Act No. 43 / 1948 Coll.
Agricultural credit Act
Valid
Effective from 10.04.1948
43.
Law
of 21 March 1948
on agricultural credit.
The Constitutional National Assembly of the Czechoslovak Republic decided on this law:
Agricultural credit.
Agricultural credit under this Act means government-guaranteed monetary loans,
(a) farmers (Article 2) for the purpose of measures necessary for the proper operation of agricultural holdings, to make agricultural production cheaper and more efficient and to build up agriculture;
(b) to other persons for the purpose of building facilities generally serving agriculture in agreement with the agricultural production plan, in particular for the development of mechanisms for agricultural work, for the construction of facilities for the evaluation and preservation of agricultural products and for the promotion of the standard of living of the agricultural population.
A farmer under this law shall mean:
(a) a physical person who either exclusively or at least primarily feeds on his own work in his, smelt or otherwise into the use of a given holding of up to 50 hectares of agricultural land (including forest land);
(b) a physical person who, for important personal reasons, in particular for sickness, disability or age, is unable to work personally on his holding on the area of agricultural land (including forest land) up to 50 hectares and has therefore been forced to smuggle it or otherwise give it to another person;
(c) the agricultural production communities (cooperatives), which mainly consist of the persons referred to in (a) or (b), where the activities of those persons consist in direct management of the agricultural cooperative, after the joint holding and use of economic machinery. However, such communities must not itself provide monetary loans from funds obtained under this law;
(d) persons who have been or will be officially entrusted with the management of uncultivated (abandoned) agricultural property at the place of its owners.
The agricultural loan referred to in § 1 is either short-term (operating loan - § 4) or long-term (restructuring, investment and consolidation loan - § 5).
(1) The short-term (operational) agricultural credit serves for measures of basic agricultural operational needs, in particular for seed and seed and prepared fertilisers, as well as for the reimbursement of the costs of procuring machinery.
(2) The maturity of the credit claim referred to in paragraph 1 shall be determined at the latest by the end of the calendar year.
(3) If an exchange has been issued for a short-term loan from an agricultural loan, it should be marked on the upper part of the face as an "agricultural exchange." The maturity of agricultural notes shall not exceed six months; are reesponsible at the normal discount rate of the Czechoslovak National Bank.
(1) The long-term agricultural credit is used to measure funds:
(a) for the renewal of agricultural holdings which have been destroyed after 17 September 1938, significantly damaged or ravaged either by terrorist actions by the organisation of a hostile State or by the temporary occupation of the territory of the Republic of the Czechoslovak authorities of the occupying States or by the authorities acting on their orders or by any act of war or other measure of some warring party, their combat units or members (reconstructive credit), unless the affected has already received any other sufficient credit for that purpose;
(b) for investments to maintain and improve agricultural production, in particular for the necessary or efficient purchase of livestock for farming, for the mechanisation of agricultural work, including electrification and telephony, for agricultural buildings, water and melioration, for the acquisition of the farm or land and for the accumulation of land (investment loan), provided that the guaranteed credit has not been or cannot be provided to a sufficient extent and under more favourable conditions under specific rules;
(c) the debt relief of farmers who are blameless in debt, by adjusting their debts by unification in order to reduce the interest burden and by adjusting the repayment (consolidation loan).
(2) Loans from long-term agricultural credit are granted on a debt note and are amortised in accordance with a regular amortisation plan which is uniform for all cases of such loan. The conditions and method of repayment shall be such that, as the case may be, the claim is repaid in at least five years, at most forty years, subject to the condition that the debtor may also repay the guaranteed loan before the expiry of the contractual period, subject to compliance with the notice period, without being obliged to pay any compensation.
(3) The Ministry of Finance may, under special conditions, authorise monetary institutions to issue, on the basis of claims on long-term agricultural loans, alternative debt bonds that are transferable.
(1) In agreement with the Ministers for Agriculture and Interior, the Minister for Finance will designate and publish in the Official Journal:
1. which monetary institutions and monetary undertakings will grant the agricultural credit, taking into account also the agricultural credit associations (cooperatives) which, according to their statutes, are entitled to grant the credit to farmers;
2. a money institution or a money undertaking which will exercise a central credit agenda and control of agricultural loans and procure funds for purposes under this Act in accordance with the applicable provisions on the concentration of funds and the authorisation of the Czechoslovak National Bank pursuant to § 3, paragraphs 2 and 3 of the Act of 11 March 1948, No. 38 Coll., on the National Bank of Czechoslovakia;
3. Directives for the authorisation (approval) and control of agricultural credit, in particular for determining the maximum capacity of agricultural holdings, taking into account their value, size and yield, and the overall agricultural production plan for the application of the investments to be carried out, as well as for assessing the personal and professional characteristics of the debtor and his other assets, and the Directive on how the credit will be paid and on how advances will be used for the payment of war damage provided under the provisions on the elimination of material damage to the repayment of the reconstruction loan and such.
(2) For the purposes of this Act, the Minister for Finance, in agreement with the Minister for Agriculture, sets out, in the Official Journal, models of special forms, in particular agricultural notes and debits.
(1) The interest rate on loans from agricultural credit, together with the payment of all fees and fees, may not exceed 3 1 / 2% short-term loans, 3% long-term loans.
(2) The interest rate referred to in paragraph 1 may be amended by the Order of the Minister of Finance in agreement with the Minister of Agriculture in the Official Journal, taking into account the discount rate of the Czechoslovak National Bank.
(3) In addition to the interest referred to in paragraph 1, debtors shall be obliged to make a contribution to the farmer for the Agricultural Insurance Fund (Section 11), calculated on the same basis as interest, [Paragraph 13 (c)]:
The Ministry of Agriculture is hereby authorised to assume in an agreement with the Ministry of Finance the State guarantees on the agricultural credit and its accessories.
(1) By taking over the State guarantee, the State represented by the Ministry of Agriculture undertakes to pay the creditor a guaranteed loan with interest and other ancillary transactions up to the actual payment, or part thereof, if it is empty on the schedule of the highest filing, if, with the agreement of the Agricultural Insurance Fund, the creditor is satisfied with the enforcement of the guaranteed claim (paragraph 5), or if the creditor otherwise attests to the failure of his claim.
(2) The obligation of the State to pay pursuant to paragraph 1 shall arise on the 30th day following the date on which the creditor notified the Ministries of Agriculture and Finance of the facts applicable under paragraph 1.
(3) The obligation of the State to:
(a) the loss of the guaranteed debt; the creditor is obliged to notify the termination of the claim to the ministries of agriculture and finance;
(b) where the creditor fails to take care of the provisions in force, commercial practices or conditions laid down.
(4) By paying the guaranteed debt, the State enters the creditor's right.
(5) The guaranteed loan cannot be enforceable without the approval of the Fund. There is no need for consent if the creditor proves that the Fund has refused payment under Paragraph 14.
(1) The long-term loan loan provided for in Article 5 must be secured by a lien and a state guarantee on the property of the debtor, after the case of the property under management [§ 2 (d)].
(2) Creditors of loans secured by a lien on the programme before the lien referred to in paragraph 1 are obliged, irrespective of any other term of repayment, to accept the earlier payment of their claims with the facilities, without any compensation for that reason.
(3) Furthermore, the debtor's property to which the lien referred to in paragraph 1 has been deposited may not be burdened by the library without the permission of the Ministry of Agriculture, unless it is about securing claims on taxes, fees and other public levies and their accessories, or ensuring the inheritance rights of legal heirs.
(4) The limitation provided for in Article 9 (5) and in paragraph 3 shall be registered at the same time as the deposit provided for in paragraph 1.
(5) If a loan from a long-term loan is not paid, a live and dead inventory of agricultural property can be confiscated and sold only with the property itself in Slovakia, to the extent necessary to manage its accessories.
Agricultural hedge fund.
(1) The Ministry of Agriculture in Prague establishes the Agricultural Insurance Fund (hereinafter referred to as the Fund), which is a separate legal person and is subject to supervision under the Act of 20 March 1919, No 175 Coll., on the establishment and competence of the Supreme Accounting Audit Office. The Fund shall set up a separate account for the delegates of agriculture and land reform for the purposes set out in Section 14, to which it shall transfer, as appropriate, a proportion of the appropriations referred to in Section 13.
(2) The Fund shall be headed by a Bureau appointed and dismissed by the Minister for Agriculture in agreement with the Minister for Finance. The Bureau shall be composed of the President, the Vice-President, who shall be the Deputy Minister of Finance in the Fund, representatives of the Ministry of Agriculture and the Agriculture and Land Reform Commission, who shall be appointed from among professional officials, and representatives of the Central Council of the farmers of the Czechoslovak Republic.
(3) The President shall represent the Fund externally; If he is busy, the Vice-President shall represent him.
(4) The Fund shall be exempt from fees and charges for official acts.
(5) The Fund's agenda is managed by the Ministry of Agriculture. The Statute of the Fund and its Rules of Procedure shall be published by the Minister for Agriculture in an agreement with the Minister for Finance in the Official Journal.
(1) The Fund is subject to state supervision by the Government Commissioner appointed by the Minister for Finance. In addition, a representative of the Ministry of Agriculture, appointed by the Minister of Agriculture, shall supervise the department of competence. The Government Commissioner and the representative of the Ministry of Agriculture ensure that the Fund fulfils the obligations imposed on it by this law.
(2) The Government Commissioner may suspend the resolutions and measures of the Fund which he considers to be contrary to the proper exercise of the rights and obligations of the Fund or to the principles of sound management, or to be contrary to the applicable rules on financial, national or agricultural interests, with the effect that such resolutions and measures must be submitted to the Minister of Finance and must not be exercised until they have been decided upon in agreement with the Minister of Agriculture.
(3) The representative of the Ministry of Agriculture shall have the right, in the performance of his duties, to find defects, or to consider that a resolution or measure of the Fund should be stopped for the reasons set out in paragraph 2, to apply the removal of the defects or to stop the resolutions or measures in question with the Government Commissioner.
(4) However, if the Fund is to implement a resolution or measure which has been suspended by the Government Commissioner, it shall be liable for the damage caused by the person who put such a resolution or measure into effect and may be deprived of his office in agreement with the Minister of Finance.
The Fund shall consist of:
(a) the basic amount of 100 million KKS to be provided under the budget of the Ministry of Agriculture for 1948 and from the resources of the National Land Fund at the Ministry of Agriculture for the next five years;
(b) an annual State contribution of up to CZK 75 million if the revenue from other sources is insufficient;
(c) debtors' contributions pursuant to Paragraph 7 (3);
(d) own income (interest on capital, income pursuant to § 14 (3) and (j);
(e) other income (gifts and other free dedication and j.).
(1) The Fund may take over, in whole or in part, within the limits of the provisions of paragraph 2, the payment of claims due on short-term agricultural credit loans and its accessories, and the payment of an annuity to claims on long-term agricultural credit loans for a debtor who is unable to fulfil his obligations:
(a) the failure to pay which was not caused by it intentionally or negligently, for example by non-professional management, speculative activities, vanity, drunkenness or unregulated life at all;
(b) for other serious reasons, such as: natural disasters, catastrophic non-crops and similar unforeseen economic losses, as well as for his illness, injury or the death of cattle and the like.
(2) The Fund may take over the payment referred to in paragraph 1 only for a debtor who maintains the care of a proper operator and only for the period of his insolvency.
(3) If the debtor's circumstances change in such a way that he can reasonably be required to repay the sums paid for him by the Fund, the debtor shall be obliged to repay the sums paid for him by the Fund. That obligation shall expire 10 years after the date of payment of the claim or part thereof referred to in paragraph 1.
County Agricultural Credit Committee.
(1) Reasoned requests for loans with a State guarantee and salaries from the Fund (Section 14) are discussed by the District Agricultural Credit Commission (hereinafter referred to as "the Commission"), which is set up by the District National Committees and the Central National Committees of Statutory Cities; Office and other necessary work shall be provided to the Commission by the competent district (central) national committee with its costs.
(2) The application shall be made on an official form. The application data must be certified as accurate by the local national committee and the local association of the relevant Union of farmers.
(1) The Commission is four members. Its members are:
(a) the chairman of the district national committee which shall chair; it may be represented by another member of the District National Committee, who shall always be an executive farmer, if possible according to the composition of the District National Committee;
(b) a member of the Council of the District National Committee under whose jurisdiction agricultural matters fall;
(c) a representative of the Regional Association of the Union of Farmers, appointed by the Minister for Agriculture on a proposal from the competent Union of Farmers;
(d) a representative of the financial administration appointed by the Minister of Finance in Slovakia after the statement of the delegate.
The representatives referred to in points (c) and (d) shall be appointed in the same manner by one alternate.
(2) The Commission shall take part in the deliberations with the voice of the advisory representative of the district economic and technical service (district agronomist) and of an expert in money, appointed by the chairman of the Commission on the proposal of the financial institutions which are at the seat of the Commission; if necessary, invite representatives of the local national committee of the municipality in which the applicant is resident. Its task is to give an explanation and a good sense of the circumstances that will be taken into account when dealing with the request.
(3) The Rules of Procedure for Regional (Central) National Committees shall apply mutatis mutandis to the proceedings of the Commission.
(4) The term of office of the appointed members of the Committee (alternate members) is essentially three years. Membership therein is honorable; Members shall be entitled to reimbursement of the final expenses incurred by the Office, after the corporation which they have sent to the Commission.
(5) The members of the Commission and the participants in its deliberations, as referred to in paragraph 2, are required to remain silent on matters which have become known in the performance of their duties and to refrain from any evaluation and use thereof. They are not relieved of these duties even after the termination of function.
(6) The members of the Commission will make a promise in the hands of the chairman of the District National Committee if they are no longer bound, as civil servants or public officials, to perform their duties by a promise previously made, to be properly and to the best of their knowledge and conscience and to exercise under this law and to remain silent (paragraph 5).
(7) The members of the Commission shall be liable for damage caused intentionally or negligently to the State, without prejudice to the provisions of Paragraph 22 or the prosecution of a criminal offence.
(1) In particular, the task of the Commission is to establish whether, on a case-by-case basis, the conditions for granting a loan under this Law are laid down, whether the grant of salaries from the Fund will contribute to the achievement of the general objective set out in Paragraph 1 and whether the applicant has no own resources to achieve that objective. The Commission shall establish the amount to which the aid may be granted to the applicant, taking into account that the undertaking is not reinvested. The Commission shall include its findings in the statement of reasons for its proposal which, through the Institute (undertaking) referred to in § 6 (1) (2), shall refer to the Ministry of Agriculture if it finds reasons for the positive execution of the application. In the proposal for a positive settlement, the commission shall indicate which monetary institution or money enterprise is willing to grant a loan from an agricultural loan and shall attach proof of its credit commitment, after the fact that the monetary institution or undertaking proposes to the Ministry of Agriculture for that purpose, while ensuring that the long-term debts of the same debtor are concentrated with a single monetary institution or undertaking. If the Commission does not find the grounds for granting the agricultural credit, it shall reject the application by means of an extension.
(2) The Commission notes whether and to what extent the debtor's request for the Fund to take over the payment (Paragraph 14) is justified and will submit files with its proposal for a positive settlement of the Fund. If the Commission does not find the reasons for the Fund's salary, it shall reject the application accompanied by the grounds.
(3) The Commission oversees, in principle through a representative of the district economic and technical service (district agronoma), the management of the debtors, has a sound record of the agricultural credit in its territory and carries out a general advisory activity on the agricultural credit.
(4) In an agreement with the Ministers for Agriculture and Interior, the Minister of Finance shall publish in the Official Journal more detailed guidelines for the activities of the Commission under the preceding paragraphs and for the permanent registration of agricultural credit.
Standing Arbitration Committee.
(1) The applicant shall have the right to appeal to the Standing Arbitration Commission ("Standing Committee"), which shall be established with the Ministry of Agriculture, within 15 days of its delivery. The Standing Committee shall decide on the appeal after hearing the Institute (s) referred to in Article 6 (1), (2), taking into account the results of the proceedings carried out, which shall be completed if necessary. It shall, as appropriate, interview experts in the field of money processing.
(2) The Ministry of Agriculture shall inform the Commission of its decision to take over the guarantee. The same shall be done by the Standing Commission on the decision on appeal and by the Fund on the decision to take over the payment, which shall also be communicated by the Ministry of Agriculture and Finance.
(3) The Minister for Agriculture will declare further provisions on the conduct of the Standing Commission (Rules of Procedure) in agreement with the Ministers for Finance and Interior in the Official Journal.
(1) The Standing Committee shall be of four members. One member shall be appointed by the Agriculture and Finance Ministers, the third member being a representative of the Union of farmers responsible, appointed by the Minister of Agriculture on the proposal of the Union; The fourth member is appointed by the Minister of Finance on a proposal from the Czechoslovak National Bank. Representatives of the Unified Union of Czech Farmers and of the Unified Union of Slovak Farmers participate in the negotiations of the Standing Commission according to whether it comes from the Czech or Moravian-Silesian country or Slovakia. In the same way, four alternate members of the Permanent Commission shall be appointed.
(2) The Chairman of the Standing Committee shall be a member appointed by the Minister for Agriculture who has not been appointed on a proposal from the Single Union of Farmers concerned; his / her representative shall be a member appointed by the Minister of Finance of professional officials.
(3) A representative of the Ministry of Finance may, in important cases concerning the financial interests of the State, suspend the implementation of the resolution of the Standing Commission; in such a case, the Minister for Agriculture, in agreement with the Minister for Finance, shall decide on the possibility of implementing such a resolution.
(4) Paragraph 16 (4) to (7) applies as regards the members of the Standing Commission, mutatis mutandis, with the promise referred to in Article 16 (6) being in the hands of the Minister for Agriculture.
Conditions of guarantee and salaries of the Fund.
(1) There is no entitlement to the grant of the State guarantee and the salaries of the Fund.
(2) The Ministry of Agriculture, after the Fund's case, lays down the conditions when the application is handled in a positive manner.
Fee and tax exemption.
(1) Applications for the acceptance of a State guarantee or payment under this Act, the debt securities referred to in Article 5 (1), guaranteed by the State, the library submissions and the minutes relating to such loans, the instrument of their full or partial payment, the instruments of acceptance of the State guarantee under this Act and the agricultural notes (§ 4 (3)) shall be exempt from the fees. They are also exempted from the fees of the replacement debentures and the procedure for the rights of them (Section 5 (3)).
(2) The debtor's income from the Fund (Paragraph 13) is tax free.
Criminal provisions.
In the application for a State guarantee or in the application for payment by the Fund, or in the procedure laid down in paragraphs 15 to 18, those persons who incorrectly state or confirm the facts which may affect their decision to grant a State guarantee or to take payment by the Fund, or to withhold such facts, shall be punishable by a fine of up to 50,000 Kčs or by a prison (lockdown) within six months or both. In the event of non-availability of the fine, a replacement prison sentence (lock-down) shall also be determined according to the degree of guilt within the limits of the free penalty rate. If both penalties have been imposed, the sentence on the free side, together with the replacement penalty, must not be more than 6 months for an impenetrable fine.
Final provisions.
(1) If the Minister (Ministry) has made a general adjustment under the previous provisions, he will do so for Slovakia, after having expressed the relevant delegate (delegate), who will agree with the delegates involved (delegates).
(2) The Ministers (Ministries) and the Fund exercise their powers under this Act in Slovakia through the relevant delegates (delegates) who follow the directives issued by the Minister (Ministry), after the Fund.
(3) Statements published in the Official Gazette, issued under this Act, shall also be published in the Official Journal by the delegate concerned.
The provisions of the Decree of the Slovak National Council of 8 February 1946, No 24 Coll. on the State guarantee for a peasant loan, and the Implementing Regulation of the Board of Directors of 18 March 1946, No 39 Coll. SNR, which proclaims the details for the implementation of Regulation No 24 / 1946 Coll. on the State guarantee for an agricultural loan, are hereby repealed if they provide for the authorisation of loans under the State guarantee.
This Act shall take effect on the day of its publication; It shall be implemented by the Ministers for Agriculture, Finance, Interior and Justice in agreement with the participating members of the Government.
Dr Beneš v. r.
Zaporocký v. r.
Nosek v. r.
Dr Cap v. r.
Dr Dolansky v. r.
Děuriš v. r.
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Regulation Information
| Citation | Act No. 43 / 1948 Coll., on Agricultural Loan |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.04.1948 |
|---|---|
| Effective from | 10.04.1948 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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