The right to land contractual management is expected to legalize as collateral.
May 27, the central bank and Law Secretary, Zhou Xuedong proposal to allow farmers the right to own land contract mortgage to the bank, to ease the difficult issue of loans to farmers. In the Supreme Court and a seminar organized by the central bank, Zhou made the above recommendations. Supreme Vice-President Xi Xiaoming, deputy central bank governor and other officials attended the Hu Lian.
The proposal is for the Supreme Court "," Property Law "security interest of judicial interpretation" put forward. Plan in accordance with the Supreme Court, the judicial interpretation will form the second half of next year draft, submitted to the NPC Law Committee, and strive to put the first half of 2012.
Although the industry on whether the right to land contractual management as collateral still have questions, some commercial banks have to have quite looking forward to this. Because once they do land in the "burden" may be a change and for the high-quality asset package.
Vision is more worthy of the vast majority of farmers getting loans or a turnaround. As a central Hubei Tianmen this highly anticipated pilot. Tianmen break the red line in March 2009, accepted the right of farmers to land contractual management as collateral to bank loans.
"Once the element of rural land is activated, it will be an enormous effective demand for credit." One of the participants said the reporter.
Seminar dispute
Supreme Court of the Supreme People Court Vice President Zhang Yongjian, said the reporter, the central bank's proposal to be included in the judicial interpretation, see if there is no legal basis, also need to be carefully studied.
However, another central bank official said on condition of anonymity, "Property Law" and the "security law" only prohibits land ownership and land use rights as collateral, does not explicitly prohibit the right to land contractual management as collateral, and "Property Law" stipulates that the right to land contractual management may take subcontract, exchange, transfer circulation, etc., so clearly in the judicial interpretation of the right to land contractual management can be used as collateral did not constitute "property law" and the "security law" conflicts.
Zhou Xuedong fear is to realize the right to mortgage the land contract management function, the timely introduction of relevant supporting measures, such as the rural social security system and the establishment of rural property rights market. The most high-level concern is that if allowed to land contractual management rights as collateral, farmers unable to repay loans, the bank took away land, landless peasants could turn to "displaced persons" affect social stability.
Commercial banks are also highly concerned about this.
For some banks, a huge burden on the shoulders may turn into a high-quality asset package. Agricultural firms in a municipal office on May 27, said the reporter, "our hands are now about 1 million mu of rural land, town and township enterprises are then secured to us, due to lack of legal recognition of ownership, as The main component of bad assets, but if the future land contract law allows the right to operate as collateral, it may turn bad as a whole. "
Days door pilot
In fact, the central bank has introduced the right to land contractual management pilot as collateral.
Hubei days door, had the honor in March 2009 to become one of the pilot. In this regard, the day the door than a comprehensive reform of urban and rural areas of Chengdu and Chongqing pilot, went further. Because "property law", "Guarantee Law" and other laws relating to "Land ownership" and "land use" as a prohibition of collateral.
Chengdu, the model is set up by the government-funded security company, security company for the farmers (or agricultural enterprises) to guarantee loans from banks, farmers (or agricultural enterprises) the right to land contractual management as a guarantee against collateral pledged to the company. Directly corresponds to the bank guarantee and not to accept the company's guarantee farmers (or agricultural enterprises) the right to land contractual management as collateral.
The pilot Tianmen, Hubei is more daring, the local rural credit cooperatives to directly receive the right to land contractual management of farmers as collateral. Tianmen government is boldly touch the red line to take the risk, because the central bank is "backing", the pilot is in the central Hubei branch day under the guidance of the door's.
Inhibitory effect in the May 27 forum on the introduction, as of the end of February this year, the city has the right to land contractual management handled 16 cases of mortgage loans, totaling 3.49 million yuan.
"It should be said very little amount, but to solve the difficult loans to farmers, a favorable mortgage-backed attempt." Zhou Xuedong said the pilot program is the central and local government and rural credit cooperatives jointly developed, including model loan, loan processing principles and risk prevention mechanism, and detailed provisions to the loan from the loan application process.
And the central bank cautioned to avoid risk. The main target of loans defined as land transfer by up to a certain large-scale cultivation and breeding, farmer cooperatives and leading enterprises. Despite the large Tianmen a kind of culture more than 1400 households in 300 million yuan in total funding gap of more than a great market demand, but the pilot chose only low risk, returns better rate of return is relatively high, relatively strong capacity for sustainable development credit customers.
Hubei days under the guidance of the central bank door pilot called "bold", but the joint villages of Zhejiang Changxing Bank ZHU Hai-rong in the May 27 forum that the right to land contractual management as a collateral matter of course. "For most farmers, the most important property is the land and housing, the existing law that the two are out of effective collateral, the collateral loans of farmers hard." Lack of effective collateral materials, credit needs of farmers would be difficult to be effective for the banks demand for credit.
ZHU Hai-rong introduction, Changxing joint rural banks the right to land contractual management is not only accepted as collateral, and form a complete value assessment system. For example, the land was to be kind of red bayberry, and the right to land contractual management for 10 years, 10 species of Myrica will earn money off existing current value of the right to land contractual management.
Three major obstacles to crack
Tianmen original use of contracted land management right mortgage loan plan is 10 million yuan, but only at the end of February this year, a mere 3.49 million yuan, the actual only about 30% completed the program.
Visible, the pilot is not successful.
Zhou Xuedong told reporters, legal obstacles, rural property right trading platform and the rural social security system has not been established, have led to slow progress in the pilot. This is also including Chengdu, Chongqing pilot areas nationwide, including common problems.
Despite the central bank support, Tianmen banks are still afraid to follow up, only the local rural credit cooperatives participating in the pilot, the reason being to land contractual management rights as collateral for the lack of clear legal basis. "Property Law" and "Guarantee Law" provide that land use rights may not be mortgaged.
Supreme Court involving the right of rural land contracting disputes and judicial interpretation of the relevant legislation also provides the contractor the right to land contractual management or the satisfaction of mortgage debt should be invalidated, which makes the right to land contractual management collateral contract may be considered null and void contract.
Agricultural firms above a certain municipalities Office said, accepting the right of rural land contracting it is quite upset, as collateral, is an instruction to the village and township enterprises receiving government loans formed and, therefore, clear that there are significant flaws in the mortgaged property, but "there is mortgage better than nothing. "
Zhang Yongjian said, is not yet concerned about the right to land contractual management of litigation arising as collateral. But it is clear that, under the existing legal framework, banks to accept land contractual management rights as collateral, Ru Guo dispute, whether there are significant Bu win uncertainty.
But "even if the court found in favor of banks, mortgage banks to exercise the right to receive the hands of the disposal of the land?" A joint-stock bank credit, general manager, said the land contracting right if the market can not be formed, the value can not be realized, mortgage "useless" .
Agricultural firms above a certain municipalities Office introduced in my hand for the 10,000 acres of rural land, the bank is mainly used in consultation and local governments, state-owned land allocated by the Government way of replacement, lower losses. Only a very small part of the land can flow out, the reason is in the rural property market and the lack of intermediaries, it is difficult to find the demand side.
However, the right of rural land contracting is difficult to release the mortgage of the most important reason is that high-level concern in the rural social security system has not been the case, large-scale farmers will own the right to land contractual management mortgaged to the bank, if you can not repay, land banking income gone, the lack of landless peasants living, evolving as "displaced persons", thus threatening social stability.
Inhibitory effect that the pilot areas the Government should adopt a variety of ways to speed up rural social security system, establishment of farmers a minimum living standard security system, to assuage their worries, making farmers even lose the right to land contractual management may still survive.
The State Council, some areas may be a clear choice, as a pilot area, while the formulation of supporting policy measures. Tianmen similar pilot should be recognized by the State Council. In order to stimulate the enthusiasm of the banks can lend support through financial discount, sharing the risk.
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