ARTICLE I
      For the purpose of developing and increasing the exports of the country by means of covering the export credits and overseas investments for the export of goods and services; and for providing the necessary facilities and supports for the exporters of goods and services for securing their receivables from foreign buyers against the commercial and political risks not usually insured by commercial insurance companies ,“EXPORT GUARANTEE FUND OF IRAN” hereinafter called as the “FUND” is separated from, the Export Development Center of Iran (now under the name of Trade Promotion Organization of Iran) and shall be administered according to the provisions and regulations of the present Act.

ARTICLE 2
     The “FUND” has independent legal, financial and administrative entity and shall be governed as a state–owned private Joint Stock Company under the supervision of the Ministry of Mines Trade and Industry, and based on the this Act and the Company’s Articles of Association, the documents which shall receive the approval of the Government Cabinet upon the proposal of the Minister of Mine, Industry and Trade.  Moreover for unanticipated issues if any, the governing law of the Fund shall be subject to the Commercial Act. The Fund shall only be included in or subject to the laws and general regulations of the companies and institutions owned or affiliated to the government if expressly referred thereto.

N.B >>
The common employment regulations of the insurance companies and Central Insurance of Iran and the modifications thereto shall be applicable to the FUND. The amendments required by the “FUND” shall be exercised when proposed by the Ministry of Mines, Industry and Trade and approved by the Government Cabinet.

ARTICLE 3
   The authorized capital of the “FUND” is one hunderd billion (100,000,000,000) Rials divided by one hundred thousand registered shares each with the value of one million (1,000,000 Rials, all of which owned by the Government. Increase and decrease of the Fund’s capital shall be subject to the provisions of the articles of association.

ARTICLE 4
   The “FUND” consists of the following pivotal decision making bodies whose powers and duties shall be specified in the Articles of Association:

A) GENERAL ASSEMBLY:
The members of the General Assembly shall be:
I. Minister of Mine, Industry and Trade who acts as the president of the general Assembly,
2. Minister of Finance and Economic Affairs,
3. Minister of Foreign Affairs,
4. President of the Plan and Budget Organization,
5. The Top President of the Central Bank of the Islamic Republic of Iran.
6. The President of Iran Export Promotion Center (Trade Promotion Organization)
7. Two members of the Parliament as supervisor, nominated by the said Parliament elected from professional committees like the Committee of Commerce and Distributions or the Committee of economic and finance or the Committee of Cooperation.
The “FUND managing Director (CEO) shall participate in the General Assembly meetings as the secretary without the right of voting.

B) Board of Directors and CEO
The CEO (Managing Director) and members of the Board of Directors, consist of five people as proposed by the Minister of Mine, Industry and Trade and approved by the Fund’s General Assembly who shall be appointed for a period of five years. The CEO (Managing Director) can be the Chairman of the Board as well.
The Minister of Mine, Industry and Trade is in the position to dismiss the CEO (Managing Director).

C) Inspector or Legal Inspectors:
The "FUND" shall have one or two principal Inspectors and also one or two alternative Inspectors appointed by the General Assembly for a period of one year.
    Note.>>The Directors and Inspectors may be reappointed.


ARTICLE 5
    The Credit Guarantees or other insurance covers of the “FUND” as specified in the related bye-laws shall include:
   A)   The trade receivables of the Iranian exporters of goods and services from the foreign buyers which are not paid for on the due date based on the following reasons provided that the payment default of the buyer has NOT occurred as a result of non-performing the commitments by the Iranian exporter:
1.  The foreign buyer’s non acceptance of the goods exported or services rendered.
2. Nonpayment or any instance of payment default of the price of goods/services on the maturity date.
3.  Financial failure of the buyer as the result of bankruptcy, insolvency, suspension of activities or undergoing liquidation process.
4.  The occurrence or sudden outbreak of war or war status.
5.  Deterioration and / or breaking up of bilateral relations or political severity between Iran and the buyer’s country, as the result of which, the Iranian exporter would be unable to collect its receivables from the foreign buyer on the due date.
6.  Imposition of the economic policies which would result in the confiscation or block of the exporter receivables.
7.  Enforcement of import limitations or foreign exchange restrictions in the foreign buyer’s country.
8. Expropriation of the buyer’s possessions or any act of confiscation of the buyer as a result of some general nationalization or confiscation of properties in the destination country which would in turn lead to inability of the Iranian exporter to collect its receivables for the counter party.
9.  Other risks beyond the control of the Iranian exporter and the foreign buyer, which at the discretion of the Fund’s Board of Directors result in non-collection of the exporter’s trade receivables.

2. The banks or other facilities allocated to the Iranian exporters for the export of goods or services.
    
3. Other issues which at the discretion of the Government Cabinet is considered to be essential and useful for the development of export.

ARTICLE 6
After the claims ascertainment and claims payment process the “FUND” is obliged to take legal actions to make effective recoveries and endeavor to claim its rights and collect its receivables form the claims compensated for the abovementioned covers caused by the factors and covered provided in Articles 5.

ARTICLE 7
     The “FUND” shall receive a premium or commission for the rendered services. The amount of the premium or commission shall be determined by the proposal of the General Assembly and approval of the Government Cabinet.
Note.1->> The government should collect one present (1%) of the CIF value of the goods imported from all private importers and submit it the “FUND” to be deposited in a contingency reserve account.
  Note.2->>Balance amounts of the contingency reserve of each year shall be allocated for the increase of the contingency reserve of the Fund (as paid-up capital). How to utilize the contingency reserve shall be regulated according to the bye-laws and regulations to be proposed by the General Assembly and approved by the Government Cabinet.
  Note.3->>Annual net profit of the “FUND” shall be transferred to the contingency reserve after the deduction of all costs, underwriting and statutory reserves, tax and other legal deductions.
  
  NB.4->> If the incomes of the “FUND” fail to meet the payment of claims and provide cover for underwriting statutory reserves, the deficit shall be included in the total annual budget of the country and paid directly to the account of the “FUND”. The amount and calculation methods of the calculation of underwriting and provisionary reserves shall he determined and decided upon by the General Assembly.

ARTICLE 8
     Registration fee of mortgaged documents and properties related to the FUND Shall be point three per thousand (0.3/1000).
  This act consists of 8 Articles and six notes and was ratified in the public meeting of the Islamic Parliament of Iran on Sunday dated 15/7/1375 (October 6, 1996) and verified by the Guardian council on 29/711575 (October20, 1996).