Cabinet approved the procedure for damages caused to the local government to citizens who have bought apartments in unfinished by purchasing bonds. Local government will buy bonds if the decision to cancel the allocation of land for development.
Cabinet of Ministers approved the procedure for determining and damages caused by the holders of special purpose bonds, bonds which are performed by passing an object of Housing.
This is stated in the resolution of the Cabinet of Ministers № 37 from January 25.
"To approve the procedure for determining the amount of damages caused by the holders of special purpose bonds, performance of obligations which is effected by the housing projects, and their compensation", - stated in the decree.
The order establishes a mechanism for identifying and damages caused to the holders of target housing bonds in the event of local government or the executive decision to suspend or terminate the right to use the land intended for construction of residential real estate, financed with funds of natural persons or legal entities by issuing special purpose bonds .
1. Informing people
The Port Authority, local authority or the executive branch of the decision to suspend or terminate the right to use the land intended for construction of residential properties within 5 working days of the publication provides a corresponding announcement in the print media and on its Web site, and and within a week appeals to the issuer of the bonds with the requirement to submit information about the denomination and the number of outstanding bonds.
2. Reimbursement from the local budget
Executive authority in one-day period gives this information to local authorities, which shall include the costs for reimbursement to the local budget.
Compensation is carried out at the expense of costs provided for this purpose in the general fund of the local budget.
If the current budget period such funds are not provided, the appropriate local authority provides changes to the local budget for the current year or provides them in the draft budget for next year.
The amount of compensation equal to the nominal value of bonds, as well as the amount of revenue that the bondholders could get, having carried out the acquisition of alternative investment bonds (determined on the basis of the level of interest rates the National Bank for the period from the date of purchase of bonds until recovery).
3. Notification of bondholders
Upon receipt of the issuer of bonds targeted information about the holders of bonds and their corresponding number of bonds the local government provides, within 3 working days of the publication of the announcement of the recovery in the print media and on its website, and also sends a written notice to each holder of the bonds.
Compensation is carried out within two months from the date of the local authority list of bondholders by transferring the corresponding amounts in the accounts of legal entities or through the payment of separation "Ukrposhta" for individuals.
Transmit the bond issuer, the holder of which the local authority paid compensation shall be deemed such obligations are satisfied, and canceled in accordance with legislation.
Recall, June 2, 2011 the Verkhovna Rada passed the whole bill number 7331, designed by the Cabinet of Ministers, suggesting improvement of legal regulation of targeted treatment of housing bonds.