Decree No. 137 / 1968 Coll.
Decree of the Ministry of Finance on financial, credit and other assistance to cooperative and individual housing
Valid
Effective from 16.10.1968
137
DECLARATION
Ministry of Finance
of 3 October 1968
on financial, credit and other assistance for cooperative and individual housing construction
The Ministry of Finance, in agreement with the State Price Office, the State Bank of the Czechoslovak and participating Central Authorities and the authorities, pursuant to § 88 (1) and § 391 (2) of the Economic Code No. 109 / 1964 Coll., § 6 (5) of the Act No. 117 / 1965 Coll., on the State Bank of the Czechoslovak Republic, § 508 (1) of the Civil Code No. 40 / 1964 Coll., § 20 of the Act No. 8 / 1959 Coll., laying down basic rules on the State Budget and on the management of budgetary resources, and § 7 of the Decree No. 47 / 1967 Coll., on prices:
Scope
This Decree applies to cooperative housing construction started on 1 January 1969 and to individual housing construction carried out on the basis of a building permit issued on 1 January 1968; Paragraph 12 (7) shall apply provided that the agreement establishing the right of use of the land is concluded after the date of application of this decree.
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Housing construction work
Contribution
(1)
(a) The State grants a contribution to the construction housing cooperatives ("cooperative") for each apartment of 8100, - Kčs and for each m2 of utility area *) of the housing in the respective house of 1055, - Kčs, if the construction is carried out by supplier, or 975, - Kčs, if the construction is carried out by self-help. * *)
(b) In order to cover the price increases in areas with difficult production conditions * *), the rates of contributions per m2 of the commercial area of the flats referred to in (a) shall be increased:
- for construction carried out in a supplier's way by 160, - Kčs in Prague, 90, - Kčs in Brno and 60, - Kčs in designated districts *);
- for construction carried out by self-help of 50, - Kčs in Prague, 30, - Kčs in Brno and 20, - Kčs in designated districts.
(c) However, where the area of use exceeds 85 m2, it shall not be taken into account when determining the contribution referred to in (a) or (b).
(2) If the cooperative sets up flats by adjusting the non-residential premises or by building or extension in existing buildings of socialist organisations, a contribution shall, as a general rule, be granted equal to 50% of the budgetary construction costs, project costs and direct engineering costs, up to a maximum of the amount corresponding to the contribution which would have been due under paragraph 1 to the same number of flats with the same utility area when building new residential buildings.
(3) The contribution to cooperative housing is provided by the Regional National Committee (National Committee of Prague, National Committee of Slovakia Bratislava) or by the National Committee designated by it (the National Committee); in Brno, Ostrava, Pilsen and Košice, this competence is for the local national committee.
(4) The national committee shall decide on the contribution at the request of the cooperative. The financing branch of the State Bank transfers the Czechoslovak contribution to the cooperative's investment account gradually after the cooperative's own funds have been exhausted for construction (membership shares in money).
(5) In order to cover the contributions for cooperative housing included in the national economic development plan, special-purpose subsidies are granted to national committees from the state budget.
Special contribution
(1) The National Committee grants a special contribution to the cooperative, in addition to the contribution provided for in Article 2, if higher costs for the construction of a cooperative housing house are due to the need to carry out on-site construction under exceptional conditions of incorporation, atypical manner, installation of gaps, construction of specially adapted apartments for disabled persons, etc. However, when deciding to grant a special contribution, it shall take into account the potential advantages of higher costs to the cooperative (members of the cooperative).
(2) The National Committee grants a special contribution to the cooperative to cover costs which are not included in the budget cost of the apartment in the apartment house * *) and concern facilities which become the property of the cooperative, provided that such costs have not been incurred by the cooperative's requirements for location, equipment or construction solutions. This contribution may be granted by the National Committee for special-purpose state subsidies for technical and civil housing equipment.
(3) Paragraph 2 (4) applies mutatis mutandis to the arrangements for granting the special contribution.
Long-term investment loan
(1) For cooperative housing, the State Bank provides the cooperative with a long-term investment loan. It is a condition that the financing of the construction is provided by the own funds of the cooperative (members' shares in the money or in the value of the contracted personal or in-kind performance of the cooperative) by an amount equal to at least 30% of the contribution referred to in § 2 (1) and (2) respectively.
(2) The Bank grants loans up to the total cost of construction not covered by the contribution provided for in § 2, § 3, or other contributions, and the cooperative's own funds referred to in paragraph 1. For this purpose, the total cost of construction includes the cost of the project, the engineering activities and the pre-project preparation, unless it is provided free of charge [Paragraph 8 (2) (d)]. However, the Bank may exclude from the lending costs arising from the inefficient solution or construction, the requirements of the cooperative on the location of the construction, etc.
(3) The loan is remunerated at 1%.
(4) The cost of construction is paid out of the loan only after the own funds of the cooperative (s) have been exhausted and the contributions granted to the cooperative under § 2 and 3, or under special rules.
(5) The loan is granted by the Bank on the basis of a request from the cooperative according to its credit conditions, which also provides the necessary supporting documents. The application for a loan shall be submitted by the cooperative with a decision of the National Committee in accordance with Article 2 (4) and (3), respectively, so that the loan can be granted before construction begins. at the same time, the cooperative is obliged to transfer the members' shares, or the part thereof, which is not covered by the contracted personal or material performance of the cooperative, to its account of the members' shares with the bank. The written loan agreement shall specify the more detailed terms and conditions of the loan, the manner in which it is drawn up and its return.
(6) The loan shall be repaid by the same half-yearly instalments covering a maximum period of 30 years. The first half-yearly payment shall be due no more than two years after the date of construction.
Conditions for providing assistance
(1) The condition for providing aid to construction housing cooperatives for the construction of housing and its financing by the Bank is that:
(a) it is an authorised construction, project prepared and manufactured, financially and contractually secured;
(b) a multi-storey apartment building (*) is built with at least 12 flats or in rural municipalities with at least 4 flats, or a modification of non-residential spaces to flats or apartment buildings or extensions in the buildings of socialist organizations.
(2) Assistance may also be provided where, at the request of the cooperative, the national committee, which is the building office, authorises the construction of a multi-storey apartment house with at least 4 flats in the city, except for the provisions of paragraph 1 (b), on grounds of major reasons.
Loan for larger repairs and investment adjustments of cooperative housing houses
If the cooperative does not have sufficient own funds to carry out the necessary material and capacity-guaranteed large-scale repairs or adjustments of an investment nature in the period when it is still paying back a loan under Article 4 of this Decree or a similar loan granted under the former rules, the bank may grant it a special-purpose investment loan payable within 10 years at an interest rate of 3%.
Loan for the construction of garages and small economic accessories
If the cooperative is authorised by the National Committee to build cooperative garages intended for use by members who already live or have lodged a member's share in the housing, the bank may grant a loan of up to 30% of the budgetary construction cost payable up to 5 years at an interest rate of 3% for the construction of the garages. Under the same conditions, the bank may grant a loan for the construction of small-scale economic facilities (e.g. small-scale livestock facilities) if its construction is carried out in connection with the construction of cooperative flats in rural areas.
Other assistance for cooperative housing *)
(1) The cooperative construction of flats, garages and small-scale economic equipment (Section 7) is subject to the same price conditions as for state investment construction, unless otherwise provided for in this Decree or in specific regulations.
(2) Where the cooperative carries out planned construction on a site designated by the National Committee, the National Committee
(a) surrender to the cooperative the necessary building land in a state eligible for construction, not for the cooperative's own land, free of charge to permanent use (Section 70 of the Economic Code);
(b) ensure the connection of the cooperative's housing house to the public network of communication and electrical and water ducts, sewerage, gas and heat ducts within the framework of technical and civil housing facilities; These costs shall be borne by the National Committee from the special-purpose State subsidy to technical and civil housing equipment;
(c) pay for the cooperative any contribution from its own resources for the permanent withdrawal of agricultural land of agricultural production under Act No. 53 / 1966 Coll., on the Protection of the Agricultural Soil Fund;
(d) in the case of concentrated cooperative housing construction, provide pre-project preparation to the cooperative free of charge through the relevant professional organisation.
(3) For works carried out in the construction of housing houses by a cooperative, socialist organisations may, under a temporary use contract, leave to cooperatives the machinery, production facilities or means of transport needed for residential construction or for the production of building materials for such construction outside the period of their intended use, at least to compensate for actual direct costs, * *) for motor vehicles plus depreciation. * * *) This provision can be applied mutatis mutandis if the Socialist organisation conducts a cooperative self-assistance of transport performance or work by building machinery outside the time of their intended use.
(4) Where a cooperative whose members are members of an organisation, the construction of housing houses under its own control, that organisation may provide, in addition to assistance under paragraph 3, the following additional assistance:
(a) in the setting up of construction sites and structures, carrying out construction supervision and providing other technical assistance, if the assistance is provided by the organisation's own staff - or free of charge;
(b) the execution of works, at least for the reimbursement of the total performance costs;
(c) by releasing both qualified and unqualified workers and apprentices for a certain period, at least for compensation for their wages, including sickness insurance,
(d) by lending operating and storage areas free of charge,
(e) organising temporary assistance in construction.
(5) Assistance to the cooperative referred to in paragraph 4 may be provided by organisations in a manner and to an extent that does not interfere with the performance of the planned tasks and maintenance of their essential resources.
(6) On the composition of a member's stake in the cooperative, the State Savings Bank may grant citizens loans due up to a maximum of 10 years at an interest rate of 2,7%.
Bank control
The Bank finances cooperative housing according to the documents it requires from the cooperative and carries out economic control over the construction and management of the cooperative.
Authorisation of exemptions
(1) Where justified, the Bank may, at the request of the cooperative, authorise an exemption from the arrangements for the financing and lending of cooperative housing and lay down specific conditions.
(2) In specific cases, the Ministry of Technology may allow an exemption from the provisions of Paragraph 5 (1) (b).
INDIVIDUAL BUILDING
Assistance provided by socialist organisations
(1) Organisations may grant their employees interest-free loans from their own resources *) for the construction of family houses up to 25,000 CZK, or - if the construction is carried out in the form of group houses (e.g. four houses, at least 4 row, atrium, terraces or similar houses) or in rural municipalities in border counties * *) - up to 35,000 CZK. A loan of up to 35,000 CZK may also be granted if at least two separate apartments are acquired by building a house. The condition for granting the loan is that the construction is carried out in accordance with the concept of long-term development of the settlement. * * *)
(2) Organisations may provide their workers with interest-free loans in accordance with paragraph 1, mutatis mutandis, also for rebuilding, extension, etc., to obtain a new apartment in their family home.
(3) Only one loan under paragraph 1 or 2 may be granted for the construction of a house. However, if several builders jointly implement the construction of a family house with several apartments, the loan referred to in the first sentence of paragraph 1 may be granted to each of the builders by the organisation (s); the number of loans must not exceed the number of flats built. If the joint builders of a family house with one apartment are married, the loan may be granted to each of them, but the sum of the loans may not exceed the amount referred to in the first sentence of paragraph 1.
(4) The organisation, with the agreement of the Revolutionary Trade Union Movement Committee with the builder, shall conclude a contract for granting the loan, in which it undertakes to waive the loan, if the worker stays in the organisation for a continuous period of time (usually 10 years after the grant of the loan), does not sell or transfer the house to another person before the end of the agreed period of time and will live there.
(5) However, the loan granted shall be waived by the organisation even before the end of the contractual period if the builder, in the consequence of an accident of his or her own fault, dies or becomes wholly disabled. If, before the expiry of the contractual period, the builder, for serious reasons, goes to work in another organisation or retires or dies, the organisation may, with the agreement of the Revolutionary Trade Union Movement Committee, forgive, after assessing all circumstances, in particular his work merit and social circumstances, the loan or its appropriate part.
(6) The contractor is obliged to allow the organisation to transfer the loan to its interest-free account at the branch of the State Savings Bank in whose district the house is built.
(7) The organisation may, upon fulfilment of the condition set out in the last sentence of paragraph 1, provide assistance to its worker for works carried out in the construction of a house (its rebuilding, etc.), mutatis mutandis, in accordance with the provisions of Paragraph 8 (3) and (3). 4. Another aid can only be provided for him at valid prices.
Assistance provided by national committees †)
(1) The National Committees may grant citizens an interest-free loan up to 15 000 Kčs, in justified cases in particular in order to stabilise a certain worker in the municipality, up to 25 000 Kčs, subject to the condition set out in the last sentence of Article 11 (1). However, if construction is carried out in the form of group houses or in rural municipalities in border counties, † †) up to 25,000.
(2) The national committees may, mutatis mutandis, grant to citizens interest-free loans under paragraph 1 also for the conversion, extension, etc., of a new apartment in their home.
(3) For the construction of a family house, the National Committee may grant a loan under paragraph 1 or 2 only if a loan has not been granted for construction by an organisation under Paragraph 11 (1) or (2). However, if several builders jointly implement the construction of a family house with several apartments, the loan referred to in paragraph 1 may be granted to each of the builders, provided that it has not received a loan from the organisation pursuant to Paragraph 11 (1); however, the number of loans may not exceed the number of built-up flats. In order to support the construction of group houses, the National Committee may grant an additional interest-free loan of up to 5,000 Kčs to a builder who received a loan from an organisation pursuant to § 11 (1).
(4) The loan is provided by the national committee on whose territory the family house is to be built.
(5) The National Committee will waive the non-profit-making loan referred to in paragraphs 1, 2 or, in accordance with the last sentence of paragraph 3, five years after the authorisation for the use of the house has been granted, provided that the construction was carried out in accordance with the building permit and that the house builder will not sell or transfer to another person before the expiry of that period, or, if necessary, if the worker is interested in stabilising at the site, the national committee will remain in the organisation concerned.
(6) Paragraph 11 (6) and (7) applies mutatis mutandis.
(7) If the builder carries out construction in the form of a group house on a plot designated by the National Committee and not for the construction site, the National Committee shall establish for him the right of personal use up to 400 m2 free of charge.
(8) Where the construction works are carried out on a site designated by the National Committee, the National Committee shall ensure the establishment of access communication to the land (including the pavement) and the extension of the facilities for the public distribution of electricity and, where appropriate, water, gas and sewerage, if the facility is built. The costs associated with this shall be borne by the National Committee from the special-purpose State subsidy to technical and civil housing equipment.
(9) For each separate apartment in a family house, built in accordance with the concept of long-term development of the settlement * *) on the basis of a building permit issued after 1 January 1967, unless a permit for use was issued before 1 January 1969, the builders shall be granted a contribution to the price compensation in the amount of:
- 8,000, - Cds if the building permit was issued after 1 January 1969,
- 5 000, - CZK, if the building permit was issued in 1968,
- 2 000, - Cds if the building permit was issued in 1967;
the grant is subject to the condition that the construction will be carried out in accordance with the building permit. The allowance shall also be granted mutatis mutandis for the reconstruction, extension, etc., which shall be given a new separate apartment in the family home.
(10) The contribution referred to in paragraph 9 shall be granted by the National Committee (Construction Office), which issued the building permit, at the request of the builder. The decision will be sent in a copy to the branch of the Czech State Savings Bank (hereinafter called "Savings Bank"), where the builder has concentrated funds for construction; the savings bank shall pay an interest-free contribution to the builder's account, with the possibility that only the costs associated with the relevant construction may be drawn from it.
(11) If the construction was carried out in accordance with the building permit and the permit to use it was issued after 1 January 1969 within 36 months of the date of issue of the building permit, the savings bank shall pay a further contribution of 4 000, - Kčs to the builder on the basis of the confirmation of the national committee (the construction office). This contribution is mainly used to cover any loan granted to the construction contractor by the savings bank (§ 13). If such a loan has not been granted, the savings bank shall pay this contribution to the builder according to his disposition.
(12) The appropriations for the contributions referred to in paragraphs 9 to 11 shall be made available to the savings bank from the central budget.
Loans granted by the State Savings Facility
(1) The State Savings Bank may grant loans to house builders. Their amount and maturity will be agreed by the State Savings Bank with the builder individually, taking into account the financial collateral of the construction, the loans received by the builder pursuant to § 11 or § 12, respectively, and the payment possibilities of the builder.
(2) The maturity of the loan is set at a maximum of 30 years after the issue of the building permit. The interest rate on these loans is 2,7%, with a group house construction of 1%.
(3) In the case of a cooperative in the family building and construction, the bank shall finance the cooperative until such time as the houses are transferred to the personal ownership of each member at the interest rate specified in paragraph 1. 2. The cooperative is required to demonstrate, before the construction begins, that the funds needed to repay the loan when the houses were transferred to its own personal ownership are provided for by the savings bank in the book held by the cooperative or by the promise of loans from the savings bank or organisation. The contributions granted to individual members under § 12 (9) to (12) shall be referred to the bank for the account of the cooperative.
(4) The State Savings Bank may also provide loans for more expensive repairs, modernization and adaptation of houses and also for builders (their heirs) to cover the loan liabilities referred to in Section 11 (4) or Section 12 (5). The interest rate on these loans is 2,7%.
Assistance to cooperative members for building family houses
Advantages provided to builders of family houses also apply to members of cooperatives for the construction of family houses.
Construction of private-owned residential houses
The advantages granted to the builders of the family houses pursuant to § 11 to 13 of this Decree apply mutatis mutandis to the assistance provided to the builders of residential houses with personal property pursuant to Part One of Decree No. 66 / 1966 Coll., on assistance in the construction of residential houses with personal property and on the sale of flats from national property to citizens. If this decree provides for higher benefits for the construction of group houses, it applies in general to the construction of private-owned housing houses.
Authorisation of exemptions
On a case-by-case basis, the competent central authorities may authorise an exemption from the provisions of § 11 (1) and (2), or regional national committees (National Committee of the City of Prague, National Committee of the City of Brno) from § 12 (1), (2), (5), (9) and (11).
PROVISIONS FINAL
Empowerment
Assistance for cooperative housing and construction of family houses for workers in agricultural and forestry primary production shall be regulated by the guidelines issued by the Ministry of Agriculture and Nutrition and the Ministry of Forestry and Water in agreement with the central authorities involved.
Transitional provisions
(1) The provisions in force until now (Paragraph 19) apply to cooperative housing construction started before 1 January 1969 and to individual housing construction authorised before 1 January 1968, with the exception of 12 paragraph 3 of Decree No. 191 / 1964 Coll. In the case of cooperative housing construction on 1 January 1969, the impact of the adjustment of the prices of construction materials and works in force from 1 January 1969 shall be paid in accordance with Decree No. 61 / 1967 Coll., or Order No. 24 / 1968 Coll. However, the exceptional price premium * * *) is paid to the cooperative only for the volumes of works performed by suppliers.
(2) Paragraph 12 (3), (4) and (5) of Decree No. 191 / 1964 Coll. can be applied until the end of 1970 to self-help cooperative construction for construction workers in Prague. *)
(3) The loan referred to in § 11 (1) and (2) and § 12 (1) and (2) of this Decree may be granted only if the builder has not yet received a similar loan under § 12, 14 or 15 of Decree No. 191 / 1964 Coll. as amended by Decree No. 26 / 1965 Coll.
(4) Paragraph 11 (3) of this Decree may also apply mutatis mutandis to individual construction carried out under Decree No. 191 / 1964 Coll. as amended by Decree No. 26 / 1965 Coll. on the basis of a building permit issued before 1 January 1968.
Repeal provisions
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(a) Decree No. 191 / 1964 Coll., on Financial, Credit and Other Assistance to Cooperative Housing Construction and Construction of Family Houses, as amended by Decree No. 26 / 1965 Coll. and Part III of Decree No. 61 / 1967 Coll.;
(b) Decree No. 3 / 1965 Coll., determining the amount of the State contribution to cooperative housing construction initiated from 1 January 1965, as amended by § 11 of Decree No. 61 / 1967 Coll.;
(c) Decree No. 61 / 1967 Coll., which sets out the amount of the State contribution to cooperative housing construction started in 1967, regulates the amount of the State contribution to cooperative construction established on 1.1.1967 and amends certain provisions of Decree No. 191 / 1964 Coll., on financial, credit and other assistance to cooperative housing and the construction of family houses, as amended by Decree No. 26 / 1965 Coll.;
(d) Decree No. 24 / 1968 Coll., on State contribution to cooperative housing construction started after 1 January 1968.
Efficacy
This decree shall take effect on the day of its publication.
Minister:
Ing. Succharda v. r.
*) The area of use of the apartment is defined here as the area within the meaning of ČSN 73 4301 (without the area of logbooks and balconies).
* *) Guidelines on the definition of the content of the budget load of the apartment in the apartment house are issued by the Ministry of Technology.
*) Housing house means an apartment building or any section of it (i.e. a separate article of the building, forming a functionally and constructively integrated spatial unit, where the apartments are accessible from a common entrance) which must have at least 2 living floors, 1 common entrance, common staircase and at least 4 apartments which are all accessible from common corridors or floor.
*) The fee and tax exemptions of cooperatives (their members) are regulated by specific regulations. It is in particular Act No. 143 / 1961 Coll., on domestic tax, Act No. 24 / 1964 Coll., on notarial fees, Decree No. 25 / 1964 Coll., to implement the Law on notarial charges, Act No. 113 / 1966 Coll., on pension tax for cooperative and other organisations; apartments in the houses of building housing cooperatives are not subject to a local charge on apartments (§ 21 (2) of Decree No. 60 / 1964 Coll., on payment for the use of the apartment and for services related to the use of the apartment); The tax exemption for occasional works on residential construction attributable to the cooperative (member of the cooperative) is set out in Annex 2 (under Article 16) to Decree No 24 / 1967 Coll., implementing the payroll tax law.
* *) Actual direct costs for this purpose are the service wage (driver, driver, driver, etc.) including sickness insurance and the cost of fuel, energy, etc.; maintenance and maintenance costs (or medium) of repairs only if their increase occurs in direct connection with the performance performed.
* * *) This also applies to organisations that are not obliged to write off basic funds.
*) State economic organisations (enterprises) of gross income (profit), which, after fulfilling their obligations and allocations, will be left to funds of a fixed amount under Government Regulation No. 100 / 1966 Coll., on the Planning Management of the National Economy, as amended by Government Regulations No. 83 / 1967 Coll. and No. 16 / 1968 Coll. Budget and contribution organisations can only use incentive funds to support housing.
* * *) These are the following counties: České Budějovice, Český Krumlov, Jindřich Hradec, Prachátice, Domažlice, Cheb, Karlovy Vary, Klatovy, Plzeň-north, Sokolov, Tachov, Česká Lípa, Decin, Chomutov, Jablonec n. Nisou, Liberec, Litoměřice, Louny, Most, Teplice, Ústí n. Labem, Náhřečnov n. Knežně, Semily, Svitavy, Trutnov, Ústí n. Orlicí, Bruntál, Opava, Šumperk. Any changes shall be specified by the Government in the annual plan.
* * *) Decree of the Government of 10 April 1967 No 100 on the procedure for processing the long-term concept of the development of settlements (point III / 3 (b) ad aa) to (cc)).
†) The exemption from home tax is governed by Decree No. 14 / 1968 Coll., on Home Tax Relief.
† †) See footnote * *) to § 11 (1).
*) Government Resolution No 34 / 1966 (paragraph D / 5). The possibility of using financial advantages for cooperative housing construction and the construction and repair of family houses according to the Government resolutions No 378 / 1962 and No 866 / 1963 on the provision of financial and material assistance for the repair and construction of flats in the Uličsko- ubžanská valley area remains intact.
*) The area of use of the apartment is the area within the meaning of ČSN 73 4301 (without the area of logbooks and balconies).
* *) This means the construction that the National Committee has designated to the cooperative as a building of self-help.
* * *) Guidelines of the Ministry of Construction and Heavy Industry of 21.12.1968 no. 3495 / prices / 68 amending and supplementing the guidelines for determining certain secondary budget costs of buildings of 22.12.1966.
*) Guidelines of the Ministry of Construction and Heavy Industry of 21.12.1968 no. 3495 / prices / 68 amending and supplementing the guidelines for the determination of certain secondary budget costs of buildings of 22.12.1966.
* *) See footnote * * *) to § 11 (1).
* * *) Decree of the Ministry of Construction of 21 December 1968 on the change in the prices of construction works on 1 January 1969.
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Regulation Information
| Citation | Decree of the Ministry of Finance No. 137 / 1968 Coll., on financial, credit and other assistance of cooperative and individual housing construction |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 16.10.1968 |
|---|---|
| Effective from | 16.10.1968 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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