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Act 676 2001

Original Language Title: LEY 676 de 2001

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LAW 676 OF 2001

(August 3)

Official Journal No. 44,509 of 4 August 2001

3 of Law 1094 of 2006 >

By means of which Law 363 of 1997 and 510 of 1999 are reformed and some provisions on the rediscount of credit operations are given to the Fund for the Financing of the Agricultural Sector, Finagro, and the grant of the livestock capitalization incentive.

Vigency Notes Summary

COLOMBIA CONGRESS

DECRETA:

ARTICLE 1o. 3 of Law 1094 of 2006 > From the time of this law, the Cattlemen's Funds may carry out rediscounting operations of credit operations to the Fund for the Financing of the Agricultural Sector, Finagro.

In order for the Cattlemen's funds to be able to carry out rediscounting operations of credit operations to the Fund for the Financing of the Agricultural Sector, Finagro must have at the time of the operation a Liquid Heritage equal to or greater than the Twelve thousand (12,000) monthly minimum legal salaries in force (s.m.l.m.v.), and a minimum of six thousand (6,000) heads of cattle and/or buffalo. Both the Liquid Heritage and the number of cattle and/or buffalo cattle, must be duly certified by the Fiscal Reviewer of the Livestock Fund, without prejudice to the sanitized liquid assets to be credited to operate, according to the with the regulations to be issued by the National Government for the effect.

PARAGRAFO 1o. The Tax Reviewer certification as to the Liquid Heritage and the number of cattle and/or buffalo cattle, must be issued within the first five (5) working days of the month of May each year. year, and shall be in force until 30 April of the year immediately following. The certification issued by the Fiscal Reviewer will be done on the basis of the financial statements approved by the General Assembly of Shareholders, with a cut to 31 December of the year immediately preceding, on the understanding that the 12,000 minimum wages Monthly legal fees are those that are in force at the time of the accounting closure of financial statements.

PARAGRAFO 2o. The minimum amount of liquid assets provided for in this Article must be permanently met by the Cattlemen in operation. For this purpose the Minimum Operating Property will result from the sum of the following estate accounts: Capital Subscribe and Paid, Capital Warranty, Reserves, Surplus by Prima in Placement of Shares, Undistributed Utilities Previous Exercises, Revaluation of Heritage and Surplus by Valorizations, deduce the accumulated losses.

PARAGRAFO 3o. The Cattlemen Funds that are established after this law has been in force, in order to carry out rediscounting operations of credit operations against Finagro, must meet the requirements established in the legislation in force, in accordance with the regulations to be issued by the National Government for the purpose.

PARAGRAFO 4o. The Cattlemen's Funds may be merged to meet the requirements set forth in this law for the purpose of rediscounting operations of credit operations to Finagro.

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ARTICLE 2o. 3 of Law 1094 of 2006 > The Livestock Funds that meet the requirements set out in Article 1. of this law, must be organized in the terms that they order the legal provisions in force, and comply with the requirements that the National Commission of Agricultural Credit (CNCA) establishes for the operability of the rediscount. They shall be subject to the Inspection, Control and Surveillance of the Banking Superintendence, as of the validity of this law.

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ARTICLE 3o. 3 of Law 1094 of 2006 > Finagro will provide to the Cattlemen's Funds, the resources corresponding to the credits rediscounted through the bank account established by the Fund Cattle rancher at a Commercial Bank. By way of a bank account, Finagro will collect the value corresponding to the capital and interest maturities and other financial expenses, of the credits rediscounted by operations to finance the breeding activities. For this event, the Livestock Funds will not require any endorsement.

In accordance with the above, Finagro will not be able to demand the opening of a current account in the Bank of the Republic, to the Cattlemen's Funds that carry out credit rediscounting operations.

PARAGRAFO 1o. The Cattlemen's Funds in order to start their rediscount operations, must register with Finagro, accompanying the application for registration with a recent certificate of Constitution and Legal Representation and general balance sheet as at 31 December of the year immediately preceding, duly certified by the Fiscal Reviewer. For the Livestock Funds that are created after the entry into force of this law, the balance sheet may be the start of activities.

PARAGRAFO 2o. Once the application for the registration of the start of rediscount and verified operations by Finagro has been received, this entity will communicate to the Cattlemen Fund, within a period of not more than 15 days the schedule of the receipt of the request, its authorization to start the rediscount operations. The registration of the authorized firms before Finagro will be produced immediately by the Cattlemen's Funds.

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ARTICLE 4o. 3 of Law 1094 of 2006 > 83 of Law 964 of 2005. The new text is as follows: > The Livestock Funds will be able to rediscount financial resources to Finagro for all the credit modalities established within the Finagro manuals, which have an impact on the strengthening and development of the sector. Livestock.

Vigency Notes
Previous Legislation
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ARTICLE 5o. 3 of Law 1094 of 2006 > Financial conditions for credits to be rediscounted by the Cattlemen's Funds, such as: automatic rediscount; prior qualification; age of expenditure; minimum amount per rediscount operation; rediscount margin; total amount of assets for Small and Medium Cattlemen; maximum interest rates; rediscount rates for credits discounted by the Cattlemen's Funds to the Small, Medium and Large Cattlemen; funding covers for Small, Medium-sized and Large Cattlemen; deadlines; modalities of payment of interest; grace periods; modalities of credit amortization and interest payments, will be established and in force within the Finagro services manual.

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ARTICLE 6o. 3 of Law 1094 of 2006 > For all purposes derived from this law, small Cattlemen are considered to be natural or legal persons who are the depositaries of a Livestock Fund, two hundred and fifty (250) heads of cattle and/or buffalo, of which at least forty (40%) per cent must be earned as a deposit of the Fund; natural or legal persons who are natural or legal persons are considered to be where a Livestock Fund is deposited between two hundred and fifty-one (251) and up to Five hundred (500) heads of cattle and/or buffalino cattle, of which at least thirty (30%) percent must be earned as a deposit of the Fund; and are considered as Great Cattlemen, natural or legal persons who do not comply with the conditions defined to be considered as Small or Medium Cattlemen.

PARAGRAFO. It is understood by breeding activity of bovines and/or buffalines, the purchase of brown females, female horras and females in levying; retention of bellies, acquisition of embryos and breeding males. Also, as complementary activities to the breeding are the construction of stables, the purchase of feeders, bedrinkers, bakers, motor pumps, scales, milking equipment, milk cooling tanks, laboratory equipment for control of milk quality, the infrastructure for its installation, picapasts, silage and henification equipment, and the planting of up to 300 hectares in technical pastures.

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ARTICLE 7o. 3 of Law 1094 of 2006 > The Livestock Funds that are monitored by the Banking Superintendency, may request guarantees from the Agricultural Guarantee Fund, FAG, to support the value of agricultural credits granted to farmers, when they cannot provide the required normal guarantees. The costs and expenses required by the constitution and the lifting of the guarantees, whether direct or through the Agricultural Guarantee Fund, FAG, must be borne by the beneficiary of the credit.

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ARTICLE 8o. 3 of Law 1094 of 2006 > The Cattlemen's Funds that carry out discount operations against Finagro must comply with the rules issued by the Banking Superintendency and, the rules, features and procedures provided for in the Finagro Services Manual.

PARAGRAFO 1o. The Cattlemen's Funds before starting their discount operations to Finagro, will have to modify their administrative structures, creating credit analysis, collection and control departments, and other required to be able to exercise financial intermediation with efficiency and suitability.

PARAGRAFO 2o. For the repeated non-compliance by the Cattlemen's Funds, of the rules established by the Banking and Finagro Superintendence, without prejudice to the sanctions established in the law, they will be able to of the Banking Superintendency, losing access to discounts on credit operations to Finagro.

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ARTICLE 9o. 3 of Law 1094 of 2006 > The Livestock Funds will be able to rediscount financial resources to Finagro, for a permanent and rotating amount up to eleven (11) times more of its Liquid Heritage, defined in the paragraph 2o. of article 1or. of this law, which shall be estimated monthly in accordance with the current rules and regulations of the Banking Superintendency.

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ARTICLE 10. 3 of Law 1094 of 2006 > The maximum amount of credits granted to natural or legal persons, subject to financing, will be up to 10% of the Liquid Heritage of the Livestock Funds, estimated agreement with the provisions of paragraph 2o. of article 1or. of this law.

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ARTICLE 11. 3 of Law 1094 of 2006 > The Livestock Capitalization Incentive (ICG) created by Law 363 of 1997 article 18, will be awarded to the Small, Medium and Large livestock production, defined in this law, including cattle, and buffalino cattle.

PARAGRAFO. The National Government will carry out the necessary appropriations and budget operations to allocate the resources required for the full operation of the ICG.

These resources will be provided by Finagro in accordance with the annual programming adopted by the National Agricultural Credit Commission (CNCA).

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ARTICLE 12. 3 of Law 1094 of 2006 > The value of the Cattle Capitalization Incentive will be equivalent for Small Cattlemen to forty percent (40%), for Medium Farmers at thirty-five percent (35%) and for Large Cattlemen at 30% (30%) of the costs incurred in the execution of the projects for breeding activity, as set out in the paragraph of Article 6or. of this law.

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ARTICLE 13. 3 of Law 1094 of 2006 > When the execution of an investment project benefits different people, they may access the incentive individually. In this case, both the project as a whole and the individuals, individually considered, will have to prove the conditions outlined for both in this law and in the norms that the National Agricultural Credit Commission (CNCA) will dictate for this purpose. and Finagro.

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ARTICLE 14. 3 of Law 1094 of 2006 > The investment projects in which this law deals are not to be the object of the incentive when for their financing they consider or receive other incentives or subsidies for the State with the same purpose.

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ARTICLE 15. 3 of Law 1094 of 2006 > For the management of the incentive for Small, Medium and Large Livestock Production, the CNCA and Finagro, as the program manager, will distinguish three events: La eligibility, granting, and payment.

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ARTICLE 16. 3 of Law 1094 of 2006 > By eligibility Finagro defines and communicates whether the investment project submitted for consideration by a Livestock Fund and the applicant may be subject to and subject to of the incentive.

The eligibility of an investment project will be determined, at the express request of the interested party, once the budgetary availability of resources has been established, evaluated its technical, financial, cost, environmental and organization, and verified compliance with the general conditions outlined for the effect in this law and the individuals indicated by the CNCA and Finagro.

PARAGRAFO 1o. Within one year, a person, natural or legal, may not be eligible for incentive recognition more than once, counted from the date of the communication of the eligibility.

PARAGRAFO 2o. Applications submitted for the eligibility, granting and payment of the Incentive, do not constitute exercise of the right of petition, nor its receipt, study or definition, involve character actions They do not give the right to resources of this nature.

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ARTICLE 17. 3 of Law 1094 of 2006 > The communication of eligibility shall indicate, among others, the amount of the Incentive, the validity of the eligibility and the general and particular conditions be evidenced by the applicant of the Incentive, so that it can be granted.

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ARTICLE 18. 3 of Law 1094 of 2006 > The non-compliance with the general and particular conditions to be evidenced by the applicant of the incentive to access his or her grant, within the specified period in the eligibility communication, you will lose the validity and effects of this.

However, without prejudice to the budgetary rules, Finagro may extend the period of its validity, for once, when situations of force majeure or fortuitous cases occur, duly verified in accordance with the regulations.

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ARTICLE 19. 3 of Law 1094 of 2006 > Within the faculty that the CNCA has to establish the amounts, modalities and conditions of the investment projects object of the incentive to the Small, Medium and Large Livestock production, the same may, in addition to the provisions of this law, regulate the eligibility of the pregod, determine the percentage of recognition of the incentive and define maximum amounts for the same, which at no time can be less than those mentioned in article 12 of the present law.

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ARTICLE 20. 3 of Law 1094 of 2006 > By granting, Finagro will recognize the right to the incentive to the Small, Medium and Large Production Livestock in favor of the executor of an investment project, when this has evidenced compliance with the terms and conditions stipulated in the eligibility communication.

PARAGRAFO. The grant of the incentive occurs with the issuance of the title by which the Certificate of Incentive to the Small, Medium and Large Livestock Production is recognized.

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ARTICLE 21. 3 of Law 1094 of 2006 > By payment, Finagro makes the incentive for the Small, Medium and Large Livestock Production granted, for which it was subject to the location of funds that in your treasury has made the Nation.

PARAGRAFO. The payment of the Cattle Capitalization Incentive, ICG, shall be made on the second working day of the week following the date of issue of the grant and payment communication by Finagro, which is provide the rediscount centralizing offices together with the "projection of weekly maturities" and this projection will include the value of the interest to be cancelled by the discounted part of the value of the Incentive to the Cattle Capitalization, ICG, to be paid. Also in the daily maturities report to be delivered on the day before the maturities, the value of the above interest shall be included. Once the payment of the incentive to Capitalization Cattle, ICG, Finagro will generate a credit note for each operation that has benefited with the credit and the new plan of amortization of the balance of capital that is rediscounted, the which shall be available at the first hour of the following business day in the area of credit and portfolio.

Within five (5) working days following the date of the payment of the value of the Cattle Capitalization Incentive, ICG, to the Livestock Fund, the Cattle Fund shall apply the respective credit to the capital balance of the discounted credit with which it is financed the project and inform the beneficiary at the same time, indicating the new repayment plan for the credit balance. If there are delays in the application of financial resources, Finagro will inform the Banking Superintendency.

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ARTICLE 22. 3 of Law 1094 of 2006 > Finagro in its capacity as administrator of the resources for the program of incentive to the Small, Medium and Large Livestock Production and the Livestock Funds, within the actions for the assessment, approval and monitoring of the appropriations and for the control of their corresponding investments, shall verify, as appropriate, compliance with the conditions of eligibility, granting and payment of the Incentive, compliance with the terms regulated by the CNCA.

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ARTICLE 23. 3 of Law 1094 of 2006 > The CNCA and Finagro, in the fields of their competencies will establish the conditions, terms and formalities required for the full operability of the incentive.

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ARTICLE 24. 3 of Law 1094 of 2006 > Finagro will be able to advance the dissemination, administration and verification of the eligibility, granting and payment of the incentive to the Small, Medium and Large Livestock Production directly or to contract such services with the Cattlemen's Funds, under its supervision.

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ARTICLE 25. 3 of Law 1094 of 2006 > Corresponds to the Entity in charge of inspecting, monitoring and controlling the Livestock Funds, establishing the systems to determine the reserve for the replenishment of Article 14 of Law 363 of 1997.

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ARTICLE 26. 3 of Law 1094 of 2006 > The members of the Boards of Directors and the Managers of the Cattlemen's Funds that carry out the reaccounting operations against Finagro, will respond to criminal law and This is the case for those transactions that are fraudulently approved and which are in decline in the assets of the Livestock Fund and indirectly of Finagro.

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ARTICLE 27. 3 of Law 1094 of 2006 > The Livestock Funds without exception, will have a term of one (1) year, counted from the time of this law, to implement the sale of the entire livestock to negotiate, by weighing through scales. From this the Fiscal Reviewer will report quarterly to the entity that exercises control and surveillance of the respective Livestock Fund.

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ARTICLE 28. 3 of Law 1094 of 2006 > In order for the Cattlemen's Funds to be able to carry out rediscounting operations of credit operations against Finagro, they must have at least one depositary for each Four hundred (400) monthly minimum legal salaries in force (s.m.l.m.v.), which compose their liquid assets, according to certification issued by the Fiscal Reviewer, based on the Balance Sheet, with a cut to 31 December of the year immediately previous.

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ARTICLE 29. 3 of Law 1094 of 2006 > Cattlemen's Funds that do not comply with the above provisions will be able to become Companies Anonymous in accordance with the shareholders ' decision and therefore not will be entitled to the benefits of this law.

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ARTICLE 30. 3 of Law 1094 of 2006 > 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,

MARIO URIBE ESCOBAR.

The Secretary General of the honorable Senate of the Republic,

MANUEL ENRIQUEZ ROSERO.

The President of the honorable House of Representatives,

BASILIO VILLAMIZAR TRUJILLO.

The Secretary General of the honorable House of Representatives,

ANGELINO LIZANO RIVERA.

COLOMBIA-NATIONAL GOVERNMENT

Publish and comply.

Dada en Bogotá, D. C., 3 August 2001.

ANDRES PASTRANA ARANGO

The Minister of Finance and Public Credit,

JUAN MANUEL SANTOS CALDERÓN.

The Minister of Agriculture and Rural Development,

RODRIGO VILLALBA MOSQUERA.

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