Conducting enforcement of subsidies for farmers

Service

A significant part of debtors has EU subsidies for agriculture as a significant part of their assets. Is it possible to carry out enforcement of subsidies for farmers?

The practice to date has been patchy. Some bailiffs enforced subsidies and items purchased for them. Some of them applied to the letter of the Ministry of Justice of October 25, 2012, reference number: DPrC-4190-4 / 12, according to which the then wording of Art. 831 of the Code of Civil Procedure subsidies for farmers were excluded from enforcement.

Due to the unclear normative status, the legislator decided to introduce the Act of 24 January 2014 amending the Act on the principles of development policy and certain other acts and which concerns the exemption from enforcement of funds received from the EU subsidy. The amendment has a broader meaning and covers all beneficiaries, not only farmers.

In art. 831 of the Code of Civil Procedure in § 1, point 2a was added as follows:

 

art. 831 § 1 point 2a) funds from programs financed with the participation of the measures referred to in article 1. 5 sec. 1 points 2 and 3 of the Act of 27 August 2009 on public finances (Journal of Laws of 2013, items 885, 938 and 1646), unless the enforced claim arose in connection with the implementation of the project for which these funds were intended.

 

Funds from the EU budget were excluded from enforcement. An exception was made only for situations where the beneficiary has to return the money because he has not performed the support agreement.

The wording of Art. 831 § 2:

 

art. 831 § 2. In the cases referred to in § 1 point 1-2a and 7, sums and benefits in kind already paid or issued are not subject to enforcement, and in the case referred to in § 1 point 2a, fixed assets and values ​​are also not subject to enforcement. intangible and legal arising as part of the implementation of the project for which the funds from the programs financed with the participation of the funds referred to in Art. 5 sec. 1 point 2 and 3 of the Act of 27 August 2009 on public finances, for the period of its durability specified in the project co-financing agreement.

 

The protection of EU funds therefore applies to funds in the account, as well as fixed assets purchased from this money as part of the project.