Cabinet of Ministers Regulations No. 746 Riga, July 7, 2009 (pr. No 47 30) agricultural and rural development guaranteed loan procedure Issued under the agricultural and rural development Act article 5 tenth 1. Agriculture and rural development loan guarantee procedures. 2. public joint stock company "rural development fund" (hereinafter referred to as the Fund) guarantee granted: 2.1. credit facilities have been granted loans if they do not have sufficient credit collateral, agricultural and rural development projects (annex 1), related to agricultural activity without the production processing and the Treaty establishing the European Community listed in annex 1 of the agricultural production and processing, if the processor follows the law "on settlements with unprocessed agricultural producers of" specific settlement procedures and submit the proof to the Foundation : 2.1.1. modernisation of agricultural holdings (according to the Commission of 15 December 2006, Regulation (EC) No 1857/2006 on 87 and 88 of the Treaty. application of article regarding small and medium-sized enterprises active in the production of agricultural products and amending Regulation (EC) No 70/2001 (Official Journal of the European Union, December 16, 2006, no L358) (hereinafter referred to as Commission Regulation No 1857/2006));
2.1.2. agricultural added value (according to the Council of 20 September 2005 Regulation (EC) No 1698/2005 on support for rural development by the European agricultural fund for rural development (EAFRD) (Official Journal of the European Union, 2005 October 21, Nr. L277), Commission of 15 December 2006, Regulation (EC) No 1974/2006 laying down detailed rules for the application of Council Regulation (EC) No 1698/2005 on support for rural development by the European agricultural fund for rural development (EAFRD) (Official Journal of the European Union 2006 December 23, Nr. L368));
2.1.3. the aid for young farmers (under Commission Regulation No 1857/2006 7);
2.1.4. the vocational training and information services (in accordance with Commission Regulation No 1857/2006 of 15);
2.1.5. agricultural and forestry infrastructure development and customization (according to Commission Regulation No 1857/2006, article 4, paragraph 2);
2.1.6. fishing and aquaculture activities (according to the Commission on 24 July 2007 Regulation (EC) no 875/2007 of the EC Treaty and article 88 87. application of the de minimis aid for the fisheries sector and amending Regulation (EC) 1860/2004 amendment (Official Journal of the European Union, 2007 25 July, No. L193) (hereinafter referred to as Commission Regulation (EC) no 875/2007));
2.1.7. other activities in rural and agricultural development (pursuant to Commission Regulation No 1857/2006, the Commission of 20 December 2007 Regulation (EC) No 1535/2007 of the EC Treaty and article 88 87. application of the de minimis aid in the agriculture product industry (Official Journal of the European Union, 2007. on 21 December, no .v88 1989) (hereinafter referred to as Commission Regulation (EC) No 1535/2007) and of the Commission of 15 December 2006, Regulation (EC) No 1998/2006 on 87 and 88 of the Treaty. application of article de minimis aid (Official Journal of the European Union 2006 December 28, Nr. L379) (hereinafter referred to as Commission Regulation No 1998/2006));
2.2. the guarantor shall provide guarantee for economic operators, which field support services logged on in support of the implementation of the common agricultural policy and advance payments received pursuant to Commission of 15 April 1999, Regulation (EC) No 800/1999 laying down common detailed rules for the application of the system of export refunds on agricultural products (Official Journal of the European Union, 1999 April 17, No. L102) and the Commission on 20 august 2008, Regulation (EC) no 826/2008 laying down common rules on the granting of aid for certain agricultural products for private storage (Official Journal of the European Union, august 21, 2008, no L223). 3. under the terms of this Warranty are the obligations of the Fund to compensate the lending institution the outstanding loan or guarantee the worker's credit, or a guarantee of principal part in accordance with these rules, of the cooperation agreement and the guarantee agreement. 4. the Fund guarantees granted loans or guarantees issued by a credit institution which has concluded a cooperation agreement with the Fund. Cooperation agreement establishes the limited availability information, dispute procedures and possible penalties if the obligations are not met. 5. the Fund guarantees that: 5.1 a person who qualifies for a guaranteed loan or guarantee of its liabilities are: 5.1.1 farmer or fisherman's farmstead;
5.1.2. the merchant;
5.1.3. the Association or foundation that runs about the food and agricultural sector and implements the European Union co-financed projects;
5.1.4. the agricultural service cooperative society, which recognizes the Fund eligible for aid in accordance with the laws and regulations of agricultural service cooperatives the necessary documents for registration and screening of this public aid;
5.1.5. a natural person – the economic operator;
5.2. the person is registered in the State revenue service as a tax payer and it has no tax arrears;
5.3. credit is not taken consumption needs;
5.4. credit or guarantee the worker does not meet the saimn the difficulty of performing the activity status of the femur: 5.4.1. by a decision of the Court of Justice declared insolvency proceedings or by court decision implemented the legal protection process, its economic activity or has been terminated in accordance with the commercial information that is in the process of liquidation;
5.4.2. the share capital is reduced by more than half, from which more than one quarter have fallen in the last 12 months. This condition shall not apply to credit or guarantee to the worker who is registered for less than three years. 6. the Fund guarantee can be granted up to 70% of the credit institution's credit issued or guarantee claims. Guarantee a minimum amount of one rural development activity is 1000 lats. The maximum amount of the guarantee per field of activity Development Fund in accordance with the provisions of annex 1. Loans or guarantees shall be denominated in another currency in dollars after the Bank of Latvia exchange rate on the date specified in the application for the obtaining of guarantees (hereinafter application) (annex 2), and the guarantee is determined in local currency. The guarantee does not provide loan interest, fines and penalties. 7. warranty in force an amount not exceeding: 100,000 – 500 7.1 for one credit or guarantee to the worker;
7.2.600 000 lats-linked credit or guarantee for a group of workers, article 1 of the law of credit institutions in the sense of paragraph 18, or agricultural cooperatives of services to the public;
7.3.1 054 206 late-working capital replenishment agricul agricultural service cooperative society, which recognizes the Fund eligible for aid in accordance with the laws and regulations of agricultural service cooperatives the necessary documents for registration and screening of this public support and that net sales in the previous year exceeded 5 000 000 lats, as well as a number of members of an agricultural service cooperative society on the date of the application shall not be less than 70 agricultural producers in accordance with Commission Regulation No 1998/2006;
7.4.3 500 000 lats – guarantees the guarantor provided guarantee for the merchant that the field support service logged in support of the implementation of the common agricultural policy measures, "the European Commission program-delivery of food to the most deprived persons". 8. The warranty period is not more than 10 years after the decision on the granting of aid entered into force. At the request of the credit institution guarantees can be extended, if it does not increase the risk of the operations of the Fund. 9. for warranty, credit or guarantee the worker with the credit institution agree that the credit institution will submit the application to the Fund. 10. a credit institution shall accompany the application: 10.1. credit decision on granting of credit or guarantee credit or guarantees to workers, including security;
10.2. a credit or guarantee issuing;
10.3. credit or guarantee the worker's financial statements for the previous year, as well as operational, financial statements for the reporting year (balance sheet, income statement and cash flow statement);
10.4. credit or guarantee the worker's business plan or equivalent document content;
10.5 loan or guarantee contract of the worker a copy of the use of the European Union, if the loan takes the European Union co-financed the project implementation;
10.6. credit or guarantee the workers fill the form on the implementation of the measure received State or support of the European Union (annex 3);

10.7. the workers fill in form of de minimis aid received in accordance with the laws and regulations that govern the de minimis aid tracking and award procedures, and de minimis aid in the form of samples, as well as a form of de minimis aid received in accordance with the laws and regulations on the procedures for administering and monitoring State aid granted under Commission Regulation (EC) No 1535/2007 and Commission Regulation (EC) no 875/2007;
10.8. information about credit or guarantee the worker's estate, the difficulties associated with it;
10.9. physical person – a copy of the identity document;
10.10. credit or guarantee the worker's written consent for the warranty request, and that the credit of the Fund may disclose information about a credit or guarantee the worker's credit history (includes information about the credits issued, deleted and it balances) and payment discipline (includes information on charges and delays). 11. the Fund assess credit or guarantee the worker: 11.1. credit or guarantee security, additional security and it;
11.2. operating history;
11.3. the validity of the business plan;
11.4. financial planning and cash flow;
11.5. the actual and projected solvency;
11.6. credit history, payment discipline;
7.3. credit or guarantee assurances about the intensity of the aid (aid equivalent to the guaranteed credit total eligible costs, expressed as a percentage), the Fund shall be calculated in accordance with the methodology (annex 4). 12. the Fund within 10 working days of the receipt of the application, examine the application and accompanying documents, and shall decide on the granting of the guarantee or refusal to grant a guarantee (guarantee decision). The Foundation shall have the right to refuse the granting of the guarantee or the guarantee if: 12.1 the warranty request does not comply with these rules 2, 5 and 6 of these requirements;
12.2. the application or documents do not comply with this provision in paragraph 10 above;
12.3. the application referred to the false information;
12.4. the granting of the guarantee, the risk more than 2%;
12.5. by granting the guarantee, exceeded the maximum allowable aid intensity laid down in laws and regulations on the requirements for the measure in question;
12.6. giving guarantee exceeded Commission Regulation No 1998/2006 article 2 paragraph 2 set out in the de minimis threshold;
7.9. giving guarantee exceeded Commission Regulation No 1535/2007 of article 3 set out in the de minimis threshold. 13. If necessary, the Fund requires a credit or guarantee to the worker to submit additional information to clarify that rule 10 referred to the information contained in the documents, to produce relevant documents, as well as get acquainted with credit or guarantee the worker the exercise of economic activities. Additional information on credit or guarantee the worker shall submit to the Fund within five working days of receipt of the request. If you need additional information, the Foundation accepts the guarantee decision within five working days after the requested additional information is received. 14. Within three working days after the decision, the guarantee fund shall inform the credit institution, as well as notify the one-time fee for the issuance of the guarantee, which is determined as a percentage of the guaranteed amount. 15. The fee for the grant of credit guarantees or guarantees (fee) is from 0.5% to 2% of the guaranteed amount. The percentage of the amount determined in accordance with the guarantee fund. The fee is determined by the base interest rate 0.5% of the guarantee plus the guarantee of five of the most important risk factor is the percentage of assessment in accordance with the provisions of annex 5. The Fund's Executive Board has the right to the following fixed interest rate of 0.3% adjusted, if the application contains information about additional risks or have developed a risk management plan for project implementation activities. 16. not later than 30 working days after the decision of the guarantee and the provisions referred to in paragraph 15 of the fees for the grant of a credit guarantee fund for the specified account, the Fund and the credit institution guarantees the signature of the Treaty. The guarantee in the contract State: 16.1. Fund, credit and credit or guarantee the worker's legal property or personal data;
16.2. a credit or guarantee amount in dollars;
16.3. the risk allocation between the credit institution and the guarantee fund, setting a percentage of the loan or guarantee, the principal amount of the loan or guarantee in local currency at the time of issue;
16.4. a credit or guarantee for your use;
16.5. the warranty period. 17. the Fund within five working days after the signing of the Treaty of guarantee fund homepage on the internet puts information about credit or guarantee beneficiaries, the use of credit or a guarantee, the amount of the guarantee at the time of the award and the award of the guarantee period. 18. If within 30 working days of the adoption of the decision of the guarantee fund and the credit institutions of a guarantee contract has not been concluded, it ceases to be valid. The credit institution shall have the right to submit a new application to the Foundation. 19. Guarantee Agreement is terminated, if the credit institution: 19.1. provided false information to the Foundation, which influenced the decision of the guarantee;
19.2. the creator of credit or guarantee claims resulting third party;
19.3. without the consent of the Foundation has made changes to the credit or surety agreement or credit or guarantee security contract. 20. Warranty during the period of the agreement, the credit institution every quarter until the 15th date of the following month writing provides the Foundation for information on loan principal balance or guaranteed obligations, as well as to each of the eighth month following the date the Fund informed of the State‐guaranteed loan payment or execution delays that exceed: 20.1.30 calendar days;
20.2.60 calendar days. 21. the Fund shall pay the worker the credit outstanding credit or guarantee part of the reference amount under the guarantee agreement (hereinafter referred to as the compensation) at the written request of the credit institution in any of the following cases: 21.1. credit or guarantee the worker missed credit or guarantee contractual obligations to 180 days, and the credit institution has decided to request a visa credit or guarantee repayment;
21.2. the credit institution has submitted to the Court of Justice of the credit or surety agreement or guarantee credit specified in the worker's obligations;
21.3. credit or guarantee workers have begun insolvency proceedings. 22. a credit institution no later than two working days before the meeting of the kredītkomitej of the credit institution shall notify the Fund and invited the representative to participate in the hearing of the credit institution in which the kredītkomitej is destined to the issue of guaranteed credit of the Fund or guarantee. 23. a credit institution within five working days after the meeting of kredītkomitej presented the Foundation application for compensation (hereinafter: application of refund) (annex 6). The application shall be accompanied by compensation: the compensation calculation 23.1. identity document;
23.2. the decision on the funds of the credit institution's credit guarantee or suretyship contract repayment demand;
23.3. information about credit or guarantee collateral marketing opportunities;
23.4. a copy of the application or a copy of the decision of the Court of Justice, if the credit institution has submitted a claim to the Court for the recovery of the debt or credit or guarantee the worker's insolvency. 24. If the information supplied in the application for compensation is not sufficient to make a decision about the payment of compensation (hereinafter referred to as the compensation decision), the Fund requires additional information to the credit institution, which clarify the rules referred to in paragraph 23 of the information contained in the documents. Additional information provided by the credit institution with five working days of receipt of the request. 25. the Fund within 10 working days of the receipt of the application for compensation be adopted a compensation decision. If you need additional information, the fund adopted the compensation decision within five working days after the receipt of the information requested. 26. the Fund shall determine the amount of compensation under the guarantee agreement, the calculation by the guarantees stipulated in the contract guarantees the interest of the outstanding principal amount of the loan or the guarantee part of calculating compensation on the day. 27. the Fund paid compensation to the credit institution within five working days after the decision of the refund credit or guarantee and before provide you the sales. The Fund paid the entire amount at once or in instalments after the reconciliation with the credit institution. 28. After the payment of compensation, the credit institution shall inform the Fund about the Fund of guaranteed loans or guarantee recovery. Any income, including income on the loan or guarantee security, obtained after compensation costs are distributed between the credit institution and the proportion of the funds specified in the contract of guarantee guarantee percentages. Prime Minister v. dombrovsky Minister of Agriculture j. Dūklav annex 1 Cabinet on July 7, 2009. Regulations No 746 guarantee maximum amount and the maximum aid intensity for one event no PO box measures Eligible activities Guarantee the maximum level of one activity the maximum aid intensity or the maximum aid (de minimis thousand. Ls) thousand. Ls% of loan 1. Modernisation of agricultural holdings 1.1. investments in agricultural products intended for the manufacture of new equipment, technique, equipment, information technology and software purchase and installation 120 60

40-60% 1.2. agricultural production facility construction, reconstruction and purchase of building materials you need 300 70 40-60% 2. Agricultural added value 2.1. investment in agricultural products intended for the manufacture of new equipment, technique, equipment, information technology and the acquisition and installation of software designed for the processing of agricultural products 25-40% 120 50 2.2. agricultural products processing structures construction and reconstruction of 25-40% 120 60 2.3. investments in the field of environmental protection to improve the overall performance of the company 100 50 25-40% 3. aid to young farmers new farming 3.1 founding of 80-100 50 100% 3.2. transposition of the existing farm property in the 80-100 50 50 4. Vocational training and information services, training and information activities according to the needs of the sector (agriculture, forestry and food processing), including training courses, seminars, workshops, demonstration projects, training material preparation and distribution, as well as other activities 70 70 100% 5. Agricultural and forestry infrastructure development and adjustment 5.1. reclamation system construction and reconstruction 30
50 40-60% of the farm Road 5.2 construction or reconstruction of the agricultural production 50 50 40-60% of objects 5.3. area for construction or reconstruction of buildings on agricultural production 40 30 50 – 60% 5.4. external water supply and electrical supply systems or 40 50 40-60% reconstruction 5.5 drainage system reconstruction and renovation of wooded land 30 50 40-60% 6. Fisheries and aquaculture measures 6.1 fishing and aquaculture measures 50 50 21 6.2. working capital replenishment 158 80 21 * 7. other activities in the field and agricultural development 7.1. producing farm purchases (except animal and agricultural land acquisition) 100 50 40-60% 7.2. acquisition of agricultural land 100 50 10% 7.3. highly productive animal purchase 30 50 * 5.3 7.4. permanent installation under 30 50 40-60% 7.5. working capital replenishment in the primary agricultural producers 50 60 * or * 5.3 140.5 7.6. working capital replenishment for agricultural service cooperatives and agricultural product processing 500 80 140.5 * 7.7 working capital replenishment services to make the agricultural cooperatives recognized as appropriate in accordance with the Cabinet of Ministers of 13 November 2007 Regulation No 777 "rules for agricultural service cooperatives the necessary documents for registration and screening of this public support" and that net sales in the previous year exceeded 5 000 000 lats, as well as a number of members of an agricultural service cooperative society at the time of submission of the application shall not be less than 70 agricultural producers 1 054 80 * guarantee concerning 140.5 7.8. loans to rural and agricultural development measures promoting restructuring 500 70 ** 140.5 * 4.9. rural tourism and craft activities in the promotion of other 50 50 140.5 7.10. events and activities related to rural and agricultural development, the diversification of activities, or 5.3 70 50 140.5 8. guarantor the guarantee guarantee provided for merchants that support the it field day log on to support the holding of the common field of st policy implementation activities 8.1. European Commission program-delivery of food to the most deprived persons 3 500 80 *** 8.2. export refunds (only If he logged in for payment of the refund in advance under the Commission of 15 April 1999, Regulation (EC) No 800/1999 laying down common detailed rules for the application of the system of export refunds on agricultural products) 500 80 *** 8.3. the buying-in of butter market intervention 500 80 *** 8.4. the buying in of skimmed-milk powder market intervention 500 80 *** 8.5. private storage (only if he logged in for payment of the refund in advance under the Commission on 20 august 2008, Regulation (EC) no 826/2008 laying down common rules on the granting of aid for certain agricultural products for private storage) 500 80 *** notes. 1. Maximum de minimis aid per beneficiary over three years. 2. the maximum level of Guarantee together with the previously issued guarantees. 3. Eligible activities that do not involve State aid. 4. Special assisted regional development loans taken guarantees the maximum amount may be increased by 10%. 5. If you have assigned one credit for the implementation of several activities, the guarantee shall be determined as the sum of all activities defined the extent of the guarantee and the guarantee calculated according to the percentage of the loan.
Minister of agriculture j. Dūklav in annex 2 of the Cabinet on July 7, 2009. Regulations No 746 application for receipt of the guarantee of Agriculture Minister j. Dūklav in annex 3 of the Cabinet on July 7, 2009. Regulations No 746 farming Minister j. Dūklav in annex 4 of the Cabinet on July 7, 2009. Regulations No 746 of aid intensity calculation methodology according to the intensity of the aid methodology uses the following formula: aid intensity% * * = ((((x × y × r) : (1 + a) t-1): m)) × 100 where: x x-credit or guarantee about who attracts guarantee; y – guarantee% of the loan amount; r – risk factor determined in accordance with annex 5 of these regulations; a-the reference rate; t-warranty period (years); m – the fee for guarantee issue. The notes. 1 the reference rate applied by the European Commission's communication on the reference and discount rates, methods of determination review (Official Journal of the European Union, on 19 January 2008, no C14) (http://ec.europa. eu/comm/competition/state_aid/legislation/URreference_rates.html). 2. If the aid intensity is less than 1, the amount of aid is equivalent to zero.
Minister of agriculture j. Dūklav in annex 5 of the Cabinet on July 7, 2009. Regulations No 746 charges for the granting of the guarantee no BC Risk factors and evaluation 1. Warranty 1.1. number of years to 1 year from 1 year to 3 years 3 to 5 years from 5 to 8 years more than 8 years 1.2 percent 0 0.1 0.2 0.3 0.4 2. the total amount of the guarantee fund (thous. Ls) 2.1 the customer to 20 from 20 to 50 from 100 up to 100 from 50 to more than 200 200 2.2. related credit or guarantee for a group of up to 40 workers from 40 to 100 from 100 to 200 from 200 to 400 more than 400 2.3.0 3.0.05 0.1 0.15 0.2 per cent equity share in balance sheet 3.1. share (%) greater than 60% less than 60% but more than 50% less than 50%, but more than 40% less than 40% but greater than 30% less than 30% 3.2 percent 0 0.1 0.2 0.3 0.4 4. cash flow cash flow 4.1 characteristics sufficient cash flow by more than 20% of the reserve for contingencies of sufficient cash flow by more than 10% in the reserve for contingencies of sufficient cash flow by more than 5% of the reserve for contingencies in the planned cash flow likely but no contingency reserve the planned cash flow is not sufficiently justified. Possible payment delays 4.2.0.05 0.1 0.15 0.2 5.0 per cent management and reputation 5.1. characterisation of long experience in the industry and an impeccable reputation for long lasting experience in the business, but the industry is not a good reputation sufficient experience, but not a satisfactory credit history economic activity does not take place in a systematic manner, without accurate records are in economic activity in the 5.2 percent of Agriculture Minister 0.05 0.15 0.2 0.3 0 j. Dūklav in annex 6 of the Cabinet on July 7, 2009. Regulations No 746 farming Minister j. Dūklav in