Notice on Strengthening Land Reserve and Financing Management

Guo Tu Zi Fa (2012) No. 162

Provincial, autonomous regions, municipalities directly under the Central Government and sub-provincial cities, land and resources departments, financial departments (bureaus), Xinjiang Production and Construction Corps Land and Resources Bureau, Finance Bureau, People's Bank of China Shanghai headquarters, branches, business management departments, provincial capital (capital) cities Central sub-branches, central sub-branches in sub-provincial cities, and various banking regulatory bureaus:

　　In order to strengthen land reserve institutions, business and capital management, regulate land reserve financing behavior, effectively prevent financial risks, and ensure the standard and healthy operation of land reserve work, the relevant issues are hereby notified as follows:

　　 1. Strengthen the management of land reserve institutions

　　The competent department of land and resources manages the land reserve in a unified manner, and establishes a directory of land reserve institutions (hereinafter referred to as the "list") in accordance with the "Land Reserve Management Measures" (Guo Tu Zi Fa [2007] No. 277). The municipal and county land and resources authorities shall report the information of the institutions that meet the requirements to the provincial land and resources authorities level by level, and report to the Ministry of Land and Resources after being reviewed by the provincial land and resources authorities for inclusion in the directory and regular updates. The Ministry of Land and Resources will copy the list or update results to the Ministry of Finance, the People's Bank of China and the China Banking Regulatory Commission, and local land and resources authorities at all levels will copy the reviewed list to the finance department at the same level, branches of the People's Bank of China, and banking supervision and administration departments.

　　 The Ministry of Land and Resources uses the land market dynamic monitoring and supervision system to monitor and supervise the business development of land reserve agencies. The land reserve institutions listed in the directory should upload relevant information including reserved land, reserved land, reserve funds income and expenditure, various financing, etc., through the entry of the national land resources backbone network, and the cities and counties that have not yet opened the national land resources backbone network. Input and upload through the Internet, as the main basis for land management, fiscal budget, and financial loan supervision and inspection. The competent department of land and resources at the same level shall supervise and approve the upload of information. The Ministry of Land and Resources and the provincial-level land and resources authorities regularly copy relevant information to the finance and branches of the People's Bank of China and the banking supervision and administration departments at the same level.

　　 2. Reasonably determine the scale and structure of reserved land

　　The land reserve agency should strengthen the analysis of the local economic and social development and the land market situation, put forward reasonable suggestions based on the forecast of land demand and the direction of market regulation, and strictly control the total scale of land reserve and the scale of financing.

　　The land reserve agency shall prepare the land reserve plan for the next year in the third quarter of each year. The annual land reserve plan is the main basis for formulating the annual land reserve fund revenue and expenditure budget and determining the annual land reserve financing scale. In the annual land reserve plan, the scale of newly-added reserve land (including the reserve land purchased and stored this year) should in principle be controlled within the average annual supply of reserve land at the city and county level in the previous three years. Priority will be given to the acquisition of spare, inefficient use and other existing construction land, and the active development of industrial land reserves. The reserved land should be used in priority for affordable housing projects and other public welfare undertakings. The land and resources, financial departments and branches of the People’s Bank of China at the same level are responsible for reviewing and adjusting the annual land reserve plan, submitting it to the people’s government at the same level for approval, and reporting to the higher-level land and resources department for the record.

　　 3. Strengthen the management of the preliminary development of reserved land

　　The land reserve agency should organize the preliminary development of reserve land to provide effective guarantee for the government’s supply of “net land”. For infrastructure construction such as roads, water supply, power supply, gas supply, drainage, communications, lighting, greening, land leveling, etc., the engineering design, construction and supervision units shall be selected through public bidding, and the engineering construction shall not be carried out through subordinate institutions. Those with subordinate or affiliated institutions engaged in engineering construction must be completely decoupled from the land reserve institution. During the construction period of the preliminary development project, the land reserve agency shall supervise and manage. After the completion of the project, the land reserve agency shall organize and carry out the inspection and acceptance. The inspection and acceptance shall be carried out in accordance with the relevant regulations on the acceptance of the project. For the management, protection and temporary use of reserved land, the land reserve agency can set up an internal organization to manage it, or select a management unit through public bidding.

　　4. Strengthen land purchase, storage and management

For land reserve agencies listed in the list, the competent land and resources department at the same level can, in accordance with the land reserve plan, in accordance with relevant regulations, reclaim state-owned land, purchased land, land acquired through the exercise of preemption rights, and have already handled the conversion and expropriation of agricultural land in accordance with relevant regulations. The land that has approved the procedures and completed the land acquisition and other land obtained by the government according to law shall be handed over to its reserve.

　　The land included in government reserves must be land with clear property rights. Before the relevant land is included in the reserve, the land reserve agency should carefully check the compliance of the land acquisition methods and procedures, economic compensation (except for the free recovery of the government), and land rights (including other rights). Compliance, inadequate compensation, unclear land ownership, failure to go through the land registration procedures, cancellation of the original land registration procedures that should be cancelled, and other rights of established land that have not been released in accordance with the law shall not be included in the reserve.

　　The land reserve agency shall manage and protect the land included in the reserve by self-management, entrusted management and protection, and temporary use. Establish an inspection system to detect, stop, and deal with violations of reserved land rights early.

　　 The temporary use of reserved land shall be reported to the competent department of land and resources and the financial department of the people's government at the same level for approval. Among them, the temporary use of the reserved land in the urban planning area requires the construction of buildings and structures, and the approval of the urban planning administrative department shall be obtained before the approval; the temporary use of the reserved land for the establishment of mortgage rights shall be obtained from the mortgagee Written consent. The land reserve agency shall sign a temporary land use contract with the land user, clarifying the land use, time limit, economic compensation, non-permanent buildings, the treatment of expired ground buildings, and the treatment of early termination of the use of economic relations. The period of temporary use of reserved land shall not exceed two years, and shall not be subcontracted. The income obtained from the temporary use of reserved land shall be paid into the treasury at the same level and included in the public budget in accordance with the provisions of the non-tax income collection and management measures, and the management of "two lines of income and expenditure" is implemented.

　　 5. Regulate land bank financing

　　 If the land reserve institution really needs financing, it should be included in the unified management of local government debt, and the unified policy of local government debt management should be implemented. The financial department at the same level shall, in conjunction with the competent department of land and resources and the branches of the People’s Bank of China, approve the scale of land bank financing according to the annual land bank plan, and after review by the people’s government at the same level, report it to the provincial financial department in accordance with the level of financial management. After the provincial finance department approves the local government debt management laws, regulations and policies, it will issue an annual financing scale control card to the land reserve agency to clarify the annual financing scale and reflect the amount of financing that has occurred. When a land reserve institution applies for financing from a banking financial institution, it shall present the financing scale control card in addition to the relevant documents. Before banking financial institutions approve financing, they should carefully check the existing financing line in the financing scale control card. The total amount of financing line to be approved and the financing line that has occurred this year (including the part of the loan that has been repaid this year) shall not exceed the annual available amount. For the financing scale, land reserve institutions that have reached the annual financing scale this year may not approve new project financing.

　　 Land reserve institutions listed in the directory may lend to banking financial institutions. Under the guidance of the national industrial policy, banking financial institutions shall, in accordance with relevant laws, regulations and regulatory requirements, follow the principles of marketization, and provide and manage land reserve loans to land reserve institutions listed in the directory under the premise of controllable risks. Banking financial institutions shall, in accordance with relevant regulations of relevant departments on land reserve loans, reasonably determine the loan period according to the credit status of the lender, the land reserve project cycle, and the fund return plan. The loan period shall not exceed five years. The reserved land belonging to the land reserve agency in the directory can only be used to reserve mortgage loans if it has a legal land use certificate. The purpose of the loan may not correspond to businesses related to mortgaged land compensation, pre-development and other businesses, but the loan use must comply with the specified land reserve fund use range, and must not be used for urban construction and other projects unrelated to the land reserve business. The reserved land under the names of institutions (including financing platform companies) not in the list before the issuance of this "Notice" shall be gradually regulated and managed in strict accordance with the requirements of the "Notice".

　　Land reserve financing funds should be strictly supervised in accordance with the principle of dedicated funds and closed management. The land included in the reserve shall not be used to guarantee the financing of institutions other than the land reserve institution. Where the land reserve institution embezzles the loan for other purposes, the relevant competent authority shall deal with it seriously in accordance with laws and regulations; the banking financial institution shall promptly take loan disposal and asset preservation measures, suspend the issuance of new loans to the land reserve institution, and comply with the law The provisions of the laws and regulations and the agreement of the loan contract shall be held accountable for the breach of contract by the land reserve agency.

　　 VI. Strict management of land bank funds

　　The land reserve agency shall, in the third quarter of each year, prepare a budget for the revenue and expenditure of land reserve funds for the next year based on the annual land reserve plan. After review by the competent department of land and resources, it shall be reported to the financial department at the same level for approval. Among them, those that fall within the scope of government procurement shall prepare government procurement budgets in accordance with regulations and strictly implement relevant regulations on government procurement. The budget of fund revenue and expenditure involves matters concerning land reserve loans, and the opinions of the relevant branch of the People’s Bank of the country and the banking regulatory bureau shall be sought.

　　 Strengthen the management of state-owned land income funds. The state-owned land income fund shall be withdrawn in a timely manner according to the prescribed proportions and used for land reserves in accordance with regulations. Land reserve agencies must use land reserve funds for the prescribed purposes and must not misappropriate them. Expenditures for cadastral investigation, land registration, land price evaluation, and the construction of fences and walls in the management and protection of land reserves shall be included in the use of land reserve funds with the approval of the financial department at the same level. In the implementation of the land reserve fund budget, if funds need to be approved by the financial department, the land reserve agency shall submit an application for the use of funds, and after review by the competent department of land and resources, report to the financial department at the same level for approval. The payment of land reserve funds shall be implemented in accordance with the relevant provisions of the fiscal treasury management system. The land reserve agency shall, at the end of each year, compile the final accounts of land reserve fund revenue and expenditure according to regulations, which shall be reviewed by the financial department at the same level and reported to the people's government at the same level for approval.

　　 This notice will be implemented from the date of issuance. Relevant departments and units in all regions must strictly implement the provisions of this notice. Units and individuals that violate the provisions of this notice will be dealt with in accordance with relevant laws and regulations.

　　 Ministry of Land and Resources Ministry of Finance

　　 The People's Bank of China China Banking Regulatory Commission

　　 November 5, 2012