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Law No. 231 Of 13 July 2005 On Stimulating Investments In Agriculture

Original Language Title:  LEGE nr. 231 din 13 iulie 2005 privind stimularea investiţiilor în agricultură

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LEGE no. 231 231 of 13 July 2005 (* updated *) on stimulating investment in agriculture, food industry, forestry, fish farming and non-agricultural activities * *) ((updated until 25 May 2007 *)
ISSUER PARLIAMENT




------------- *) The initial text was published in the OFFICIAL GAZETTE no. 608 608 of 13 July 2005. This is the updated form of S.C. "Territorial Center of Electronic Computing" S.A. Piatra Neamt until May 25, 2007, with the modifications and additions made by: ORDINANCE no. 51 51 of 30 August 2006 ; EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 ; LAW no. 506 506 of 28 December 2006 ; LAW no. 140 140 of 21 May 2007 . **) The title of this law has been amended by item 1 1 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. The Romanian Parliament adopts this law + Article 1 (1) In order to stimulate the development of investments in agriculture, food industry, forestry, fish farming, as well as in other non-agricultural activities, the Ministry of Agriculture, Forestry and Rural Development for lending to investments, hereinafter referred to as the Fund. ---------- Alin. ((1) of art. 1 1 has been amended by section 2 2 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. (2) The Fund shall be constituted from the allocations approved by the state budget with this destination at the disposal of the Ministry of Agriculture, Forestry and Rural Development and shall be reconstituted from the amounts reimbursed and from the interest paid by the institutions credit, according to this law. + Article 2 The fund is managed by the Ministry of Agriculture, Forestry and Rural Development, under the law. + Article 3 ((. The Fund shall be used for: a) the granting of credits to the beneficiaries provided in art. 6 6; b) covering the costs of preparing the technical-economic documentation for granting credits; c) granting of grants, calculated as a percentage of the volume of credit granted to beneficiaries of loans (2) The Fund may also be used in addition to the amounts necessary for the co-financing of investment projects financed from non-reimbursable funds under Community and national programmes or in addition to loans granted by credit institutions in own sources. -------------- Alin. ((2) art. 3 3 has been amended by section 1 1 of the single article of LAW no. 140 140 of 21 May 2007 , published in MONITORUL OFFICIAL no. 348 348 of 22 May 2007. + Article 4 The fund will be accessed and run, in accordance with the methodology approved by the Ministry of Agriculture, Forestry and Rural Development, by the following institutions selected by this ministry: a) commercial banks and other credit institutions authorized according to the provisions Law no. 58/1998 on banking, republished; b) financial institutions whose main activity consists in carrying out one or more of the financial activities referred to in art. 11 11 para. 1 lit. b)-l) of Law no. 58/1998 , republished. + Article 5 (1) The Ministry of Agriculture, Forestry and Rural Development allocates amounts from the fund to the selected institutions, based on the working conventions concluded with them, for the purpose of granting credits, under the following conditions: a) the maximum repayment term: up to 10 years; ---------- Lit. a) a par. ((1) of art. 5 5 has been amended by section 4.2 3 3 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. b) maximum ceiling: according to the request of the selected institution and within the resources allocated to the Ministry of Agriculture, Forestry and Rural Development; c) grace period for loan beneficiaries: between 1 and 5 years, depending on the specifics of the investment project. (2) In the conventions concluded with the selected institutions will be provided the amounts allocated and allocated, the terms of restitution, the conditions of the loan and other conditions. (3) The access of the institutions referred to in 4 to the resources of the fund is made by auction, under the conditions of this law and its implementing rules. (4) The selected institutions will grant loans from the fund to the beneficiaries of credits, in accordance with the norms developed in application of the provisions of this law, as well as with their own + Article 6 They can benefit from loans for investments in agriculture, food industry, forestry, fish farming, as well as in non-agricultural activities the following categories of applicants: -------------- The introductory part of art. 6 6 has been amended by section 4.2 4 4 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. a) individual agricultural producers registered in the Register of agricultural holdings; b) family agricultural associations, associations of agricultural producers, producer groups and agricultural cooperatives, established according to the legislation in force; c) private agricultural companies, namely agricultural associations with legal personality, constituted according to the legislation in force; d) commercial companies with private capital, constituted according to the legislation in force. e) natural persons authorized according to the legislation in force; -------------- Lit. e) of art. 6 6 was introduced by section 4.2. 5 5 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. f) holders of forests and their associations; -------------- Lit. f) of art. 6 6 was introduced by section 4.2. 5 5 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. g) local councils. -------------- Lit. g) art. 6 6 was introduced by section 4.2. 5 5 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. + Article 7 The Ministry of Agriculture and Rural Development establishes annually the types of investments that can benefit from credits under the present law and the maximum level of credits granted by the selected institutions. -------------- Article 7 has been amended by section 7. 2 2 of the single article of LAW no. 140 140 of 21 May 2007 , published in MONITORUL OFFICIAL no. 348 348 of 22 May 2007. ---------- Article 8 was repealed by point (a). 7 7 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. + Article 9 The time limits for the repayment of the loans and the interest payments thereof shall be established by negotiation between the beneficiaries of the credit and the institution selected, depending on the destination of the credit and the period of recovery of the production Credited investment. + Article 10 Loans granted under the provisions of this law can be guaranteed by guarantee funds and/or by the borrower by: certificates of deposit, real guarantees on animals, agricultural machinery and machinery, mortgage on buildings and land agricultural, plantations or any other guarantees agreed by credit institutions. + Article 11 ((1) Beneficiaries of loans for investments in agriculture and food industry, ineligible to obtain non-reimbursable financing from community funds that develop activities whose indicators of technical-economic performance respect the provisions of the business plan, can benefit from a reduction of the amount to be repaid, calculated as a percentage of the volume of the ---------- Alin. ((1) of art. 11 11 has been amended by section 8 8 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. (2) The level of the reduction of the amount to be reimbursed ((1) may be up to 50% of the volume of the credit granted, differentiated according to the type of investment project. The level of this reduction, the conditions and the way of granting are established and approved periodically, by Government decision, at the proposal of the Ministry of Agriculture, Forestry and Rural Development. ---------- Alin. ((2) art. 11 11 was amended by the single article of LAW no. 506 506 of 28 December 2006 , published in MONITORUL OFFICIAL no. 8 8 of 5 January 2007. ((3) Amounts for granting discounts shall be ensured from the Fund. + Article 12 In the case of investments ineligible for non-reimbursable financing from community funds, the cost of drawing up the loan documentation shall be borne from the fund and shall not exceed 3% of the volume of the loans granted. ---------- Article 12 has been amended by section 4.2. 9 9 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. + Article 13 (1) The unused amounts from the fund at the end of each year, employed by the Ministry of Agriculture and Rural Development with the institutions selected and highlighted in the special account of the fund opened with the State Treasury, at the disposal of the Ministry of Agriculture and Rural Development, shall be carried over to the following year and shall be used to cover the obligations arising from credit agreements concluded by commercial banks, credit institutions or financial institutions referred to in art. 4 with the categories of applicants provided for in art. 6, within the limits of the amounts provided in the working conventions between the Ministry of Agriculture and Rural Development and the selected institutions. ((2) Amounts existing at the end of each year, arising from loan repayments and interest payments on loans granted and highlighted in the special account of the fund opened with the State Treasury, at the disposal of the Ministry of Agriculture and Rural Development, shall be carried over to the following year and shall be used for the granting of new credits under the conditions of this Law. ((3) Amounts representing due credit rates and interest payments thereof, reimbursed by the beneficiaries of the credit for investments in agriculture, food industry, forestry, fish farming, as well as in non-agricultural activities, existing in the accounts of the institutions selected at the end of the current year, shall be transferred until December 20 in the special account opened with the State Treasury, at the disposal of the Ministry of Agriculture and Rural Development, shall be carried over to the following year and shall be uses for the granting of new credits under the terms of this Law. -------------- Article 13 has been amended by section 1. 3 3 of the single article of LAW no. 140 140 of 21 May 2007 , published in MONITORUL OFFICIAL no. 348 348 of 22 May 2007. + Article 13 ^ 1 (1) If the beneficiary of loans records arrears on the repayment of loans and on the payment of interest related to them, the selected institution will return these amounts from own funds to the Ministry of Agriculture and Rural Development. (2) In the case of the finding by the Ministry of Agriculture and Rural Development that the selected institutions paid undue amounts to the beneficiaries of credits through the drawing requests, the selected institutions have the obligation to return these amounts from own funds, within 10 days from the date of notification, in the special account of the fund opened with the State Treasury, at the disposal of the Ministry of Agriculture and Rural Development. -------------- Article 13 ^ 1 was introduced by item 1. 3 3 of the single article of LAW no. 140 140 of 21 May 2007 , published in MONITORUL OFFICIAL no. 348 348 of 22 May 2007. + Article 14 (1) The beneficiaries of loans for investments in agriculture, food industry, forestry, fish farming, as well as in non-agricultural activities have the obligation to respect the destinations for which the loans were granted. ---------- Alin. ((1) of art. 14 14 has been amended by section 10 10 of art. I of EMERGENCY ORDINANCE no. 127 127 of 21 December 2006 , published in MONITORUL OFFICIAL no. 1.042 1.042 of 28 December 2006. (2) The change of the credit destination by the credit beneficiaries shall be sanctioned according to the legislation in force. + Article 15 Within 45 days from the date of entry into force of this Law, at the proposal of the Ministry of Agriculture, Forestry and Rural Development, the Government will adopt methodological norms for its application. This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (2) of the Romanian Constitution, republished. p. CHAMBER OF DEPUTIES PRESIDENT, DAN RADU RUSANU SENATE PRESIDENT NICOLAE VACAROIU Bucharest, July 13, 2005. No. 231. ----