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LAW OF UKRAINE

of February 22, 2024 No. 3586-IX

About agrarian notes

Section I. General provisions

Article 1. Determination of terms

1. In this Law the following terms are used in the following value:

1) the debtor person, the obligation which issued agrarian note, certifying it to perform delivery of agricultural products or to pay money in accordance with the terms, determined in such agrarian note;

2) production - the activities connected with production of agricultural products including all stages of engineering procedure (technology), namely: primary production (cultivation, collection, cultivation, content, slaughter), production, preparation, mixing and procedures connected with it, processing, filling, packaging, conversion, recovery and other changes of condition of products;

3) creditor owner of agrarian note;

4) future agricultural products - agricultural products which will be in property of the debtor after date of issue of agrarian note before complete cessation of obligations on it at the same time such products will be grown up, gather, to be made, be overworked, be stored and/or to contain on the parcel of land (parcels of land) or on the capacities located on the parcel of land (parcels of land) specified in agrarian note as the place of cultivation, collection, production, conversion, storage and/or content of future agricultural products;

5) the marketing period term determined in agrarian note during its issue which begins with the first in which it begins to be delivered (to be on sale) type of products of crop production of the corresponding harvest and comes to an end with the last date, preceding month in which it begins to be delivered (to be on sale) this type of products of crop production of the following harvest, or for other types of agricultural products can equal to one fiscal (financial) year, or can have other duration;

6) primary conversion process of transformation of agricultural raw materials of plant or animal origin to partially processed product which is raw materials for production of food or forages;

7) capacities - any territories, buildings, constructions, rooms used for production (cultivation or cultivation, slaughter of animals), conversions, contents, storages or transportations (movement) of agricultural products which belong to the debtor on the property right or right to use;

8) agricultural products products which list is determined in groups 01-24 of Sections I-IV of the Ukrainian classification of goods of foreign economic activity according to the Law of Ukraine "About customs tariff of Ukraine";

9) the special statement from the Register of agrarian notes (further - the special statement from the Register) - the document which at the initiative of the creditor is generated by means of program technical means of the Register of agrarian notes only for the address of collection on agrarian note.

2. Other terms are used in this Law in the following values:

1) the terms "depositary system of Ukraine", "Central Securities Depository", "Central Depositary"," the account in securities" - in the values given in the Law of Ukraine "About depositary system of Ukraine";

2) the term "information and communication system" - in the value given in the Law of Ukraine "About information security in information and communication systems";

3) the term "claimant" - in the value given in the Law of Ukraine "About enforcement proceeding".

Article 2. Scope of the law

1. Scope of this Law are the relations arising during issue, the address, the termination of agrarian notes, the address of collection on agrarian notes.

2. The legal basis of functioning of agrarian notes in Ukraine the Constitution of Ukraine, the Civil code of Ukraine, this Law, the laws of Ukraine "About the capital markets and the organized goods markets", "About state regulation of the capital markets and the organized goods markets", "About depositary system of Ukraine" constitute, other laws of Ukraine regulating legal relationship of rather agricultural production and functioning of the markets of agricultural products, the capital markets and the organized goods markets, and also legal relationship concerning functioning of other financial and credit markets.

3. Operation of this Law does not extend to the relations of rather agrarian receipts which are governed by the Law of Ukraine "About agrarian receipts".

4. Operation of the Law of Ukraine "About agrarian receipts" does not extend to the relations of rather agrarian notes.

Article 3. Use of agrarian notes

1. Agrarian notes are used as the instrument of attraction of money in agricultural industry of Ukraine and/or for implementation of payment under current agreements.

2. Agreement settlement by issue or transfer of agrarian note is possible only provided that the possibility of carrying out calculation with use of agrarian note is provided in such agreement.

3. In case of implementation of agreement settlement by issue or transfer of agrarian note of the obligation under such agreement stop in the amount of the obligation on agrarian note if other is not provided by the agreement.

4. The agrarian note may contain clause that all or part of disputes in legal relationship between the debtor and the creditor who arise based on agrarian note are resolved by reference tribunal or the international commercial arbitration.

The clause provided by paragraph one of this part is considered the agreement between the debtor and the creditor on transfer of dispute on the decision reference tribunal according to the Law of Ukraine "About reference tribunals" or the arbitral agreement according to the Law of Ukraine "About the international commercial arbitration". The creditor who received in property agrarian note with such clause is considered the reference tribunal or the international commercial arbitration of all which provided consent to the decision or parts of disputes in legal relationship between the debtor and the creditor from the moment of emergence at it of the property right to such agrarian note.

5. The agrarian note cannot be used along with the agrarian receipts provided by the Law of Ukraine "About agrarian receipts", the same debtor concerning the same subject of pledge.

Article 4. The prohibition to persons of separate categories to be participant of the relations on agrarian notes

1. (Completion of production, cultivation or cultivation, slaughter of animals, conversions) or collection of agricultural products, person answering at least to one of the following criteria cannot be the debtor, the creditor, person performing monitoring of subject of pledge of agrarian note, or person, involved by the creditor for growing implementation:

1) the physical person having nationality of the state performing the armed aggression against Ukraine in the value given in article 1 of the Law of Ukraine "About defense of Ukraine" (further in this part - the state aggressor), or the place of permanent residence (stay, registration) which is the state aggressor. Provisions of this Item do not extend to the physical persons living in the territory of Ukraine on legal causes and/or to which the participant status of fighting after April 14, 2014 is provided;

2) the legal entity created and registered according to the legislation of the state aggressor;

3) the legal entity created and registered according to the legislation of Ukraine, the final beneficial owner the member or the participant (shareholder) of which is the state aggressor and/or person specified in Item 1 or 2 of this part;

4) person to whom special economic and other rationing measures (sanctions) according to the Law of Ukraine "About sanctions" are applied;

5) person included in the list of faces tied with implementation of terrorist activities or to which the international sanctions are applied;

6) the legal entity, information on whose all final beneficial owners is not opened that it is registered in the state (in the territory) carried by the Cabinet of Ministers of Ukraine to the list of offshore zones;

7) the legal entity, information on whose final beneficial owners is not opened according to requirements of the Law of Ukraine "About state registration of legal entities, physical persons entrepreneurs and public forming";

8) the legal entity registered according to the legislation of the state, brought by group on development of financial measures of anti-money laundering (FATF) in the list of the states which are not cooperating in the field of counteraction to laundering of income gained in the criminal way and also the legal entity, 50 and more percent of the authorized capital of which directly or indirectly belong to such person.

Section II. Concept, types and details of agrarian notes

Article 5. Concept and types of agrarian notes

1. The agrarian note is the not issued security certifying the unconditional obligation of the debtor provided with pledge to perform delivery of agricultural products or to pay money to the creditor in accordance with the terms, determined by such security.

2. Agrarian notes on degree of the turnover ability determined in case of issue of agrarian note are subdivided on:

1) agrarian notes which turnover is limited and which are not subject to transfer except legal succession, inheritances or according to the act of public nature, in particular in case of nationalization, requisition, confiscation (it is limited transferable agrarian notes);

2) agrarian notes which turnover is partially limited trade in which in the organized markets of the capital is limited, and with joint liability of creditors who provided the responsibility by transfer of agrarian note, having noted that transfer agrarian note with the guarantee (it is partially limited transferable agrarian notes);

3) the agrarian notes which are in free circulation without restriction of trade in the organized markets of the capital and without joint liability of creditors (unrestricted agrarian notes in turnover).

The Central Securities Depository performs display of information on degree of turnover ability of agrarian note in system of depositary accounting.

Ensuring compliance with degree of turnover ability of agrarian note is assigned to depository institution.

3. The agrarian note exists electronically in the form of accounting record on the account in securities in system of depositary accounting of securities with reflection of data on details of the agrarian note and other information determined in part one of article 8 of this Law, in the Register of agrarian notes.

4. Agrarian notes by the form of the obligation are subdivided on:

1) commodity agrarian notes;

2) financial agrarian notes.

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