The Saeima has adopted and the President promulgated the following laws: the amendments to the law "on State and local funding and wasted effort" to make the law "on State and local funding and to the prevention of waste" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1995, no. 17) follows: 1. Article 2 shall be supplemented with the second part as follows: "(2) the State and local governments, as well as State and local authorities their financial resources shall be held with credit institutions of the Republic of Latvia. This provision does not apply to those public authorities who, under the laws of Latvia is located in foreign countries. "
2. To make article 4 by the following: "article 4. Restrictions to grant credits, to issue loans, give guarantees and warranties (1) local, national and local authorities, enterprises, incorporated companies and credit companies may be served the law of credit institutions and in other laws.
(2) local authorities, State and local authorities, enterprises, incorporated companies and companies in which the State or a municipality part of share capital exceeds 50 individually or in total interest, other than the third, fourth and fifth part and other cases provided for by law, it is prohibited to issue any type of loans and give guarantees or warranties.
(3) the second paragraph of this article shall not apply to: 1) companies in which the State or a municipality part of share capital exceeds 50 individually or in total interest and previously have received written permission from the State or local government, the holder of the shares;
2) in cases where the State or municipality issuing the loans and give incorporated companies guarantees and guarantees, advance written permission from the national authority or authorities responsible for the incorporated companies.
(4) If this article incorporated companies referred to in the second subparagraph are privatized or if the company is privatized in State or municipal capital, that authorisation is to be received from the institutions that carry out privatization.
(5) the Institution responsible for the incorporated companies, the State or local government capital in the company and holder of authority, which shall carry out the privatisation, creates bonding and warranty, as well as keep the guarantee or warranty any one original. Guarantee and warranty are not valid if not entered in the relevant register.
(6) If a public company or incorporated companies, is delivered to the institution, the privatisation, which was a privatizējam object, pass the privatisation Agency of record.
(7) provide loans, give guarantees and safeguards in accordance with the procedure laid down in this article is allowed only if the issuing of a loan or guarantee or guarantor has paid the State and municipality tax, employees paid salaries and against their proceedings are not actions for the recovery of the debt. "
3. Supplement article 10, second subparagraph, after the words "public health" with the words "as well as" social assistance.
4. To supplement the law with the transitional provisions for the following: "1. the transitional provisions for institutions that have responsibility for State and local businesses and incorporated companies, as well as national or local holders of shares in companies where the State or local government part individually or in total share capital exceeds 50 percent, and the institution carrying out the privatisation until May 1, 1996, must create a pledge, surety and guarantee register to include mortgage , guarantees and warranties entered into or issued to a Cabinet of 10 April 1996 rule no. 136 "amendments to the law" on State and local funding and to the prevention of "waste" into force.
2. With the entry into force of this Act shall terminate the constitutional order of article 81 of Cabinet of Ministers issued Regulation No 86 and no 136 "amendments to the law" on State and local funding and to the prevention of waste "(Latvian Saeima and the Cabinet of Ministers rapporteur, 1996, nr. 10, 11)."
The law shall enter into force on the day following its promulgation.
The law adopted by the Parliament in 1997 on 5 February.
The President of the Parliament instead of the President a. perfected 1997 in Riga on February 21.