Whereby The Agricultural Solidarity Fund Is Created, The Authorizations Are Granted And Other Provisions

Original Language Title: Por la cual se crea el Fondo de Solidaridad Agropecuario, se conceden unas autorizaciones y se dictan otras disposiciones

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ACT

(July 30)

Official Journal No. 42,848 of 2 August 1996

For which the Agricultural Solidarity Fund is created, authorizations are granted and other provisions are issued.

Vigency Notes Summary

COLOMBIA CONGRESS

DECRETA:

ARTICLE 1o. CREATION AND OBJECTIVES. 11 of Law 1731 of 2014. The new text is as follows: > Create the Agricultural Solidarity Fund, as a special fund separate from the resources of the Ministry of Agriculture and Rural Development, whose exclusive objective is to provide economic support to the small and medium-sized agricultural, forestry, aquaculture and fisheries producers, for the attention and relief of their debts, when in the course of these activities, any of the situations referred to in Article 2o of this law. The holders or integrators of associative credit schemes or strategic alliance schemes, which have been rediscounted or registered with Finagro or granted in general for the sector, will also be beneficiaries of the support provided for in this law. This appropriation is intended to cover the amount of the appropriations entered in the budget for the period referred to in Article 1 (1).

The Ministry of Agriculture and Rural Development will be able to conclude a contract of loyalty for the administration of the resources of the Agricultural Solidarity Fund, as well as contracts for the administration or purchase of In addition, it will be able to purchase a portfolio of credit institutions, public or private, as well as the portfolio of the Agricultural Guarantee Fund (FAG).

For the purposes of this law, natural persons who comply with the following conditions shall be considered as a small producer:

(a) That your total assets do not exceed two hundred and fifty monthly minimum statutory wages (250 smlmv), including those of your permanent spouse or partner (a), according to commercial balance. In the case of land reform users, the value of land will not be computable within these total assets;

b) That not less than two thirds (2/ 3) parts of their income come from agricultural and/or fishing activity or that they have at least seventy-five percent (75%) of their assets invested in the agricultural, forestry, aquaculture or fisheries, according to the trade balance.

For the purposes of this law, a natural or legal person shall be considered to be a natural or legal person principally engaged in activities related to the production or marketing of the agricultural, forestry, aquaculture, or fishing, which at the time of applying for support has total assets that do not exceed the seven hundred monthly legal minimum wages in force (700 smlmv), including those of a permanent spouse or partner (a), according to its commercial balance.

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ARTICLE 2o. CRISIS SITUATIONS. 12 of Law 1731 of 2014. The new text is as follows: > The Agricultural Solidarity Fund, in accordance with its availability of resources, will acquire to the financial intermediaries the portfolio of the producers benefiting from this law, or will intervene in the authorized form in this law, when its Board of Directors qualifies the occurrence of some of the following events, at national level, or in certain areas, departments, regions or municipalities, or with respect to a particular agricultural product or activity; or fishing:

(a) A situation of extreme weather or a natural disaster resulting in massive production losses;

(b) Plant health problems or pests that affect crops or agricultural and fishery products in a general and severe manner, significantly reducing the quality or volume of production, provided these phenomena are uncontrollable by the individual action of the producers;

(c) Notary changes in public order that seriously affect agricultural and fisheries production or marketing;

d) Severe and sustained revenue for producers, in terms of the national government.

PARAGRAFO. The Board of Directors must establish that the event in question occurred during the production cycle or the marketing period, understanding for this period of ninety (90) days following the termination of the production process ".

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ARTICLE 3o. FUND RESOURCES. They will be as follows:

1. Those deriving from the ordinary resources of the National Budget that will be incorporated annually into this one, including those set out in Article 14, number two, third indent, in fine, of Law 223 of 1995, or half a percentage point of the 16% (16%) of VAT, to cater for the other depressed agricultural sectors.

The amount of resources allocated in the National Budget will be increased, as far as possible, in each currency.

2. The resources arising from the recovery of the credit portfolio acquired by the Fund.

3. Internal or external credits or any financial mechanism that is developed to obtain resources for the Fund.

4. The resources to be provided by the territorial entities.

5. Financial returns that do not correspond to those from the ordinary resources of the General Budget of the Nation.

6. Donations, contributions and compensatory payments granted to national or international organizations, private or public.

PARAGRAFO. The resources referred to in the first paragraph of this Article, as soon as they come from those laid down in Article 14, number two, third indent, in fine, of Law 223 of 1995, shall be used up to Thirty percent (30%), exclusively, to the repurchase of land made in the terms of this Law.

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ARTICLE 4. FUNTIONS. 13 of Law 1731 of 2014. The new text is as follows: > In the development of its object and in relation to the agricultural and fishery producers benefiting from this law, the Fund will be able to carry out the following operations in the form as determined by its Board of Directors, with priority in the use of resources in favour of small producers:

1. Buy in whole or in part credits from the credit institutions, as well as the portfolio of the Agricultural Guarantee Fund (FAG), and agree with the debtors the deadlines and financial conditions of the obligations that it acquires, thus as the form of payment, for which its Board of Directors will point out special conditions of favorability for the benefit of the producer. The purchase of the portfolio shall be made on the basis of technical valuation criteria. In the case of the sale of the Banco Agrario de Colombia S. A., the criteria must also be approved by the Board of Directors of the said credit establishment.

2. To subsidize all or part of the financial costs of the credits granted by the credit institutions.

3. To temporarily invest its resources in debt securities issued by the nation, the Bank of the Republic, credit institutions or other institutions monitored by the Financial Superintendency, when cash surpluses are present.

4. Carry out repurchases of land.

5. To purchase in whole or in part non-financial liabilities for agricultural and agricultural activity and due to third parties on 31 December 2013, and to agree with the debtors on the terms and conditions of the obligations it acquires, as well as the form of payment, for which its Board of Directors will point out special conditions of favorability for the benefit of the producer. The purchase of the portfolio shall be carried out in accordance with the current rules and the technical and valuation criteria defined by the National Government.

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ARTICLE 5o. LAND REPURCHASE. For one time only in respect of each small agricultural and fishing producer, when any of the events related to the article second of this Law, the resources of the Fund of Agricultural Solidarity will be spent up to 30% on the acquisition of the plots of whose domain and possession have been private in execution processes, which will be awarded to them in the terms and under the conditions established by the Board. Fund Directive.

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ARTICLE 6o. ACCESS TO NEW CREDITS. The producers who are beneficiaries of this Law will be classified in such a way that they are automatically entitled to receive new credits with any financial institution.

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ARTICLE 7o. COMPOSITION OF THE BOARD. For decision-making, the Agricultural Solidarity Fund will have an integrated Board of Directors:

-The Minister of Agriculture and Rural Development, who will chair her.

-The Minister of Finance and Public Credit or his delegate.

-The Director of the National Planning Department or its delegate.

-A representative of the organizations of small agricultural producers, chosen by them.

-A representative of the organizations of small fishing producers, chosen by them.

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ARTICLE 8o. PORTFOLIO RECOVERY. 14 of Law 1731 of 2014. The new text is as follows: > Authorize the Board of the Agricultural Solidarity Fund to regulate everything concerning the recovery of the acquired portfolio. The Board of Directors of the Fonsa will be able to determine the value to be paid by the beneficiaries, the periods, periods of death and/or grace, and decide on the extensions of the term or restructurings of the obligations, and the transfer to the beneficiaries of the discounts obtained on the purchase of the same.

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ARTICLE 9o. TRANSIENT. Purchase Prelate. The obligations due and refinanced per day, with a cut to the 311 (sic) of December 1994, in the Agraria and Bancafé, in charge of the small agricultural and fishing producers, will be acquired in the following amounts and order of precedence:

(a) The debts owed whose original capital is less than or equal to five million pesos ($5,000,000), the entire capital and interest accounted for as receivables;

b) The debts incurred in the original capital of more than 5 million pesos ($5,000,000) and less than or equal to 10 million pesos ($10,000,000), 25% (25%) of the initial capital and all interest capitalised and those accounted for as receivables.

PARAGRAFO 1o. Those small coffee producers covered by Law 223 of 1995 will not access the benefits enshrined in this Law in respect of obligations originated in the cultivation of coffee.

PARAGRAFO 2o. The National Government is authorized to develop the necessary financial mechanisms, so that it can provide resources worth a hundred and fifty billion pesos ($150,000,000) to implement the the programme set out in this Article.

PARAGRAFO 3o. To be able to access the benefits of this article, small producers must be up to date with debts incurred from 1o. of January 1995.

PARAGRAFO 4o. The Agrarian Fund will regulate special stimuli for debtors who have their obligations per day.

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ARTICLE 10. This Law governs from its enactment.

The President of the honorable Senate of the Republic,

JULIO CESAR GUERRA.

The Secretary General of the honorable Senate of the Republic,

PEDRO PUMAREJO VEGA.

The President of the honorable House of Representatives,

RODRIGO RIVERA SALAZAR.

The Secretary General of the honorable House of Representatives,

DIEGO VIVAS TAFUR.

COLOMBIA-NATIONAL GOVERNMENT

Publish and execute.

Dada en Santa Fe de Bogota, D.C., 30 July 1996.

ERNESTO SAMPER PIZANO

The Minister of Finance and Public Credit,

JOSE ANTONIO OCAMPO GAVIRIA.

The Minister of Agriculture and Rural Development,

CECILIA LOPEZ MONTANO

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