Article 122. Accepting, registration and accounting of legal obligations by budget organizations and recipients of budget funds

Legal obligations are accepted by budget organizations and recipients of budget funds and registered by treasury units as per the limits of budgetary allocations based on economic classification codes.

Legal obligations subject to execution at the expense of extra-budgetary funds of budget organizations are received into accounting records by treasury units.

Contracts under budgetary allocations of budget organizations and recipients of budget funds with suppliers of goods (works, services) and modifications thereof enter into force after their registration with treasury units.

Budget organizations and recipients of budget funds submit documents confirming the creation of legal obligations for registration with treasury units no later than December 25 of current financial year.

Contracts of budget organizations and recipients of budget funds concluded for the supply of goods (works, services) provide for an advance payment of 15 percent, except for cases specified by the Cabinet of Ministers of the Republic of Uzbekistan.

Contracts of budget organizations and recipients of budget funds on import of goods (works, services) and modifications thereof are registered by treasury units after appropriate examination and registration of these contracts with authorized bodies in the manner prescribed by law. Whereby, amounts specified in the contracts are accounted for by treasury units in the national currency of the Republic of Uzbekistan.

Legal obligations under first and second groups of expenditures of budget organizations and recipients of budget funds are registered by treasury units in the form of requests.

Contracts of budget organizations and recipients of budget funds with suppliers of goods (works, services) must be concluded with validity periods within the current financial year, with the exception of capital investment contracts and cases provided for by legislation, the validity period of which may be several years. Upon expiry of a contract, legal obligations for the supply of goods (work, services) by the supplier (contractor) are terminated, unless an additional agreement on its extension has been concluded.

Legal commitment limit deriving from budget allocations is primarily encumbered by the amount due at the beginning of the financial year under the relevant items, payable from the budget allocations and arising from contracts registered with treasury units.