Whereby The Agricultural Insurance Established In Colombia, The National Agricultural Risk Fund Is Created And Other Provisions On Agricultural Credit

Original Language Title: Por la cual se establece el Seguro Agropecuario en Colombia, se crea el Fondo Nacional de Riesgos Agropecuarios y se dictan otras disposiciones en materia de crédito agropecuario

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ACT

(August 24)

Official Journal No. 41.003 of 24 August 1993

For which the Agricultural Insurance is established in Colombia, the National Agricultural Risk Fund is created and other provisions on agricultural credit are made.

THE CONGRESS OF COLOMBIA,

DECRETA:

ARTICLE 1o. THE ESTABLISHMENT OF AGRICULTURAL INSURANCE. Establish agricultural insurance in Colombia as an instrument to encourage and protect food production, seek the economic improvement of the rural sector, promoting the The economic and social aspects of the agricultural sector and as a strategy for contributing to the country's overall development.

The purpose of the insurance is the protection of agricultural investments financed by credit resources from the national agricultural credit system or with the producer's own resources, providing for the production needs and national and international marketing and primary economic sector development.

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ARTICLE 2o. ENTITIES EMPOWERED TO ISSUE POLICIES.

1. Public and private insurance institutions, as well as other entities monitored by the Banking Superintendency, which are empowered by the law to carry out insurance activities, may assume the risks of insurance under the conditions laid down in the establish the National Government, through the direct issuance of the policies or through reinsurance agreements or co-insurance agreements.

2. The Industrial and Mining Agrarian Credit Fund, the mixed-economy companies and the industrial and commercial enterprises of the State which are intended to carry out insurance operations, may at all times issue insurance policies. However, in particular, it will be necessary to do so when there are no private entities that issue such policies, provided that the risks covered do not exceed the scope of this Law.

3. 74 of Law 1450 of 2011. The new text is as follows: > Foreign insurance companies directly or through authorized intermediaries. The Financial Superintendence of Colombia may establish the obligation of registration of these companies or their intermediaries.

PARAGRAFO. The rates of policies issued in the development of the provisions of this Article shall comply with the technical requirements laid down in Article 3.1.3.0.3the Organic Status of the Financial System or the rules that replace it or add it.

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ARTICLE 3o. COVERAGE OF AGRICULTURAL INSURANCE. 75 of Law 1450 of 2011. The new text is as follows: > Agricultural insurance for damages caused by natural and biological risks outside the control of the taker, insured or beneficiary that affects the agricultural activities. The Ministry of Agriculture and Rural Development shall regulate the application of this rule.

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ARTICLE 4. AGRICULTURAL INSURANCE. 24 of Law 1151 of 2007. The new text is as follows: > The National Government, through the National Agricultural Credit Commission, will establish agricultural insurance according to the following guidelines:

(a) The calculation of the agricultural insurance premium will be carried out taking into account the agricultural risk maps (probability of occurrence or recurrence of the events and vulnerability of the crops), actuarial calculations and studies technicians to be drawn up for the purpose;

b) Insurance will be implemented progressively, according to productions, regions and risks;

(c) Agricultural insurance shall include deductibles according to the insurance mode, the production class and the insured risks, which shall be compulsorily assumed by the insured person;

(d) The National Agricultural Credit Commission will be able to point out the events in which credits to the agricultural sector should cover the coverage of agricultural insurance;

e) The insurance shall cover the total of the investments per unit of production financed with credit resources or with own resources of the producer in agricultural activities. The above, without prejudice to the deductibles that the law admits and that the Financial Superintendence avale.

PARAGRAFO. The National Government will set the rules for insurance entities to perform the underwriting and hedging functions of the risks referred to in the law within six months.

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ARTICLE 5o. REINSURANCE PROGRAMMES. The Industrial and Mining Agricultural Credit Fund, mixed-economy companies and industrial and commercial enterprises of the State which are the subject of insurance and reinsurance operations may establish programmes (a) reinsurance to offer agricultural insurance in accordance with the guidelines determined by the National Government for its development.

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ARTICLE 6o. OF THE NATIONAL AGRICULTURAL RISK FUND. 20 of Law 812 of 2003. The new text is as follows: > Create the National Agricultural Risk Fund which will have the treatment of Fondo-Account administered by the Fund for the Financing of the Agricultural Sector, Finagro, or who does its own times, without people legal or personnel plant.

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ARTICLE 7o. OBJECT OF THE BACKGROUND.

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ARTICLE 8o. RESOURCES OF THE NATIONAL AGRICULTURAL RISK FUND.

1. Contributions from the National Budget.

2. A percentage of the resources from the premiums paid in agricultural insurance referred to in this Law, determined periodically by the National Government, and without exceeding 20% of the net value of the premiums.

3. A percentage of the profits of the National Government in the mixed economy companies and the industrial and commercial enterprises of the State, in accordance with the regulations issued by the National Government.

4. The National Agricultural Risk Fund utilities.

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ARTICLE 9o. CREDIT LINES. The National Government and FINAGRO will facilitate the access of small agricultural insurance users to special credit lines for reforestation and land adaptation, in soft conditions, according to rules to be issued by the National Agricultural Credit Commission.

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ARTICLE 10. OBJECT OF THE AGRICULTURAL GUARANTEE FUND. Without prejudice to the provisions of Article 28 of Law 16 of 1990, the Agricultural Guarantee Fund will be able to support medium-and long-term loans for large and medium-sized producers, for regions, products, and in the economic conditions that the National Agricultural Credit Commission determines for this purpose, as stipulated by the article 1o. of Law 34 of 1993.

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ARTICLE 11. ADDITIONAL RESOURCES FOR THE AGRICULTURAL GUARANTEE FUND. In addition to the sources of resources provided for in Article 30 of Law 16 of 1990, the Agricultural Guarantee Fund of Guarantees will be able to count on resources from donations and contributions. public and private, national or international, in order to ensure compliance with the purposes outlined in the law of its creation and in this Law.

PARAGRAFO. The number 3o. Article 30 of Law 16 of 1990 will thus be:

" 3. Not less than 25% of the gross profit that in each annual financial year Finagro. The percentage will be defined annually by the Finagro board. "

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ARTICLE 12. FUND CAPITAL FOR AGRICULTURAL SECTOR FINANCING. Article 9 (1), paragraph 1. Law 16 of 1990 will thus remain:

" Paragraph 1o. The contributions of the Nation will not be less than fifty-one percent (51%) of the paid capital of Finagro. "

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ARTICLE 13. NATIONAL AGRICULTURAL CREDIT COMMISSION. Additional Article 5o. of Law 16 of 1990, as follows:

" Paragraph 3o. Only the Director of the National Planning Department may delegate his assistance to the National Agricultural Credit Commission. Such delegation may be held only in the Head of the Agricultural Studies Unit. "

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ARTICLE 14. RESOURCES OF THE TECHNICAL ASSISTANCE FUND FOR SMALL FARMERS AND RANCHERS. Repealed Article 21, literal b) of Law 5a. of 1973.

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ARTICLE 15. CONTROL OF INVESTMENTS IN AGRICULTURAL CREDITS. Article 37 of Law 16 of 1990 will thus be:

" The control of investments in agricultural credits will be subject to the regulations that the National Agricultural Credit Commission will determine for this purpose. finance the provision of the technical assistance service in agricultural credits ".

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ARTICLE 16. " For the effective development of its operations and to strengthen its capacity to serve the agricultural sector, the Agrarian, Industrial and Mining Credit Fund will be sufficiently capitalized by the National Government. For the purpose and in the development of the provisions of article 17 of Law 51 of 1990, the capitalizations ordered by the Nation in the Fund may be fulfilled by the contribution of actions of property of the Nation in other financial institutions, (a) the value of the

In any case, in order to facilitate the institution's soon-to-be-restored assets, the Nation will be able to assume all or part of the pension liability in charge of the Fund while the process of its financial rehabilitation is developed.

PARAGRAFO. The obligations assumed by the National Government under this Article may be included in securities issued in favour of the Fund, the terms and conditions of which shall be indicated by the National Government.

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ARTICLE 17. This Law governs from the date of its publication and repeals any provisions that are contrary to it.

The President of the Honorable Senate of the Republic,

TITO EDMUNDO RUEDA GUARIN.

The Secretary General of the Honorable Senate of the Republic,

PEDRO PUMAREJO VEGA.

The President of the Honorable House of Representatives,

CESAR PEREZ GARCIA.

The Secretary of the Honorable House of Representatives,

DIEGO VIVAS TAFUR.

Republic of Colombia-National Government

Publish and execute.

Dada en Santafe de Bogota, D.C., a los twenty-four (24) days of the month of

August of a thousand nine hundred and ninety-three (1993).

CESAR GAVIRIA TRUJILLO

The Minister of Finance and Public Credit,

RUDOLF HOMMES RODRIGUEZ.

The Minister of Agriculture,

JOSE ANTONIO OCAMPO GAVIRIA.

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