The Research On Legal System Of Agricultural Insurance Concessional Loan

Agricultural insurance concessional loan is a way of funds which lending refers to the financial sector by the government or consistent with national law, banks, non-bank financial institutions or other lending institutions to lower lending rates and the general agreement for the return of the special conditions of the repayment period, the funds will be transferred to the operating currency of agriculture insurance policy holders. Its purpose has some legal characteristics, such as application-specific object, the order of the priority of loans, preferential interest rates. In the course of its operation should follow some basic principles which including the principle of preferential loans, credited to make loan and financial discount.The agricultural insurance concessional loan’s lenders can have some corresponding basic conditions, such as terms of reference or scope of business conditions, financial conditions and organizational conditions. The government’s financial sector, the Agricultural Development Bank, the Industrial and Commercial Bank of China, the Agricultural Bank and other lending institutions have in line with the above basic conditions. In terms of its borrowers, also should have the corresponding terms, the insurance or underwriting conditions and security conditions. Farmers, rural collective economic organizations, agricultural insurance organizations, agricultural insurance can be the borrower. The means of funding sources of the agricultural insurance concessional loan including the government’s financial sector special credit funds, the policy bank credit funds and the commercial bank credit funds. In the use of this part of the process funds should comply with the relevant legal provisions.In the development process, credit line of the agricultural insurance concessional loan should not only in line with the general provisions of national laws and policies, but also to consider and learn from micro-credit policies and other special factors. In security, the agricultural insurance concessional loan could be applied to ensure that lending, mortgage and pledge, the guarantor of which must be in line with some basic conditions, such as the identity conditions, civil capacity conditions, and be able to bear the corresponding legal responsibility. Preferential and fixed interest rates should be the important feature of the agricultural insurance concessional loan. In view of the agricultural insurance concessional loan is a policy loan, should be exempted from business tax, stamp duty and corporate income tax, and give legal certainty to the law. As a financial lending supervisor of the agricultural insurance concessional loan, they should have the appropriate conditions for the terms of reference, organization and institutional conditions, central banks, the CBRC and other financial regulators can become its supervisor, in the regulatory process, to comply with the legitimacy, independence and coordination principle, if they violate the law system, should bear the corresponding legal responsibility.