The Cabinet will consider the draft on improvement of the mechanism of pledge of farmland

© RIA Novosti / Vitaly to Timepiece in fotomontage wheat. Archival photoThe Cabinet will consider the draft on improvement of the mechanism of pledge of farmland© RIA Novosti / Vitaly to Timepiece the image Bank

The government of the Russian Federation on Thursday will consider the bill of the Ministry of agriculture to improve the mechanism of pledge of agricultural land, reported the press service of the Cabinet of Ministers.

The norms of the current law «On mortgage» does not create credit organizations interest in using agricultural land plots as collateral. The bill proposes to satisfy the requirements of the mortgagee in an extrajudicial procedure, if the subject of pledge (mortgage) of land is agricultural land that contains no buildings or structures. The purpose of the bill is to increase the attractiveness of parcels of agricultural land and attracting more investment in agro-industrial complex.

It is noted that at present this mechanism prevents the low liquidity and the duration of the term of repossession of the plots of agricultural land. According to Bank of Russia regulation on the formation of reserves, to ensure that the II category of quality can be assigned to the securities if the relevant rights may be exercised within a period of not more than 270 calendar days from the date of occurrence of grounds for repossession of collateral.

Current law does not allow foreclosure on a parcel of agricultural land in pledge the credit of the organization in such a period. In this regard, a credit institution may not consider the pledge of agricultural lands as security for the II category of quality, and therefore are not interested in using them as collateral.

The bill provides for the satisfaction of claims of the pledgeholder out of court, if the subject of pledge (mortgage) of land is agricultural land that contains no buildings or structures. It is also proposed to exclude provisions that do not allow foreclosure of the mortgaged agricultural land plot before the expiry of the period of agricultural works, under the condition of preserving for the pledger of the right of sale of manufactured and processed in such a land plot of agricultural products.

In addition, provides for the elimination of the deferral by the court for up to one year of foreclosure of the land plot from agricultural lands turning to his collection.

Source

Be the first to comment on "The Cabinet will consider the draft on improvement of the mechanism of pledge of farmland"

Leave a comment

Your email address will not be published.


*