LAW OF THE REPUBLIC OF MOLDOVA

of February 25, 2000 No. 845-XIV

About urgent measures for support of the agrarian sector

The Parliament adopts this organic law.

Art. 1. - Form the Fund of support of the agrarian sector managed by the Ministry of Agriculture, Water Resources and Processing Industry in the amount of 90 million lei which means will be used completely for provision of financial aid to owners of the agricultural holdings distributed according to provisions of the Land code. The allocated financial resources intend only for carrying out spring field works and are used according to the Regulations on distribution and procedure for use of fund of support of the agrarian sector which are integral part of this law.

Art. 2. - Permit the Ministry of Finance to transfer before adoption of law on the budget for 2000 in Fund of support of the agrarian sector financial funds in the amount of 50 million lei and 40 million lei respectively in March and in the first decade of April, 2000.

Art. 3. - To Audit Chamber till August 1, 2000 to exercise control of distribution of fund of support of the agrarian sector.

Art. 4. - Grant the right to Department of customs control under the Ministry of Finance to extend up to 180 days payment due date of the value added tax when importing mineral fertilizers and pesticides only on condition of submission of bank guarantees by importers.

Art. 5. - Exempt from the value added tax, customs duty and the special duty import of seeds of potatoes of the first reproduction.

Art. 6. - To the government in coordination with National Bank of Moldova till March 25, 2000 to provide to Parliament of the offer on the mechanism of creation and use of fund of stimulation of crediting and repayment of the credits by owners of the acts certifying the right of private property to the earth in the amount of 10 million lei.

Art. 7. - To the government to include provisions of this law in the bill on the budget for 2000.

Art. 8. - This law is applied before entry into force of the law on the budget for 2000.

Appendix

Regulations on distribution and procedure for use of fund of support of the agrarian sector

This provision establishes procedure for use of fund of support of the agrarian sector and is integral part of the Law on urgent measures for support of the agrarian sector.

I. GENERAL PROVISIONS

1. Financial aid is provided for the purpose of ensuring accomplishment of spring field works in 2000 and increases in return of agricultural holdings.

2. Financial aid is provided to the following owners of the agricultural holdings which are in private property (except for personal plots and kitchen gardens), transferred to them as a result of privatization to the period till March 31, 2000:

- to physical persons which are handed according to the Land code the acts certifying the right of the owner of the earth and which are registered in the cadastral register of owners of lands or the real estate register;

- to physical persons which share of the equivalent earth is determined in nature for each person separately by the solution of primeriya based on the acts confirming the right to share of the equivalent earth and which are registered in the cadastral register of owners of lands or the real estate register;

- to physical persons to which agricultural holdings by results of competitive distribution of land within the National privatization program and reorganization of Pamint agricultural enterprises are allocated.

3. Financial aid is provided gratuitously and performed in the form of the money provided depending on the area of the agricultural holdings which are in private property (except for personal plots and kitchen gardens).

The money intended for financial aid to owners of the parcels of land which are in private property is used by the lessee from written consent of the owner of the parcel of land which leased it.

4. Financial aid intends only for acquisition of fuel, the certified seeds and landing material, chemicals and growth factors of plants, and also for payment of accomplishment of agricultural works.

5. For coordination of the activities connected with management of fund of support of the agrarian sector within the Ministry of Agriculture, Water Resources and Processing Industry the working group with participation of representatives of the Ministry of Finance, National agency of the inventory, land resources and geodesies, Department of privatization and management of state-owned property under the Ministry of Economics and reforms and one representative from each county, from ATO Gagauzia and municipium of Chisinau is created.

6. District councils, Executive committee of Gagauzia and council of municipium of Chisinau the decisions form the relevant commissions on coordination of the activities connected with management of support of the agrarian sector of Fund, headed by chiefs of the relevant head departments of agricultural industry and food. Representatives of financial and other managements of bodies of local public authority, territorial agencies of Department of privatization and management of state-owned property, primara or deputies of primar (at the discretion of local council) communes (villages) which are part of the corresponding administrative and territorial units are part of the commissions.

II. PROCEDURE FOR PROVISION OF FINANCIAL AID

7. Primeriya in coordination with territorial agencies on privatization, territorial public services of land management and territorial financial administrations according to Item 2 this provision constitute lists of receivers of financial aid on subordinated primeriya of the territory with indication of the acreage for which financial aid (appendix 1) is provided. These lists are hung out without fail in primeriya as the official document.

8. Based on the lists provided by primeriya head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau constitute registers of distribution of fund of support of the agrarian sector on communes (villages) and the cities (municipium) (appendix 2) and represent them to the working group created within the Ministry of Agriculture, Water Resources and Processing Industry. The term of submission of registers - till April 5, 2000.

9. The Ministry of Agriculture, Water Resources and Processing Industry represents to the Ministry of Finance payment treasurer orders together with the registers of distribution of financial resources provided by head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau.

10. The Ministry of Finance vises payment treasurer orders and transfers funds of financial aid into the current accounts of the amounts according to orders opened by head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau for carrying out transactions on obtaining and issue of means for the purpose of financial assistance to agricultural producers.

11. Head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau transfer appropriate means into the current accounts of the amounts according to orders opened in branches of Moldova-Agroindbank S.A commercial bank. each primeriya.

12. Based on the declaration on the personal liability (appendix

3) primeriya transfer funds of financial aid into current accounts of receivers or issue these cash amounts or the check.

Financial aid is provided to heirs of receivers based on the certificate on inheritance right.

Receivers can authorize based on the power of attorney on receipt of money other person. The authorized representatives having in case of themselves the identity document, and the power of attorney of the receiver which remains in primeriya fill and sign the declaration on the personal liability.

13. If the receiver is not found or mistakes in lists of receivers of financial aid are revealed, примар takes adequate measures. Changes in lists of receivers of financial aid are made only behind the signature and under responsibility of primar not later than in 10-day time after filing of application.

14. The means of financial aid which are not distributed within a month and remained in primeriya or on the account of primeriya return to the relevant head department of agricultural industry and food with their subsequent transfer to Fund of support of the agrarian sector.

III. RESTRICTIONS AND RESPONSIBILITY

15. The means of financial aid transferred into accounts of head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau, primeriya or receivers are not subject to taxation, cannot be seized them for the purpose of repayment of accounts payable, they cannot be used for payment of penalties or for implementation of other payments, except specified in item 4 of this provision.

16. All financial banking activities within management of support of the agrarian sector of Fund are made by Moldova-Agroindbank S.A commercial bank. The rate for the services in distribution of fund of support of the agrarian sector rendered by this bank is established in the amount of percent 0,1 from the transferred amount.

17. Primeriya till June 1, 2000 constitute reports on obtaining and use of fund of support of the agrarian sector on the form 4m approved by the order of the Minister of Finance N 124 of October 12, 1998 and represent them for generalization to the relevant head departments of agricultural industry and food. Lists of receivers of financial aid, the declaration on the personal liability, and also other documents confirming receipt of the appropriate financial resources are stored in head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau within 5 years. Lists of persons who received financial aid are hung out without fail in primeriya as the official document.

18. Head departments of agricultural industry and food of counties, ATO Gagauzia and municipium of Chisinau till July 1, 2000 draw up reports on form 4m and represent them to the Ministry of Agriculture, Water Resources and Processing Industry which generalizes them and submits to the Ministry of Finance the report on the same form in general on the republic together with the quarterly statement.

19. Primara bear the personal liability for obtaining and the correct distribution of fund of support of the agrarian sector.

20. Falsification of the list of receivers of financial aid (inclusion in the list of the same person more than once, unreasonable inclusion of person in the list, counterfeit of signatures, etc.) attracts the responsibility provided by the law.

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