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The Stabilisation Of The Economy And The Law Report

Original Language Title: Laki kunnan talouden vakauttamisesta ja kuntaselvityksestä

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Law on the consolidation of the municipality's finances and the municipal report

See the copyright notice Conditions of use .

In accordance with the decision of the Parliament, which has been adopted in accordance with Article 67 of the Statutes,:

Chapter 1

General provisions

ARTICLE 1
Purpose of the law

This law provides for State aid and a procedure for the granting of exceptional financial difficulties to the municipality in order to ensure that the municipality is able to provide the basic services necessary for its residents On their financial commitments, without raising the price of their tax base on a long-term basis and disproportionately to higher levels than other municipalities.

Chapter 2

State aid to the municipality

ARTICLE 2
Interest rate support and consolidation

The Ministry of the Interior may, after having ascertained that the financial situation referred to in Article 1 of the municipality is subject to State aid, authorise the credit institution's loan to the municipality for a loan by the municipality or by a credit institution Interest rate subsidies and the granting of interest-rate subsidies from State resources and the granting of a stabilisation loan from State resources to the municipality as set out below.

In the context of the examination of the State budget, the maximum amounts of loans and loans for stabilisation loans are decided on an annual basis.

ARTICLE 3
Application for interest rate and stabilisation loan

The municipality shall submit an application for approval of an interest rate loan and an application for the granting of interest subsidies and a stabilisation loan to the Ministry of Interior. It shall specify the terms and conditions of the loans granted as interest rate loans.

The application must be accompanied by a plan approved by the Board of Governors for the consolidation of the municipality's finances.

§ 4
Interest rate conditions

The Ministry of the Interior may accept interest subsidies:

(1) a bond issued by a municipality with a loan from a domestic credit institution or a municipality through such a credit institution; and

2) a loan or bond issue to be offered to the municipality of the domestic credit institution.

The interest rate charged by the credit institution shall not exceed the interest rate which the credit institution normally applies to the interest rate loans to the municipalities.

The annual interest rate subsidy shall not exceed 5 % of the outstanding loan capital and may be paid for five years. The payment period for the interest rate subsidy may be extended by a further five years under the conditions set out in Article 1. Before an interest rate subsidy decision is taken, interest subsidies may be paid on the basis of the decision-making date.

The State Treasury pays the interest rate subsidy every six months to the credit institution. The State Treasury in the form of interest rate subsidies shall pay the Municipality for an application accompanied by an interest payment of the credit institution's interest payment.

§ 5
Recovery of interest rate recovery

Interest received by the municipality shall be recovered in one instalment one year after the interest rate has been fully paid. The Ministry of the Interior may, on application by the municipality, extend the period of payment under the conditions set out in Article 1 for a maximum period of three years.

The credit institution shall notify the State Treasury of the payment of the last instalment of the interest subsidy.

ARTICLE 6
Terms of the guarantee loan

The repayment term shall be no more than 15 years, and a maximum number of years free of the abbreviations shall not exceed seven. Thereafter, for the first five years, two and a half per cent of the initial loan shall be charged, two and a half per cent of the initial loan, and the remaining principal amount outstanding in the following years, half-yearly in the balance sheet.

The interest rate on the guarantee loan is the five-year reference rate of the Bank of Finland plus a half percentage point. The Ministry of the Interior may reduce interest rates by up to five percentage points for a period of five years. The application of the reduced rate may be extended by a further five years under the conditions referred to in Article 1.

§ 7
Recovery of interest rate reduction in the interest rate loan

The aid received at a reduced rate of the municipality's stabilisation loan shall be recovered to the State within one year of the full payment of the stability law. The Ministry of the Interior may, on application by the municipality, extend the period of payment under the conditions referred to in Article 1 for a maximum period of three years.

§ 8
Conditions of use of the interest rate loan and the stability loan

The new interest rate loan and the stability loan shall be curtailed by the municipality of credit institutions, or on the basis of a guarantee or any other commitment, by the municipality.

During a period of five years, it may be possible to lift the Stability Act for its allocation. Before the loan or part of the loan is raised, the municipality shall forward to the Treasury a credit institution's maturing notice and, if it is a matter of payment of the loan or part thereof before maturity, the commitment of the credit institution to approve the early performance.

§ 9
Control

The credit institution and the municipality shall provide the Ministry of the Interior with the necessary information to establish that interest rate subsidies and consolidation have been used in accordance with Article 8 (1).

The municipality has to seek advance approval of the Ministry of the Interior with its essential changes to the stability plan of its economy. In addition, the municipality must inform the Ministry of the Interior every six months of the progress made in implementing its stability plan and of the minor changes it has made.

ARTICLE 10
Penalties for fraudulent practices

Where the municipality which has received interest subsidies or a stabilisation loan has provided an erroneous information or concealed the essential facts or has been grossly negligent in the implementation of the consolidation measures it has announced in the application, the Ministry of the Interior may: Abolish the payment of interest subsidies and of undrawn stabilisation loans.

In addition to the procedure provided for in Article 1 (1) of the Municipality of the Ministry of the Interior, the Ministry of the Interior may order the Municipality to carry out the interest subsidies received by the municipality and immediately recover the principal of the stabilisation loan, as well as the return of interest subsidies and the stabilisation loan. On the date of their haul, including the annual interest rate Article 4 of the Corinth Act The interest rate referred to in paragraph 3. (3.3.1995/309)

Chapter 3

Kunta report

ARTICLE 11
Launch of the survey

If the municipality is no longer able to meet its obligations, the municipal council should, after consulting the municipal council, submit a proposal to the Council for a municipal report on the activities of the municipality and the basic services essential to the local population. Security.

The State Council may decide to initiate a municipal report without any proposal from the municipal council, after consulting the municipal council, if the municipality, on the basis of the suspension of the aid under Article 10, the recovery and payment of fines, or any other For a specific reason, the situation referred to in paragraph 1 and an important public interest are required.

The State Council may take a decision to launch a municipal report, irrespective of whether the municipality has benefited from the aid referred to in Article 2.

The Council of State shall set a deadline for the municipal report. The decision may be withdrawn if there is no further reason for it to continue.

ARTICLE 12
Appointment of a liquidator

The Ministry of the Interior appoints a municipal administrator as mentioned in the decision of the Council of Ministers.

The Ministry of the Interior may terminate the liquidator before the end of the period when it is due to do so and appoint a new municipal liquidator for the remainder of the period.

The Ministry of the Interior decides on the remuneration of the State resources to be paid by the State and collects the costs incurred by the municipality for the municipality's activities on a yearly basis.

ARTICLE 13
Duties of the liquidator

The liquidator shall:

(1) draw up, without delay, in cooperation with the municipal authorities, a plan for the stabilisation of the municipality's finances and a detailed programme for the management and financing of the municipality's tasks;

(2) submit to the institutions of the municipality, with the exception of the municipal council, the proposals for budgetary changes required under the plan referred to in paragraph 1 and the programme;

(3) to make other proposals necessary for the consolidation of the economy to the municipal institutions and to monitor their implementation; and

(4) to monitor the economic development of the municipality and to prepare, within the period referred to in Article 12 (1), any changes to the stability plan.

ARTICLE 14
Powers of the liquidator

When exercising the powers set out below, the liquidator shall cooperate with the municipal authorities.

The administrator shall have the right, notwithstanding the rest of the law, or the municipal regulation:

(1) to obtain from the municipal authorities the information they deem necessary in the management of the municipality, in accordance with the activities and the economy of the municipality, as provided for in Article 93 (2) of the municipal law;

(2) to receive invitations to meetings and agendas of the municipal institutions and to participate in the meetings of the municipal institutions;

(3) acting as rapporteur for the municipal council and the other institution of the municipality, rather than the Chair or any other rapporteur, in the case deemed necessary by Article 63 and 71a of the Municipal Act;

(4) initiate a special audit of the municipal administration and the economy;

(5) to initiate, on behalf of the municipality, compensation or any other action in the case of court, arbitrator and county law, and inform the police of the case and make a request for prosecution;

(6) to refer the decision to the municipal council or the board as provided for in Articles 63 and 7b of the municipal law, and to present the amendments which it requires; and

(7) prohibit the implementation of the decision taken by the municipal council or government and may refer the matter to a review within 14 days, and shall, in such a case, make the necessary amendments which it considers necessary.

Under Article 27 (6) of the municipal law, the Municipality of Municipality is the subject of the municipal authority's work as rapporteur.

§ 15
Referral to the Home Office

If the Municipal Council or Government does not change its decision in a way that has been returned to the new treatment by the municipality of origin, the local administrator may prohibit the execution of the decision and transfer it within 14 days. For the Home Office to decide.

ARTICLE 16
Supervision of the work of the operator

The Ministry of Interior is supervised by the Ministry of Interior, to which the local administrator must provide information on its activities and the development of the municipality's finances and activities.

§ 17
Appeals against appeal

The decision taken pursuant to Article 11 (1) of this Law and the decisions taken by the Ministry of the Interior under Articles 12 and 15 shall not be subject to appeal.

Article 139 (3) of the municipal law provides for the admissibility of measures under Article 139 (3) of the municipal law.

Chapter 4

Outstanding provisions

ARTICLE 18
More detailed provisions

More detailed provisions on the procedure in the municipal report shall be adopted, where appropriate, by decree.

§ 19 (18.12.98)
Entry into force and application

This Act shall enter into force on 1 August 1994 and shall expire on 31 December 2001.

This law shall apply to a municipality which has benefited from an interest rate subsidy or a stabilisation loan, or where it has been decided to launch a municipal report before 1 January 1999. Until 31 December 2001, the provisions of the law shall apply until such time as the municipality has paid back the State interest rate subsidy and the stabilisation credit claim or the municipal report of the stabilisation or association agreement is terminated.

Before the law enters into force, measures may be taken to implement the law.

THEY 84/94 , HaVM 7/94

Entry into force and application of amending acts:

3.3.1995/309:

This Act shall enter into force on 1 May 1995.

The amount of the interest payable before the entry into force of this Act before the entry into force of this Act shall apply from the date of entry into force of this Act. However, this law may be applied if it leads to a more leniency outcome than the previous law.

THEY 292/94 , TaVM 58/94

20.12.1996/1148:

This Act shall enter into force on 1 January 1997.

THEY 149/1996 , HaVM 24/1996 EV 226/1996

5.12.1997/1103:

This Act shall enter into force on 1 January 1998.

THEY 134/1997 HVM 18/1997, EV 167/1997

18.12.19981064:

This Act shall enter into force on 1 January 1999.

THEY 123/1998 , HaVM 12/1998, EV 183/1998