority attested and certified by a notary public;copies of education certificates of the non-profit organisation's members attested by it that prove their professional training in the field of evaluation activity in compliance with the educational programmes of higher professional education, additional professional education or programmes of professional re-training of specialists in the field of evaluation activity endorsed in the procedure established by this Federal Law;copies of regulations on the collective managerial body, on the structural subdivision exercising control over evaluation activity of members of such organisation and on the disciplinary committee attested by the non-profit organisation;copies of the standards and rules for evaluation activities attested by the non-profit organisation;copies of the certificates attested by the non-profit organisation proving that members thereof do not have previous non-cancelled convictions for economic crimes, as well as for crimes of medium gravity, grave and especially grave crimes;copies of the documents attested by the non-profit organisation proving the establishment of the compensation fund in the amount set by this Federal Law;copies of applications of its members for joining this organisation attested by it;a copy of the register of the non-profit organisation's members attested by it.A decision of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers on the inclusion of, or on the refusal to include, a non-profit organisation in the unified state register of self-regulated organizations of valuers shall be sent in writing to this non-profit organisation within seven days as of the date of adopting the appropriate decision.A decision of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers, or on the refusal to include a non-profit organisation into the unified state register of self-regulated organizations may be taken for the following reasons:the non-profit organisation does not comply with any of the requirements provided for by Part Three of Article 22 of this Federal Law;the non-profit organisation has not presented the documents provided for by Part Two of this Article or has presented the documents containing unreliable information.A decision on the refusal to include a non-profit organisation into the unified state register of self-regulated organisations of valuers may be appealed by this non-profit organisation with an arbitration court.A self-regulated organisation of valuers shall be excluded from the unified state register of self-regulated organizations of valuers by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers, if this organisation has filed an application for exclusion thereof from the said register or in the event of liquidation of a non-profit organisation with the status of a self regulated organisation of valuers.In other cases, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file with an arbitration court an application for excluding a self-regulated organisation of valuers from the unified state register of self-regulated organsations of valuers. The following shall be deemed a ground for applying to an arbitration court:non-compliance of the self-regulated organisation of valuers with one of the requirements provided for by Part Three of Article 22 of this Federal Law detected on the basis of the results of an

inspection;failure of the self-regulated organisation of valuers to comply with the demand to eliminate in due time the violations detected by the authorised federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers and stated in the order thereof.";

19) Article 24 shall be stated in the following wording:

"Article 24. Requirements for Membership in a Self-Regulated Organisation of ValuersA valuer at the same time may be only a member of one self-regulated organisation of valuers complying with the requirements of this Federal Law.To join a self-regulated organisation of valuers a natural person shall submit the following:education certificate proving his professional training in evaluation activity in compliance with the programmes of higher professional education, additional professional education or programmes of professional re-training of specialists in the field of evaluation activity endorsed in the procedure established by this Federal Law;certificate proving the absence of non-cancelled previous convictions for economic crimes, as well as for crimes of medium gravity, grave and especially grave crimes.A self-regulated organisation of valuers, when admitting natural persons thereto, shall be entitled to raise other requirements connected with the exercise of evaluation activity by a valuer and not contravening this Federal Law and other federal laws.The collective managerial body of a self-regulated organisation of valuers shall decide on the compliance of a person with the requirements established by Parts Two and Three of this Article within seven days as of the day of receiving from such person the application and required documents.The person in respect of whom a decision has been rendered on his compliance with the requirements established by Parts Two and Three of this Article shall be deemed admitted a self-regulated organisation of valuers, and data on such person shall be entered to the register of members of the self-regulated organisation of valuers within three days as of the date of presenting by such person a contract of obligatory insurance of his liability complying with the requirements established by Article 24.7 of this Federal Law and of paying the membership dues established by the self-regulated organisation of valuers. Such person shall be issued a document proving his membership in a self-regulated organisation of valuers within ten days as of the date of entering data on him to the register of members of the self-regulated organisation of valuers.The following shall be deemed as a reason for refusing to admit a person to a self-regulated organisation of valuers:non-compliance of the person with the requirements of this Article;non-compliance of the person with the requirements endorsed by the self-regulated organisation of valuers for admission to the self-regulated organisation of valuers;expulsion of the person from other self-regulated organisation of valuers for failing to comply with the requirements of this Federal Law and the normative legal acts of the Russian Federation and federal evaluation standards adopted in compliance with it, if less than three years have passed since the date of expulsion thereof from the self-regulated organisation of valuers.The person who has been denied admission to a self-regulated organisation of valuers shall be entitled to appeal against such denial with an arbitration court.A valuer's membership in a self-regulated organisation of valuers shall be terminated by the collective managerial body of a self-regulated organisation of valuers on the basis of the following:the valuer's application for leaving the self-regulated organisation of valuers;endorsement by the collective managerial body of the self-regulated organisation of valuers of the decision to expel the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.A person in respect of whom it has been decided to terminate his membership in a self-regulated organisation of valuers shall be obliged to notify of the fact of termination of his membership in the self-regulated organisation of valuers and of the impossibility of signing an evaluation report the customer under a contract of evaluation or the legal entity with which he has been made a labour contract.A self-regulated organisation of valuers at latest on the day following the date of adopting by the collective managerial body of the self-regulated organisation of valuers a decision to terminate membership of a valuer in the self-regulated organisation of valuers shall be obliged to place such

decision at the official Internet WEB-site of the self-regulated organisation of valuers, as well as to send copies of such decision:to the person in respect of whom it is decided to terminate his membership in the self-regulated organisation of valuers;to the legal entity with which the person has made a labour contract, if information about the labour contract made has been previously supplied to the self-regulated organisation of valuers;to all self-regulated organizations entered to the unified state register of self-regulated organizations of valuers in the event of endorsing by the collective managerial body of the self-regulated organization of valuers the decision on the expulsion of the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, as well as with federal evaluation standards;to the National Council in the event of endorsing by the collective managerial body of the self-regulated organisation of valuers the decision to expel the valuer from the self-regulated organisation of valuers in connection with his failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.";

20) Articles 24.1-24.10 with the following contents shall be added to Chapter III:

"Article 24.1. Keeping by a Self-Regulated Organisation of Valuers the Register of Members of the Self-Regulated Organisation of ValuersThe composition of the data to be included into the register of members of a self-regulated organisation of valuers in compliance with the requirements of this Federal Law and the procedure for keeping this register by the self-regulated organisation of valuers and for placing the information contained in the register in information systems of general use shall be endorsed by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity.On the basis of the provisions of this Federal Law the information contained in the register of members of a self-regulated organisation of valuers shall be provided on demand of citizens and legal entities in the procedure determined by internal documents of the self-regulated organisation. The time period for providing such information may not exceed seven days as of the day of receiving the appropriate demand.

Article 24.2. Bodies of Self-Regulated Organisation of ValuersA procedure for forming, structure, scope and term of authority of bodies of a self-regulated organisation of valuers, as well as a procedure for decision-making by such bodies shall be established by internal documents of the self-regulated organisation of valuers in compliance with this Federal Law and other federal laws.A general meeting of members of a self-regulated organisation of valuers shall be the supreme managerial body of the self-regulated organisation of valuers in charge of the matters referred to the scope of authority thereof by this Federal Law and other federal laws.A general meeting of members of a self-regulated organisation of valuers shall be called at least once a year in the procedure established by the charter thereof.The settlement of the following issues shall pertain to the scope of exclusive authority of a general meeting of members of a self-regulated organisation of valuers:endorsement of the regulations on the collective managerial body of the self-regulated organisation of valuers, forming of the collective managerial body of the self-regulated organisation of valuers, adoption of decisions on a preschedule termination of the authority of the collective managerial body of the self-regulated organisation of valuers or on preschedule termination of authority of its members;endorsement of the regulations of the self-regulated organisation of valuers on disclosure of information;endorsement of the regulations on the disciplinary committee, establishment of the disciplinary committee, adoption of decisions on a preschedule termination of its authority or on a preschedule termination of authority of its members;endorsement in the procedure and with the periodicity established by the charter, of reports of the collective managerial body of the self-regulated organisation of valuers and of the executive body thereof on the results of financial and economic, as well as of organizational activity, of the self-regulated organisation of valuers;

endorsement of the regulations on membership in the self-regulated organisation of valuers;adoption of decisions on a voluntary liquidation of a non-profit organisation and on appointing the liquidator or the liquidation committee.A procedure for holding general meetings of members of a self-regulated organisation of valuers, procedure for composing the agenda of the meetings and determining the quorum, terms of, and procedure for, voting shall be determined by a self-regulated organisation of valuers independently in its charter.The collective managerial body of a self-regulated organisation of valuers shall include at least seven persons. The following shall pertain to the exclusive authority of a self-regulated organisation of valuers:endorsement of the standards and rules for evaluation activity, as well as of business and professional ethical rules;admission of valuers to the self-regulated organisation of valuers and termination of their membership in the self-regulated organisation of valuers;establishment of the committees provided for by internal documents of the self-regulated organisation of valuers, adoption of decisions on preschedule termination of authority of such committees or on preschedule termination of authority of its members, endorsement of regulations on the structural subdivision exercising control over evaluation activity of members of the self-regulated organisation of valuers and on other committees;endorsement of the investment declaration of the compensation fund;endorsement of regulations on the procedure for exercising control over evaluation activity of members of the self-regulated organisation of valuers;other matters referred by the charter to the exclusive authority of the collective managerial body of the self-regulated organisation of valuers.Persons who are not members of a self-regulated organisation of valuers and (or) affiliated persons thereof may constitute at most 25 per cent of members of the collective managerial body of the self-regulated organisation of valuers.Members of the collective managerial body of a self-regulated organisation of valuers may not be elected to the disciplinary committee thereof.The person exercising the functions of the personal executive body of a self-regulated organisation of valuers, the persons included into the collective executive body of a self-regulated organisation of valuers shall not be entitled:to establish legal entities or be members of managerial bodies of legal entities engaged in evaluation activity, of their branch and dependent companies;to make labour contracts with the legal entities which have made labour contracts with members of a self-regulated organisation of valuers, as well as with branch and dependent companies thereof;to make civil law contracts, including contracts of rendering payable services, under which the customer is a member of the self-regulated organisation of valuers.To ensure its activity, a self-regulated organisation of valuers shall establish the following:the structural subdivision exercising control over evaluation activity of members of the self-regulated organisation of valuers;the disciplinary committee;other bodies and structural subdivisions determined by internal documents of the self-regulated organisation of valuers.

Article 24.3. Procedure for Exercising Control over Evaluation Activity by a Self-Regulated Organisation of ValuersControl over evaluation activity of members of a self-regulated organisation of valuers shall be exercised by the appropriate structural subdivision thereof consisting of employees of the self-regulated organisation of valuers by way of holding planned and extraordinary inspections.The subject of a planned inspection shall be the compliance of members of a self-regulated organisation of valuers with the requirements of this Federal Law, other federal laws and other normative acts of the Russian Federation, federal evaluation standards, standards and rules of evaluation activity, as well as business and professional ethical rules, additional requirements for the procedure for ensuring property liability of valuers when exercising evaluation activity. The duration of a planned inspection may not exceed thirty days.A planned inspection shall be held at least once every three years and at most once a year.As a ground for conducting an extraordinary inspection by a self-regulated organisation of valuers may be a reasoned complaint sent to the self-regulated organisation of valuers against a valuer's failure to comply with the requirements of this Federal Law, other federal laws and other normative

legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules.Internal documents of a self-regulated organisation of valuers may provide for other grounds for conducting an extraordinary inspection.In the course of an extraordinary inspection solely the facts indicated in a complaint or the facts to be inspected for other reasons shall be subject to examination.A valuer shall be obliged to provide required information for holding an inspection on demand of the self-regulated organisation of valuers in the procedure determined by internal documents of the self-regulated organisation of valuers.In the event of detecting any violations, the materials showing the results of the inspection shall be passed over to the disciplinary committee.A self-regulated organisation of valuers, as well as its employees and officials participating in an inspection, shall be held responsible in respect of non-divulgence and non-dissemination of the data obtained in the course of the inspection in compliance with this Federal Law and other federal laws.

Article 24.4. Procedure for Imposing Disciplinary Penalties in Respect of Members of a Self-Regulated Organisation of ValuersThe disciplinary committee shall be obliged to consider actions of members of the self-regulated organisation of valuers and cases of its members' failure to comply with the requirements of this Federal Law, other federal laws and other normative legal acts of the Russian Federation, federal evaluation standards, standards and rules for evaluation activity, as well as business and professional ethical rules, requirements for paying obligatory fees to the self-regulated organisation of valuers and additional requirements for the procedure of ensuring property liability of valuers when exercising evaluation activity.A procedure for considering the said complaints and cases, as well as the contents of the said violations, shall be determined by internal documents of a self-regulated organisation of valuers.When considering complaints against actions of members of a self-regulated organisation of valuers, the disciplinary committee shall be obliged to invite to its sittings the persons who have sent such complaints, as well as the members of the self-regulated organisation of valuers in respect of whom cases on imposing disciplinary penalties are being considered.The disciplinary committee shall be entitled to decide on imposing the following disciplinary penalties:issuance of orders obliging a member of the self-regulated organisation of valuers to eliminate detected violations and establishing the time for elimination of such violations;issuance of a warning to a member of the self-regulated organisation of valuers;imposition of a fine upon a member of the self-regulated organisation of valuers in the amount established by internal documents of the self-regulated organisation of valuers;recommendation to expel a valuer from the self-regulated organisation of valuers to be considered and endorsed by the collective managerial body of the self-regulated organisation of valuers;other measures established by internal documents of the self-regulated organisation of valuers.The decisions provided for by Paragraphs from Two to Four and Six of Part Four of this Article shall enter into force as of the time of their adoption by the disciplinary committee. The decision provided for by Paragraph Five of Part Four of this Article may be adopted by at least 75 per cent of votes of members of the disciplinary committee attending its sitting and shall enter into force as of the time of its endorsement by the collective managerial body of the self-regulated organisation of valuers.A self-regulated organisation of valuers within two working days as of the date of adopting by the disciplinary committee the decision to impose a disciplinary penalty upon a member of the self-regulated organisation of valuers shall send copies of such decision to the member of the self-regulated organisation of valuers and to the person who has filed the complaint in respect of which such decision has been adopted.Decisions of the disciplinary committee may be appealed against by members of a self-regulated organisation of valuers with the collective managerial body of the self-regulated organisation of valuers at the time established by the self-regulated organisation of valuers.The decision of the collective managerial body of a self-regulated organisation of valuers on the endorsement of the recommendation of the disciplinary committee to expel a person from the self-regulated organisation of valuers may be appealed against by the persons expelled from the self-regulated organisation of valuers with an arbitration court within three months as of the date of rendering such decision.The monetary funds received by a self-regulated organisation of valuers as a result of imposition of a fine upon a member of the self-regulated organisation of valuers in compliance with this Article

shall be subject to entering to the compensation fund of the self-regulated organisation of valuers.

Article 24.5. Supervision over the Activities of Self-Regulated Organisations of ValuersSupervision over the activities of self-regulated organizations of valuers shall be exercised by way of holding planned and extraordinary inspections by the authorized federal body exercising the functions of supervision over the activities of self-regulated organizations of valuers.A planned inspection of the activity of a self-regulated organisation of valuers shall be conducted once every two years in compliance with the plan approved by the federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers.The decision to hold an extraordinary inspection of the activities of a self-regulated organisation of valuers shall be rendered by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers on the basis of applications of legal entities, natural persons, federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies, law-enforcement agencies in respect of violating by the self-regulated organisation of valuers or by members thereof this Federal Law, other federal laws and other normative legal acts of the Russian Federation.In the course of an inspection of the activities of a self-regulated organisation of valuers the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall be entitled to request from the specialized depository that has made a depository agreement with the self-regulated organisation of valuers information about the assessment of its compensation fund in monetary terms.The authorized federal body exercising the functions of supervision over the activities of self-regulated organizations of valuers shall notify the self-regulated organisation of valuers in writing of its decision adopted on the basis of the materials based on the results of an inspection at latest in three days as of the date of adopting such decision.In the event of detecting failures to comply with the requirements established by Part Three of Article 22 of this Federal Law, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file an application with an arbitration court for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organizations of valuers.In the event of detecting other violations, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall send to a self-regulated organisation of valuers an order to eliminate the detected violations within a reasonable time.An order of the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers to eliminate detected violations may be appealed against by a self-regulated organisation of valuers with an arbitration court.In the event of failure to follow at the established time an order to eliminate detected violations, the authorised federal body exercising the functions of supervision over the activities of self-regulated organisation of valuers shall file with an arbitration court an application for exclusion of a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.A self-regulated organisation of valuers that has detected its noncompliance with the requirements of Part Three of Article 22 of this Federal Law shall be entitled to file an application in writing with the authorized federal body exercising the functions of supervision over the activities of self-regulated organisation of valuers in respect of the detected non-compliance with a description thereof, indication of the date of its emergence and of the measures aimed at elimination of it which is being taken and (or) planned.Within two months after receiving by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers an application concerning a detected noncompliance, a self-regulated organisation of valuers may not be excluded from the unified state register of self-regulated organisations of valuers for the reason specified in the application. If upon the expiry of the said time period the self-regulated organisation of valuers does not submit to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers the proof of elimination of the detected non-compliance, the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers shall file with an arbitration court an application for exclusion of the self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.A self-regulated organisation of valuers shall be deemed excluded from the unified state register of

self-regulated organizations as of the date of entry into force of an arbitration court's decision on exclusion thereof from the said register.Valuers who are members of a self-regulated organisation of valuers excluded from the unified state register of self-regulated organisations of valuers shall be entitled to enter other self-regulated organisations of valuers.Within three months as of the date of excluding a self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers the valuers who are members thereof that have not entered other self-regulated organisations of valuers shall be only entitled to exercise evaluation activity under the contracts made prior to the date of excluding the self-regulated organisation of valuers from the unified state register of self-regulated organisations of valuers.

Article 24.6. Ensuring Property Liability When Exercising Evaluation ActivityThe losses caused to the client that has made of contract of evaluation or the property damage caused to third persons as a result of using the total value of the market or other cost of an object of evaluation indicated in the report signed by a valuer or valuers shall be subject to compensation in full at the expense of the property of the valuer or valuers who have caused by their actions (omission to act) the losses or property damage when exercising evaluation activity or at the expense of the property of the legal entity with which the valuer has made a labour contract.The legal entity with which a valuer has made a labour contract may state in a contract of evaluation the terms under which it assumes obligations in respect of additional ensuring of the valuer's obligation to compensate for the damages caused to the client that has made the contract of evaluation or for the property damage caused to third persons.For the purpose of ensuring property liability of members of a self-regulated organisation of valuers towards a client and (or) third persons which have made a contract of evaluation, the self-regulated organisation of valuers shall be obliged to demand of members thereof the use of the following types of ensuring such liability:making the contract of obligatory insurance of liability of a valuer provided for by Article 24.7 of this Federal Law, when exercising evaluation activity, under which the amount of insurance money may not be less that three hundred thousand roubles;forming the compensation fund of the self-regulated organisation of valuers whereto each member of the self-regulated organisation of valuers has to make an obligatory contribution in the amount of at least thirty thousand roubles.

Article 24.7. Contract of Obligatory Insurance of Valuer's Liability When Exercising Evaluation ActivityThe object of insurance under a contract of obligatory insurance of valuer's liability when exercising evaluation activity (hereinafter referred to as a contract of obligatory insurance of liability) shall be the property interests connected with the risk of liability of a valuer (insurant) under the obligations which result from causing damage to the client that has made a contract of evaluation and (or) to third persons.As a contingency under a contract of obligatory insurance of liability shall be deemed the fact of causing damage by actions (omission to act) of a valuer established by an effective decision of an arbitration court or recognized by the insurer resulting from the valuer's failure to comply with the requirements of federal evaluation standards, standards and rules for evaluation activity established by the self-regulated organisation of valuers of which the valuer is a member at the time of causing damage.In the event of a contingency, the insurer shall make an insurance payment in the amount of the real damage caused to a client and (or) a third person which is established by an effective decision of an arbitration court but at most in the amount of the insurance money under the contract of obligatory insurance of liability.A contract of obligatory insurance of liability shall be made for a term of at least one year under the condition of compensation for the damage caused within the term of validity of the contract of obligatory insurance of liability subject to the limitation period established by the legislation of the Russian Federation.The insurance tariff under a contract of obligatory insurance of liability may be determined by insurers depending on a valuer's record of evaluation activity, number of previous contingencies and other circumstances influencing the degree of the risk of causing damage.A contract of obligatory insurance of liability may provide for a valuer's payment of the insurance premium by installments and the time for paying insurance fees.As the date of paying the insurance premium (insurance fee) shall be deemed the date of paying the

insurance premium (insurance fee) in cash to the insurer or the date of remitting the insurance premium (insurance fee) to the insurer's settlement account.A contract of obligatory insurance of liability shall enter into force as of the time of an insurant's payment of the first insurance fee, if not otherwise provided for by the legislation of the Russian Federation.Control over obligatory insurance by its members of their liability shall be exercised by a self-regulated organisation of valuers that shall be entitled to establish additional requirements in keeping with the legislation of the Russian Federation for the contracts of obligatory insurance of liability made by members of such self-regulated organisation of valuers.

Article 24.8. The Compensation Fund of a Self-Regulated Organisation of ValuersAs the compensation fund of a self-regulated organisation of valuers (hereinafter referred to as the compensation fund) shall be deemed a separate property which is under the ownership of the self-regulated organisation of valuers and which shall be initially formed using solely monetary funds at the expense of obligatory membership dues.It shall not be allowable to relieve a member of a self-regulated organisation of valuers of the duty to pay fees to the compensation fund, in particular for setting off his claims against the self-regulated organisation of valuers.As a ground for levying execution against the compensation fund shall be deemed the fact of a contingency under a contract of obligatory insurance of liability established by a decision of an arbitration court or recognised by the insurer.A claim for receiving a compensation payment from the compensation fund may be only raised against a self-regulated organisation of valuers in the event coincidence of the following conditions:the funds received under a contract of obligatory insurance of liability are not enough to compensate for the damage caused by a valuer;a valuer has refused to allow the claim of a client or a third person for repair of damage or a client or third person has not received within a reasonable time a reply to the claim raised.A claim for repair of damage from the compensation fund may be raised against the self-regulated organisation of valuers, of which a valuer is or was a member at the time of causing the damage.It shall not be allowable to make payments from the compensation fund (including the return to members of a self-regulated organisation of valuers of their dues), except for payments aimed at ensuring the property liability of members of the self-regulated organisation of valuers towards clients or third persons.Execution may not levied against the compensation fund under obligations of a self-regulated organisation of valuers, as well as under obligations of members of a self-regulated organisation of valuers, if the rise of such obligations is not connected with the exercise of the activity regulated by it.The rate of a compensation payment from the compensation fund to satisfy a claim or claims of clients or third persons against one valuer in respect of one contingency may not exceed six hundred thousand roubles.

Article 24.9. Terms of, and Procedure for, Placing Assets of the Compensation FundA self-regulated organisation of valuers, in order to place assets of the compensation fund for the purpose of preserving and increasing them, shall make with the management company a contract of trust management of such fund.The management company shall be obliged to commit all necessary actions aimed at preventing failures to comply with requirements for placement of assets of the compensation fund established by this Federal Law and to make a contract with the specialized depository with which a contract has been made by the self-regulated organisation of valuers.The specialized depository shall exercise control over observance by the management company of the restrictions concerning placement of the compensation fund's assets, of the rules for placing these assets and requirements for their placement established by this Federal Law and the investment declaration adopted by the self-regulated organisation of valuers.The specialized depository shall notify a self-regulated organization of valuers and the authorized federal body exercising the functions of supervision over the activities of self-regulated organizations of valuers of all failures to comply with the requirements for placement of the compensation fund's assets established by this Federal Law.The management company and specialised depository shall be selected on the basis of the outcome of the tender held in the procedure established by internal documents of a self-regulated organisation of valuers.

The income derived from placement of the compensation fund's assets shall be used for replenishment of this fund and for covering the outlays connected with ensuring proper terms of such assets' placement.Assets of the compensation fund shall be placed by the management company in compliance with the investment declaration adopted by a self-regulated organisation of valuers subject to the restrictions established by this Article. At least forty per cent of these assets must be invested into the state securities of the Russian Federation and no more than forty per cent of these assets may be invested into stocks of the Russian issuers established in the form of open joint stock companies which circulate in the organized securities market or into shares of unit investment funds.It shall not be allowable to invest more than 5 per cent of the compensation fund's assets into stocks of the same issuer, as well as to invest the compensation fund's assets into bills of exchange and securities that do not circulate in the organized securities market and into foreign securities.

Article 24.10. The National Council for Evaluation Activity and Other Associations of Self-Regulated Organisations of ValuersFor the purpose of ensuring public interests, forming uniform approaches to the exercise of evaluation activity, developing a uniform position of valuers as to the regulation of their activities, coordination of activities of self-regulated organisations of valuers, as well as for the purpose of interaction of self-regulated organisations of valuers with federal state power bodies, state power bodies of the constituent entities of the Russian Federation, local self-government bodies and consumers of services in the field of evaluation activity, self-regulated organisations of valuers shall form the National Council.As the National Council shall be deemed a non-profit organisation established by self-regulated organisations of valuers, which are registered by the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers and whose members constitute over fifty per cent of self-regulated organisations of valuers uniting over fifty per cent of all valuers.A non-profit organisation complying with the requirements of Part Two of this Article shall be subject to registration as the National Council upon the expiry of three days as of the date of submitting the following documents to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers:application for registration as the National Council;properly attested copies of the constituent entities;copies of applications for joining the non-profit organisation of all its members attested by the non-profit organization.The basic functions of the National Council shall be as follows:discussing the matters of the state policy in the field of evaluation activity;representing the interests of self-regulated organisations of valuers in federal state power bodies, state power bodies of the constituent entities of the Russian Federation and local self-government bodies;forming proposals as to the development of the state policy in the field of evaluation activity;forming proposals as to the improvement of legal and economic regulation of evaluation activity;protection of the rights and legitimate interests of self-regulated organisations of valuers;development of federal evaluation standards;conducting a preliminary expert examination of normative legal acts of the Russian Federation regulating evaluation activity;considering draft normative legal acts of the Russian Federation regulating evaluation activity and presenting recommendations as to their endorsement by the authorized federal body exercising the functions of normative and legal regulation of evaluation activity;considering training programmes of the educational institutions for professional training of specialists in the field of evaluation activity and recommending such programmes for endorsement;developing programmes of professional training of valuers;devising recommendations in respect of the minimum working record of valuers, probation period for the persons aspiring to become members of a self-regulated organisation of valuers;establishment of an all-Russia court of arbitration in the field of evaluation activity;Considering applications, petitions and complaints of self-regulated organizations of valuers, consumers of services in the field of evaluation activity and valuers.To exercise the functions established by this Federal Law, the collective managerial body shall be set within the National Council with the obligatory inclusion therein of one representative from each self-regulated organisation of valuers which is a member of the National Council.

Independent experts, consumers of services in the field of evaluation activities, representatives of scientific and pedagogical communities and other persons who are not members or representatives of members of self-regulated organisations of valuers must constitute at least twenty five per cent of members of the collective managerial body of the National Council.The chairman of the collective managerial body of the National Council shall be elected at its first meeting from among its members.Representatives of federal state power bodies, state power bodies of the constituent entities of the Russian Federation and of local self-government bodies may not be the chairman of the collective managerial body of the National Council.In the National Council shall be formed the collective executive managerial body whose numerical strength and personal composition shall be endorsed by the collective managerial body of the National Council.The persons who are members of the collective executive managerial body of the National Council, as well as employees thereof, shall not be entitled:to establish legal entities engaged in evaluation activity or to be members of managerial bodies of such legal entities, of their branch and dependent companies;to make labour contracts with members of self-regulated organisations of valuers.Self-regulated organisations of valuers shall be entitled to establish unions (associations) in compliance with the legislation of the Russian Federation on non-profit organizations.".

Federal Law No. 129-FZ of July 13, 2007 amended Article 2 of this Federal Law. The amendments shall cover the legal relationships which have arisen from July 1, 2007See the Article in the previous wording

Article 21. The persons who had on June 30, 2006 the licence for the exercise of evaluation activity shall be entitled to exercise evaluation activity pending January 1, 2008 in compliance with Federal Law No. 135-FZ of July 9, 1998 on Evaluation Activity in the Russian Federation in the wording effective prior to the date of this Federal Law's entry into force. The authorised body that has issued the licence for the exercise of evaluation activity shall do the following in respect of such persons pending January 1, 2008:1) shall control their exercise of evaluation activity in the procedure established by the legislation of the Russian Federation on licencing, as regards licence control;2) where there are violations of the legislation of the Russian Federation on evaluation activity, shall file applications with an arbitration court for termination of the right of exercising evaluation activity established by this Part.2. From July 1, 2008, the non-profit organisation uniting self-regulated organisations of valuers shall be entitled to apply to the authorized federal body exercising the functions of supervision over the activities of self-regulated organisations of valuers for the purpose of registration as the National Council.3. As of the date of registration of the National Council, the development of federal evaluation standards shall be ensured by the authorised federal body exercising the functions of normative and legal regulation of evaluation activity.

Article 3

Article 3 of Federal Law No. 7-FZ of January 5, 2006 on Amending the Federal Law on Joint-Stock Companies and Some Other Legislative Acts of the Russian Federation (Sobranie Zakonodatelstva Rossiyskoy Federatsii, 2006, No. 2, Article 172) shall be declared invalidated.

President of the Russian Federation V. Putin

The Kremlin, MoscowJuly 27, 2006No. 157-FZ