Joint Regulation No. 1345 of the Ministry of Justice and No. 564 of the Central Bank on extending credit to farms secured by land lease rights.

This Joint Regulation regulates commercial bank loans to farming enterprises secured by land lease rights. Credit shall be extended on condition of its recovery, security and intended use. Commercial banks shall extend credit on a contractual basis and shall have as collateral the rights to land leases. As such, the lease in question must have a term that extends at least five years beyond the loan repayment date. Applications to receive credit shall include: (a) credit application; (b) business project with mandatory loan repayment plan; (c) copy of bookkeeping balance sheet; (d) notarized copy of the farming enterprise’s long-term land lease contract; (e) consent of the landlord (head of local administration) for granting the right of lease of a plot of land; and (f) a map of the land in question.

Amended by: Decree No. 24/13 of the Central Bank amending Joint Regulation No. 1345 of the Ministry of Justice and No. 564 of the Central Bank regarding crediting of farms on security of the right of lease of the plots of land. (2004-11-25)