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RELEVANTS ASPECTS OF THE DECREE WITH VALUE RANGE AND THE FORCE OF LAW OF ATTENTION TO THE AGRICULTURAL SECTOR

This Decree with Value Range and Force of Law for Attention to the Agricultural Sector, it has the purpose of establishing the rules that will regulate the benefits, payment facilities, restructuration and complete or partial remission, of the agricultural financing, granted to debtors to the agricultural sector, taking into consideration the emergency situation that has affected the mentioned sector since 2007; all of this with the purpose of contributing to the recovery, expansion and diversification of the national agricultural production, livestock and fish shops.
Are subjects of this law, all the people and legal entities who were granted agricultural credit with the purpose of planting, purchase of inputs, machinery, equipments, livestock, construction and infrastructure improvement, as well as the revitalization of collection centers and working capital, all with the aim of contributing to the national production of certain items specified in the article 2 of the law, which are: Grains, like rice, corn, sorghum; Tropical Fruits, such as Bananas, Citrus and Melon, Vegetables: Tomatoes, Onions and Paprika; Rubs and Tubers such as Cassava, Potato and Sweet Potato; Grains and Legumes: Eyed Peas, Beans and Pigeon Pea; Textiles and Oilseeds such as Oil Palm, Soybean, Sunflower and Cotton.

To this end, the benefits and Facilities accorded to the subject of the above-mentioned decree with value range and the force of law are:
1.- Restructuring of the Debt Relief credit that was granted for the purpose of contributing to the production of the items specified in the article 02 of the aforementioned law, when they are due at moment this law enters into force, or even when they are in force for that date as long as the debtor proves that through no fault of their own, they don`t have the resources to pay the debt. To such effects the law defines as RESTRUCTURING as the agreement between the creditor and debtor of an agricultural credit, in order to establish better conditions of payment the obligations, in such a way that could revitalize their productive activity.
On the other hand, the same law defines the REMISSION as the voluntary resignation by the Universal Banking or the Commercial Banking, to the rights of credit that it has against the debtor of an agricultural credit, freeing if from the total obligation or a partial exemption;
And;
2.- Its understood that, the debtor of an Agricultural Credit lacks economic capacity to meet the obligations with the Universal Banking or with Commercial Banks, Publics or Privates, or when if paying the obligation encumbers their property necessary to satisfy his needs and his family’s needs, so the creditor of that obligation will be granted the benefits or facilities set forth in the mentioned law, taking into account the particular conditions of the author, using the procedures developed in the law.

One of the modifications in the above-mentioned decree – law in comparison, with the repealed 2011, it has to do with the time limit for the payment of the restructured credit, which was increased to a maximum of 12 years, counted from the date of grant of the restructuration’s benefit. This law also establishes a minimum whereby the Universal Banking and the Commercial Bank, public or private, creditor of an agricultural credit, could establish the interest rates charged for the benefits or facilities grant to agricultural credit’s debtor, which cannot be less than 9%.

PROCEDURE: Once submitted the request to the Universal Banking or Commercial Bank, public or private, it will respond to it within twenty-one (21) business days after you have made a corresponding assessment of conditions and situations of each applicant, who must be notified of the decision. In case of that the Universal Banking or the Commercial Bank don’t notified to the applicant, this should be considered as acceptance of the application.

However, it is important to note that in cases of refusal to that application by the Universal Banking or Commercial Bank, it should notify to the applicant and also to the Follow-up Committee for Agricultural Portfolio, with the motivated act of that decision, which will have a maximum period of thirty one (31) business days from the date of receipt of the notification together with the applicant’s file, to render a judgment on it, and may revoke or confirm that decision. In any case, if the Follow-up Committee for Agricultural Portfolio considers that it should proceed with the request for rescheduling or cancellation, the banking institution that has denied it must abide by it, because that Committee is the highest authority that regulates that subjects and it decisions depleting the administrative way.

Finally it is important to mention that this Decree it’s a special law that regulates or benefits to those people, farmers and producers affected by the rains that hits some regions of our country, should remain in force only for a year (01) from the date of it publication.