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 302 OF 1996
(July 30)
Official Gazette No. 42,848, of 2 August 1996
Whereby the Agricultural Solidarity Fund is created, the authorizations are granted and other provisions. Summary

Term Notes

ARTICLE 1o. CREATION AND OBJECTIVES. Believe Fund Agricultural Solidarity, as fund special account separate from the resources of the Ministry of Agriculture and Rural Development, whose sole objective is to provide financial support to small and medium agricultural, forestry, aquaculture and fisheries producers, for the care and relief their debts when developing such activities any of the situations which Article 2 of this law refers to arise. Also they are beneficiaries of the support under this Act holders or integrators schemes associative credit or strategic alliance, which have been rediscounted or registered with Finagro or granted generally for the agricultural sector, in relation to the portion of such credits corresponding to integrated or associates that qualify as small or medium producers.
The Ministry of Agriculture and Rural Development may enter into a trust for the administration of the Fund for Agricultural Solidarity and contracts for management or portfolio purchase or granting relief with any entity authorized to effect which it is empowered to buy portfolio establishments, public or private credit and portfolio of Agricultural Guarantee Fund (FAG).
For the purposes of this Act shall be considered as a small producer to those individuals who meet the following conditions:
a) its total assets not exceeding two hundred and fifty minimum monthly wages (250 smlmv) included your spouse or partner (a) permanent, according to trade balance. In the case of users of land reform, the value of the land can not be computable within these total assets;
B) not less than two-thirds (2/3) of their income comes from farming and / or fishing or have at least seventy-five percent (75%) of its assets invested in agriculture, forestry, aquaculture or fisheries sector, the trade balance.
For the purposes of this law that natural or legal person primarily related to the production or marketing of agricultural, forestry, aquaculture or fisheries activities are considered by medium-sized producers that when requesting the support count on total assets not exceeding seven hundred minimum monthly wages (700 smlmv), including your spouse or partner (a) permanent, depending on its trade balance. Effective Notes

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Article 2.
. CRISES. The Fund for Agricultural Solidarity, according to the availability of resources, acquire financial intermediaries portfolio of producers beneficiaries of this law, or intervene as authorized in this law when its Board qualifies the occurrence of some of the following events, nationally or in certain areas, departments, regions or municipalities, or in respect of a particular product or agricultural or fishing activity:
a) a situation of extreme climatic type or a natural disaster resulting in losses mass production;
B) phytosanitary problems or pests affecting general and severely crops or agricultural and fishery products, significantly reducing the quality or volume of production, as long as these phenomena are uncontrollable by the individual action of the producers;
C) Well-known public disorder that seriously affect the production or marketing agricultural and fisheries;
D) severe and sustained income for producers, under the terms regulating the National Government Falls.
PARÁGRAFO. The Board shall establish that the event in question occurred during the production cycle or the marketing period, meaning the period of ninety (90) days following the completion of the process of production days. " Effective Notes

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1. Those from regular resources of the national budget annually will be incorporated into it, including those set out in Article 14, paragraph second, third paragraph, in fine, of Law 223 of 1995, or the half a percentage point sixteen percent (16%) of VAT, to meet other depressed agricultural sectors.
The amount of resources allocated in the national budget will be increased, if possible, in each effect.
2. Proceeds from the recovery of the loan portfolio acquired by the Fund.
3. Internal or external credits or financial mechanism that is developed to obtain resources for the Fund.
4. The resources will provide local authorities.
5. Financial returns that do not correspond to regular resources from the General Budget of the Nation.
6. Donations, contributions and counterparts that give national or international, private or public bodies.
PARÁGRAFO. The resources mentioned in the first paragraph of this article, as coming from those set out in Article 14, paragraph second, third paragraph, in fine, of Law 223 of 1995, will go up to thirty percent (30%) , exclusively, to the repurchase of land made under the terms of this Act.

ARTICLE 4. FUNCTIONS. In furtherance of its object and in relation to agricultural producers and fish beneficiaries of this law, the Fund may perform the following operations in the manner as determined by its Board of Directors, with priority in the use of resources in favor of small producers :
1. Buy whole or in part loans granted by credit institutions as well as the portfolio of the Agricultural Guarantee Fund (FAG), and agree with debtors deadlines and financial conditions of the obligations acquired and the method of payment, for Board which will mark its special conditions of favorability for the benefit of the producer. The purchase of the portfolio is made according to technical evaluation criteria. In the case of sale of portfolio Banco Agrario de Colombia SA, the criteria also must be approved by the Board of Directors of the credit institution.
2. Fully or partially subsidize the financial costs of loans granted by credit institutions.
3. temporarily invest their resources in debt securities issued by the nation, the Central Bank, credit facilities or other institutions supervised by the Financial Superintendency, when liquidity surpluses arise.
4. Perform repurchase land.
5. Buy all or part of non-financial liabilities to agricultural activity and expired on December 31, 2013 to third parties, and agree with debtors deadlines and financial conditions of the obligations acquired and the method of payment for which its Board of Directors indicate special conditions of favorability for the benefit of the producer. The purchase of the portfolio to current standards and technical evaluation criteria and defining the national government will be conducted. Effective Notes

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The 5th ITEM. REPURCHASE OF LAND. Only once for each small farmer and fishing, presented some of the events related in the second article of this Act, the Fund for Agricultural Solidarity will go up to 30% to the acquisition of plots whose ownership and possession are deprived in execution processes, which will be awarded in the terms and under the conditions established by the Board of Directors of the Fund.

ARTICLE 6o. Access to new credit. Producers covered by this Act shall be classified so that they are automatically eligible to receive new loans with any financial institution.

ARTICLE 7. COMPOSITION OF THE BOARD. For decision-making, Agricultural Solidarity Fund shall have a Board composed as follows:
- The Minister of Agriculture and Rural Development, who shall preside.
- The Minister of Finance or his delegate.
- The Director of the National Planning Department or his delegate.
- A representative of organizations of small farmers elected by them.
- A representative organizations of small fish producers, elected by them.

Article 8. PORTFOLIO RECOVERY. Authorize the Board of Directors of the Agricultural Solidarity Fund to regulate all matters relating to the recovery of the acquired portfolio. The Board of Fonsa may determine the amount to be paid by the beneficiaries, deadlines, dead periods and / or grace, and decide on the extension of term or restructuring of obligations, and transfer to beneficiaries of discounts obtained in buying them. Effective Notes

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Article 9. TRANSIENT. Priority Purchase. The obligations overdue and refinanced a day, cut 311 (sic) December 1994, the Caja Agraria and Bancafé, by small agricultural and fishery producers will be purchased in the following amounts and order of priority: || | a) debts whose original capital is less than or equal to five million pesos ($ 5,000,000), the entire principal and interest recorded as accounts receivable;
B) the debts whose original capital exceeds five million pesos ($ 5,000,000) and less than or equal to ten million pesos ($ 10 million), twenty-five percent (25%) of the initial capital and all interest capitalized and recorded as accounts receivable. PARAGRAPH 1.
. Those small coffee producers covered by Law 223 of 1995 not access the benefits enshrined in this Act, with respect to the obligations arising from growing coffee. PARAGRAPH 2.
. It authorizes the Government to develop the necessary financial mechanisms, so that it can provide resources worth one hundred fifty billion pesos ($ 150 million) to run the program established by this article. PARAGRAPH 3.
. To access the benefits of this article, small producers must keep up with debts from 1o.
January 1995. PARÁGRAFO 4o. Caja Agraria shall regulate special incentives for debtors to have their obligations to date.

Article 10. This Law governs from its promulgation.
The President of the honorable Senate, JULIUS CAESAR
Tulena WAR.
The Secretary General of the honorable Senate,
The President of the honorable House of Representatives,
Rodrigo Rivera Salazar.
The Secretary General of the honorable House of Representatives, DIEGO VIVAS
published and execute.
Given in Santa Fe de Bogota, DC, 30 July 1996.

Ernesto Samper Pizano Minister of Finance and Public Credit, José Antonio Ocampo Gaviria
The Minister of Agriculture and Rural Development, Cecilia López Montaño

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