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Law financing decentralised authorities

Original Language Title: Wet financiering decentrale overheden

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Law of 14 December 2000, laying down new provisions on the financing of public bodies (Financing of Local Government Financing)

We Beatrix, at the grace of God, Queen of the Netherlands, Princess of Orange-Nassau, etc. etc. etc.

All those who will see or hear these read, saluut! do know:

In this regard, we considered that changing circumstances and new insights into the financing policy of public bodies would be desirable to lay down new rules for the revision of the financing of the law. local government;

In this way, we, the Council of State, and with the mean consultations of the States-General, have been well-regarded and understood to be right and to be understood by the following:


Article 1

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For the purposes of this Act and the provisions based thereon, the following definitions shall apply:

  • a. public bodies:

    • 1 °. provinces;

    • 2 °. municipalities;

    • 3 °. Waterboards;

    • 4 °. bodies with legal personality, established with application of the Common Arrangements Law ;

    • 5 °. By designating Our Ministers other bodies and organs established by law;

  • b. rentetypal maturity: the time interval during the term of a money loan, in which the loan terms of the money loan involve a constant interest rate that is not affected by the lender of the money loan;

  • c. financial derivatives: financial instruments embodied in contracts that specify the conditions against which a transaction will or may occur at any given time and the value of which depends on one or more underlying assets, reference prices or indices;

  • d. net current debt: the common amount of:

    • 1 °. the funds raised with an original interest-rate period of less than one year;

    • 2 °. debt in current account;

    • 3 °. the funds from third parties paid in cash for a period of less than one year to be kept in cash; and

    • 4 °. other remitsof loans not included in fixed debt; reduced by the common amount of:

    • 5 °. cash cash in cash;

    • 6 °. Balances in current accounts; and

    • 7 °. Other outstanding funds with an interest-type maturity of less than one year;

  • Average net current debt per quarter: the average of the net current debt on the first day of each month in the relevant quarter;

  • f. cash-money limit: an amount equivalent to a percentage of the total annual budget of the public body at the beginning of the year;

  • g. fixed debt interest rate risk: degree in which the balance of interest expense and interest income of a public entity changes by changes in the interest rate on loans and deposits with an initial interest rate maturity of one year or longer;

  • h. the interest rate standard: an amount equivalent to a percentage of the total public body's total budget total at the beginning of the year;

  • i. Supervisor: the administrative body entrusted with the supervision of the budget of a public entity under any legislation;

  • j. Our Ministers:

    • 1 °. Our Minister of Finance and Our Minister of Internal Affairs and Kingdom Relations if it concerns the bodies and bodies referred to in subparagraphs (a) (1 °), 2 ° and 5 °;

    • 2 °. Our Minister of Finance and Our Minister of Infrastructure and the Environment if it concerns the bodies as referred to in point (a), below 3 °;

    • 3 °. Our Minister of Finance and Our Minister of Internal Affairs and Kingdom Relations if it concerns the bodies and bodies referred to in subparagraph (a) (4), as well as our Minister of Infrastructure and the Environment, in so far as they are included in subparagraph (a); participating bodies and organs referred to in 4 °, and taking part in the water supply;

  • k. budget total: the total burden on the budget.


Article 2

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  • 1 Public bodies may borrow, turn off funds or grant guarantees exclusively for the purposes of the exercise of the public service task. For the remainder, they shall retain their liquid assets in the State Treasury.

  • 2 Resources that a public body holds in the State Treasury shall remain available for the exercise of his public service task.

  • 3 By way of derogation from the first member, public bodies may expel their cash in the form of loans from other public bodies, except that public bodies may not grant loans to public entities in respect of of which they are responsible for financial supervision. The rules of our Ministers shall lay down detailed rules on these loans.

  • 4 By arrangement of Our Ministers, certain resources may be exempted from the obligation to hold them in the State Treasury.


Article 2a

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  • 1 Public sector entities can only enter and provide financial loans, or fulfil obligations arising out of money loans in respect of the payment of interest and repayment only if the loans meet the requirements of the financial institutions. for that purpose, rules to be laid down by general management.

  • 2 Public bodies may handle derivatives or the Article 2 (4) , ring out the excluded means if these derivatives or evictions have a prudent nature and are not aimed at generating income by running excessive risk. Detailed rules shall be laid down for the implementation of this paragraph on the basis of a settlement of our Ministers.

  • 3 Public bodies in favour of staff or political office holders do not enter into contracts in respect of mortgage loans or guarantees on the provision of mortgage loans by financial institutions.


Article 2b

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  • 1 Public authorities receive interest on the liquid assets they hold in the State Treasury. The interest rate cannot be negative.

  • 2 Public bodies shall have a current account and contract with the State of the Netherlands, which shall be automatically established on the date of receipt of this Agreement by the relevant public body. The agreement is in accordance with the model agreement, which is decided upon by our Minister of Finance after consultation with Our Ministers.

  • 3 Our Minister of Finance may, after consultation with Our Ministers, lay down rules regarding the implementation of this article.


Article 3

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  • 1 Our Ministers shall set a percentage for the calculation of the cash-money limit by means of a ministerial arrangement. Our Ministers shall, once every three years, send to the States-General a report on the level of the percentage referred to in the first sentence.

  • 2 For the cash-money limit, a minimum amount of € 300 000 shall be applied.

  • 3 Our Ministers may fix a minimum amount by means of ministerial regulations than the amount referred to in paragraph 2.

  • 4 The rate to be determined on the basis of the first paragraph for the cash-money limit and the minimum amount to be determined on the basis of the third paragraph may be different for the different categories of public sector bodies.

  • 5 The public authority supervisor, intended to Article 1 (a) (5) , after consultation with the management of the common system, may set a different rate for the cash-money limit for a common scheme.


Article 4

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  • 1 The average net-current debt per quarter of a public body does not exceed the cash-money limit.

  • 2 If a public body for the third consecutive quarter exceeds the cash money limit, it puts the regulator informed, and submits quarterly reporting and a plan to remain within the cash-money limit for approval. to the supervisor.

  • 3 As long as the plan referred to in paragraph 2 has not been approved or if it is found that the plan is not implemented, the supervisor may give an indication to submit a revised plan and to take measures to ensure that the plan is not implemented. comply with the cash-money limit. The supervisory authority may also provide that any new repayments of money with an original interest-rate maturity of less than one year require prior authorisation from the supervisor. In doing so, the supervisor may set a maximum level of public body debt taking into account the public body commitment at that time.

  • 4 The supervision referred to in paragraph 3 shall cease as soon as the plan referred to in the third paragraph is sufficiently implemented in the opinion of the supervisor.

  • 5 The supervisor may waive the obligation set out in paragraph 1 for a period of up to two quarters in the case of occasional changes to the revenue and expenditure pattern. The exemption may be subject to rules and restrictions.


Article 5

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  • 1 Our Ministers shall set a percentage for the calculation of the rate of interest and a minimum amount for the interest rate at ministerial level, as well as rules on the determination of the interest rate risk in the budget total.

  • 2 The percentage of interest rate and minimum amount to be determined on the basis of the first paragraph may be different for the different categories of public bodies.


Article 6

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  • 1 The interest rate risk in the budget total of a public body does not exceed the interest rate limit.

  • 2 The supervisor shall, if a public body fails to comply with the first member, gives the public body a designation to take measures to reduce the interest rate risk in the budget total.

  • 3 If the public body does not comply with the appointment of the supervisor as referred to in paragraph 2, the public body shall submit a plan for approval to the first member for approval. Until such time as this plan has been approved or if it appears that the plan is not implemented, the supervisory authority may provide that prior authorisation from the supervisory authority is required for the purpose of entering into the budget.

  • 4 The prior surveillance, referred to in paragraph 3, shall cease as soon as the plan referred to in paragraph 3 is sufficiently implemented in the opinion of the supervisor.

  • 5 The supervisory authority may waive the obligation laid down in paragraph 1. The exemption may be subject to rules and restrictions.


Article 7 [ Expired by 14-12-2013]

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Article 8

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  • 1 Our Ministers shall lay down rules on the calculation and provision of information by the public bodies of information required for the purpose of monitoring compliance with or pursuant to this Act.

  • 2 The data shall relate only to:

    • a. Liquidity and debt position;

    • b. Deposit received;

    • c. The cash-money limit;

    • d. the interest rate risk on the budget total;

    • e. the renterisiconorm;

    • f. Money loans contracted;

    • g. evictions;

    • h. guarantees granted in respect of fulfilment of obligations arising out of money loans; or

    • i. the EMU balance of public bodies.


Article 9

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Within five years of the entry into force of this Act, our Ministers shall send to the States-General a report on the effectiveness and effects of this law in practice.


Article 10

Compare Versions Save Relationships (...) (External Link) Permanent Link [ Red: Change the Province Act.]

Article 11

Compare Versions Save Relationships (...) (External Link) Permanent Link [ Red: Modid the Municipal Act.]

Article 12

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Article 13

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The Local Government Financing Act is repealed.


Article 14 [ Exposition by 15 -12-2013]

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Article 15

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This Law shall enter into force on a date to be determined by Royal Decree.


Article 16

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This law is cited as: Law financing decentralized authorities.

Burdens and orders that it will be placed in the Official Gazette, and that all ministries, authorities, colleges and officials who so concern will keep their hands on the precise execution.

Given in Gravenhage, 14 December 2000

Beatrix

The Minister of Finance,

G. Zalm

The Minister of Home Affairs and Kingdom Relations,

K. G. de Vries

The Secretary of State for Transport and Water,

Mr. J. M. de Vries

Published on the 21st of December 2000

The Minister of Justice,

A. H. Korthals