Act 676 2001

Original Language Title: LEY 676 de 2001

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LAW 676 2001
(August 3)
Official Gazette No. 44509 of August 4, 2001

Through which the Laws 363 of 1997 and 510 of 1999 are amended and certain provisions on the rediscount credit operations are issued to the Fund for Financing the Agricultural Sector, Finagro, and the granting of incentive livestock capitalization. Summary

Term Notes

ARTICLE 1o. From the effective date of this Act, the Livestock Fund may carry out operations rediscount credit operations to the Fund for Financing the Agricultural Sector, Finagro.
For Cattlemen Funds may make rediscount operations credit operations to the Fund for Financing the Agricultural Sector, Finagro must have when operating a liquid Heritage less than twelve thousand (12,000) wages current minimum legal monthly (smlmv), and a minimum of six thousand (6,000) heads of cattle and / or buffalo. Both the liquid Heritage as the number of heads of cattle and / or buffalo, should properly be certified by the Auditor of the Livestock Fund, subject to liquid assets remediated to be accredited to operate in accordance with the regulations for effect issued by the Government. PARAGRAPH 1.
. Certification Auditor in terms liquid Heritage and the number of head of cattle and / or buffalo, the must issue within the first five (5) working days of May each year, and is valid until 30 April next year immediately. The certificate issued by the Auditor, will be based on the financial statements approved by the General Assembly of Shareholders, with cutting at December previous year 31, it being understood that the 12,000 minimum monthly wages are those in effect at time accounting closing of the financial statements. PARAGRAPH 2.
. The minimum amount of liquid assets referred to in this article must be met permanently by the Funds Cattlemen running. For this purpose the minimum liquid Heritage operating result of the sum of the following equity accounts: Capital Subscribed and Paid, Capital Guarantee, Reservations, Surplus Prima in capital, Retained earnings from previous years Revaluation of Assets and Surplus valuations, having to deduct the accumulated losses. PARAGRAPH 3.
. Cattlemen Funds to be established after the effective date of this law, to carry out operations rediscount credit operations to Finagro must meet the requirements of current legislation, according to the regulations for the purpose by the government National.
PARÁGRAFO 4o. Cattlemen Funds may be merged in order to meet the requirements of this law, to carry out operations rediscount credit operations to Finagro.
Article 2.
. Cattlemen funds that meet the requirements set out in Article 1o. of this law, they should be organized in the terms ordered by the current legislation, and meet the requirements established by the National Commission on Agricultural Credit (CNCA) for the operation of rediscount. They are subject to inspection, control and surveillance of the Banking Superintendency, from the effective date of this law.

ARTICLE 3. Finagro provide Cattlemen Funds resources under rediscounted loans through current bank account that has established the Livestock Fund in a Commercial Bank. Through bank account, Finagro collect the corresponding maturities of principal and interest and other financial expenses, rediscounting loans for operations to finance the activities of breeding value. For this event, the Cattlemen Funds do not require any collateral.
In accordance with the above, Finagro may not require the opening of current account in the Bank of the Republic, to funds that perform operations Cattlemen rediscount credit. PARAGRAPH 1.
. Cattlemen funds to start operations rediscount, must register with Finagro accompanying the application form with a recent Certificate of Incorporation and Legal Representation and balance sheet with cut to December of the previous year 31, duly certified by the Auditor. For Ranchers Funds that are created after the entry into force of this law, the balance sheet may be the initiation of activities.
. Upon receipt of the application for registration of commencement of operations rediscount and verified by Finagro, this entity shall inform the Livestock Fund, over a period of time not exceeding 15 calendar days of receipt of the request, authorization start of the rediscount operations. Immediately produce the record of the authorized signatures to Finagro by the Cattlemen Funds.

ARTICLE 4. Ranchers Funds may rediscount financial resources to Finagro for all credit arrangements established within Finagro manuals, that affect the strengthening and development of the agricultural sector. Effective Notes

Legislation Previous

The 5th ITEM. The financial terms for loans to rediscount by the Cattlemen Funds, such as auto- tico rediscount; prequalification; Antique spending; minimum amount per transaction rediscount; rediscount margin; total amount of assets for Small and Medium Ranchers; maximum interest rates; rediscount rates for loans rediscounted by the Cattlemen funds for Small, Medium and Large Ranchers; cover funding for Small, Medium and Large Ranchers; deadlines; arrangements for payment of interest; grace periods; modalities loan amortization and payment of interest shall be established and existing in the manual Finagro services.

ARTICLE 6o. For all the effects of this law, are considered Small Ranchers to natural or legal persons being custodians of a Livestock Fund, possess up to two hundred fifty (250) heads of cattle and / or buffalo, of which at least forty (40%) percent shall be earned as depository of the Fund; are considered medium Ranchers to natural or legal persons being custodians of a Livestock Fund, hold between two hundred fifty-one (251) and up to five hundred (500) heads of cattle and / or buffalo, of which at least thirty (30%) percent shall be earned as depository of the Fund; and they are considered as large cattle ranchers, to natural or legal persons who do not meet the conditions set to be considered as small or medium Ranchers.
PARÁGRAFO. It is understood by cattle breeding activity and / or buffalo, buying calved, Horras females and females release; wombs retention, acquisition of embryos and breeding males. Also, as complementary to the breeding activities are the construction of stables, buying feeders, waterers, salting, pumps, scales, milking equipment, cooling tanks milk, laboratory equipment for quality control of milk, infrastructure for installation, picapastos, equipment for silage and haymaking, and the planting of 300 hectares in tecnificados pastures.

ARTICLE 7. Cattlemen Funds are supervised by the Banking Superintendency may request guarantees to the Agricultural Guarantee Fund, FAG, to support the value of agricultural loans granted to farmers when they can not provide the required normal security. Costs and expenses incurred in the establishment and lifting of guarantees, either direct or through the Agricultural Guarantee Fund, FAG, shall be borne by the beneficiary of the credit farmer.

Article 8. Ranchers Funds engaged to Finagro rediscount operations shall be required to fulfill the norms issued by the Banking Superintendency and standards, features and procedures referred to in Finagro Service Manual. PARAGRAPH 1.
. Cattlemen Funds before starting its rediscount operations to Finagro must modify their administrative structures, creating departments of credit analysis, collection and portfolio control, and others required to exercise efficiently and adequacy of financial intermediation. PARAGRAPH 2.
. By'm not comply reiterated by the Cattlemen Funds, the rules established by the Banking Superintendency and Finagro, subject to the penalties provided by law, may in the opinion of the Banking Superintendency, losing access to rediscounting credit operations Finagro before.

Article 9. Ranchers Funds may rediscount financial resources to Finagro, by a permanent and rotating amount up to eleven (11) times more than its liquid assets, as defined in the 2nd paragraph. Article 1o. of this law, which will be calculated monthly in accordance with the rules and regulations of the Banking Superintendency.

ARTICLE 10. The maximum allowable amount of credits to natural or legal persons, subject of funding, will be up to 10% Liquid Cattlemen Heritage Fund, estimated in accordance with the provisions of the 2nd paragraph. Article 1o. of this law.

ARTICLE 11. Livestock Capitalization Incentive (ICG) created by Law 363 of 1997 Article 18 will be awarded to the Small, Medium and Large livestock production, defined by this law, including both cattle, and cattle bufalino.
PARÁGRAFO. The National Government will make budgetary appropriations and operations necessary to allocate the resources required for the full operation of the ICG.
These resources will be provided by Finagro in accordance with the annual program adopted by the National Agricultural Credit Commission (CNCA).

ARTICLE 12. The value of the incentive for Livestock Capitalization Small Ranchers be equivalent to forty percent (40%) to medium farmers to thirty-five percent (35%) and large cattle ranchers to thirty percent ( 30%) of the costs incurred by the implementation of projects for breeding activity, enshrined in paragraph of Article 6. of this law.

ARTICLE 13. When the execution of an investment project resulting benefits to different people, they may individually access the incentive. In this case, both the project together as people, individually considered, they must prove the conditions laid down for both in this law and rules enacted for this purpose by the National Commission on Agricultural Credit (CNCA) and Finagro.
investment projects covered by this law shall not be incentive when considered for funding or other incentives or subsidies received by the State for the same purpose.

ARTICLE 15. For the management of incentive to Small, Medium and Large Livestock Production, the CNCA and Finagro, as administrator of the program, distinguished three events namely: Eligibility, granting and payment.

ARTICLE 16. By Finagro eligibility defines and communicates whether the investment project submitted for consideration by a Livestock Fund and the applicant may be subject and object of the incentive.
The eligibility of a project inve rsion be determined, at the express request, once established budget availability of resources, evaluated its technical characteristics, financial, cost, environmental and organization, and verified compliance of the general conditions outlined for the effect of this law and the particular indicated by the CNCA and Finagro. PARAGRAPH 1.
. Within the span of one year, a person, natural or juridical, may not be eligible for recognition of incentive subject more than once, counted from the date of notification of eligibility. PARAGRAPH 2.
. Applications submitted for eligibility, award and incentive payment does not constitute exercise of the right of petition or receipt, study or definition, involve administrative actions or entitle resources of this nature.
communication eligibility indicate, among others, the amount of the incentive, the term of eligibility and the general and particular conditions whose fulfillment must be evidenced by the applicant Incentive, so that it can be granted.

Article 18. Failure to comply with the general and specific conditions that the applicant must demonstrate the incentive to access grant, within the term indicated in the communication of eligibility, will lose the validity and its effects.
However, without prejudice to the budgetary rules, Finagro may extend the period of its validity, for once, when situations of force majeure, duly verified in accordance with regulations occur.

ARTICLE 19. Within the power conferred on the CNCA to establish the amounts, terms and conditions for investment projects covered by the incentive to Small, Medium and Large livestock production, it may, in addition to what is stated in this law, regulating the eligibility of land, determine the percentage of recognition of the incentive and set maximum amounts for them, which at any time may be lower than those indicated in Article 12 of this law.

ARTICLE 20. By granting, Finagro recognize the right to the incentive for Small, Medium and Large Livestock Production for the executor of an investment project when it has demonstrated compliance with the terms and conditions stipulated in communication eligibility.
PARÁGRAFO. The granting of the incentive is produced with the issuance of the title by which the Certificate of incentive for Small, Medium and Large Livestock Production is recognized.
payment, Finagro makes effective the incentive to Small, Medium and Large Livestock Production awarded, for which proced was subject to funds located in its treasury has made the Nation.
PARÁGRAFO. Payment of the incentive for Livestock Capitalization, ICG, will take place on the second working day of the week following the date of issue of communication award and payment by Finagro which the central offices rediscount be delivered in conjunction with "projection weekly maturity" and this projection the value of the interests that must be canceled by the rediscounted value of the Capitalization Incentive Livestock, ICG, to be paid will be included. Also in the daily report of maturity to be delivered the day before them, the value of the interests mentioned will be included. Once the payment of incentive Capitalization Livestock, ICG is made, Finagro generate a credit note for each transaction that has been benefiting from the fertilizer and the new amortization schedule of the principal balance remaining rediscounted, which will be available at first time next business day in the area of ​​credit and portfolio.
Within five (5) business days following the date of payment of the value of the incentive for Livestock Capitalization, ICG, the Livestock Fund, it must apply the respective payment to the principal balance of credit rediscounted with which funded the project and simultaneously inform the recipient that fact, indicating the new repayment plan loan balance. Checked delays in the implementation of financial resources, Finagro report the matter to the Banking Superintendency.
Finagro in as administrator of resources for the incentive program for Small, Medium and Large Livestock Production and Livestock Funds within the actions of evaluation, approval and monitoring of loans and control of their respective investments, verify, according them appropriate compliance with the conditions of eligibility, grant and Incentive payment in accordance with the terms regulated by the CNCA.

ARTICLE 23. The CNCA and Finagro, in its fields of competence set out the conditions, terms and formalities required for the full operation of the incentive.
Finagro may advance dissemination, management and verification of eligibility, award and incentive payment to Small, Medium and Large Livestock Production such services directly or contract with the Cattlemen Funds under their supervision.

ARTICLE 25. It corresponds to the entity responsible to inspect, monitor and control the livestock funds, establish systems to determine the reserve for the replacement of livestock, referred to in Article 14 of Law 363 of 1997.

ARTICLE 26. Members of the Board of Directors and Managers Funds made Cattlemen re-discountable credit operations to Finagro, criminal and liable materially for those operations that are approved by fraud and that go deterioration of heritage and Livestock Fund Finagro indirectly.
Cattlemen Funds without exception, have a term of one (1) year from the effective date of this law, to implement the sale of all livestock to negotiate, by weighing through scales. The Auditor this quarterly report to the entity exercising control and supervision of the respective Livestock Fund.

ARTICLE 28. For the Cattlemen Funds may carry out operations rediscount credit operations to Finagro must have at least one repository for each four hundred (400) monthly statutory minimum wages (smlmv), which make up its liquid assets , according to certification issued by the Auditor, based on the Balance Sheet, with cutting at December 31 of the preceding year.

Cattlemen ARTICLE 29. Funds that do not benefit from the above provisions may become Corporations in accordance with the decision of the shareholders and therefore not entitled to the benefits of this law.

ARTICLE 30. This law applies from the date of its publication and repeals provisions that are contrary.
The President of the honorable Senate,
The Secretary General of the honorable Senate of the Republic, Manuel Enríquez Rosero
The President of the honorable House of Representatives,
The Secretary General of the honorable House of Representatives, ANGELINO
published and enforced.
Given in Bogotá, DC, on August 3, 2001.

ARANGO ANDRES PASTRANA Minister of Finance and Public Credit, Juan Manuel Santos Calderon
The Minister of Agriculture and Rural Development, RODRIGO VILLALBA

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