AZE.US
Azerbaijani farmers could obtain financing before the growing season by pledging sales proceeds or part of their future harvest under a new bill consisting of six chapters and 13 articles.
The draft law on a “product certificate” has been reviewed by the Milli Majlis Committee on Agrarian Policy. It remains a proposal and is not yet in force.
The certificate would be issued as a security through the Electronic Agriculture system. Banks, non-bank credit institutions and agricultural procurement companies could hold the instrument.
Two forms are proposed. A financial certificate would require a producer to repay the lender from crop-sale proceeds, while a commodity certificate would require delivery of an agreed quantity of future produce.
Certificate holders would be allowed to monitor cultivation and initial processing. In the event of default, the document could be treated as enforceable, allowing collection to begin with limited court involvement.
Electronic processing is expected to eliminate notarization costs. If adopted, the law would take effect three months after its official publication.
AZE.US