The following expressions, with the provided definitions, will be used in this bylaw:
A. Law: The Law of Targeting Subsidies passed by the Parliament on 23/10/1388 [1/13/2010].
B. Organization: the Organization for Targeting Subsidies, described by article 15 of the Law.
C. Resources: Allotted resources of this bylaw in each year, including the resources covered by article 8 of the Law, and other legal resources, approved by the general assembly of the Organization.
D. Assistances covered by article 8 of the Law: Assistance provided by this article including
2. Subsidy for loan interests
3. Managed funds for granting financial services.
E. Managed funds: Funds made available by the Organization to the agent banks to provide financial services for real and legal entities towards meeting the goals of article 8 of the Law. These funds are to be used under the supervision of the Organization and the executive body in charge of making investments.
F. Subsidies for interest on financial services: Funds allotted to eligible individuals from the sources indicated in article 8 for compensating part of the interest payments for provided financial services, in accordance with the contract between the executive body and the agent bank.
G. Grant: Funds that are withdrawn from the sources indicated in article 8 of the Law for compensating part of the implementation costs of businesses and other economic activities that are related to implementing the Law, whose provision by other sources of this article is deemed impossible by the Organization. Grants are to be paid based on the contract between the executive body and the agent bank.
H. Working group: The working group for developments in the economy that is the topic of law number 257711/44252, dated 23/12/1388 [3/4/2010], approved by the cabinet ministers.
I. Support package: The support package is a collection that includes the following:
Prioritized projects, means of support, resources that need to be grouped based on “interests for financial services”, grants and managed funds, the period of support and the commitments of the executive body regarding control of the final price, optimization of energy use, and other necessary issues, as determined by the working group.
J. Agent banks: Banks or financial credit centers, government or non-government owned, that are established with a permit from the Central Bank, or by an order of the law, and are contractual partners with the Organization or the executive body.
Within the framework of the expenditures defined in article 8 of the Law, the following support packages will be prepared by the executive bodies and approved by the work group:
1. Support package for mines and industries.
2. Support package for agriculture.
3. Support package for intra- and inter-city transportation.
4. Support package for industrial level production of bread and support package for the expansion of non-petroleum exports.
5. Support package for the expansion of electronic services.
6. Support package for the optimization of energy consumption in petrochemical units and refineries.
7. Support package for the optimization of energy consumption in power plants and water and waste treatment companies.
8. Support package for trade unions and workshops under the umbrella of the Law of Trade Unions and the Law of Cooperatives
9. Support package for city and village municipalities
To receive lines of credit for the following year, each year, all executive bodies covered by the Law are required to submit a list of the following to the Organization, at most by the end of the month of Aban [8th month of the Persian calendar year]:
All activities, plans, projects, commitments, and the proposed topics of the section or sections from the relevant support packages from previous years (which had been approved by the working group). These are to be submitted along with the list of requested resources, separated into grants, interest on financial services, and managed funds.
Each year, by a maximum of 30 days after the budget is passed, and based on the proposals of the executive bodies and sources of this bylaw, the Organization is required to submit the following:
The lines of credit of each section, separated into: interest on financial services, grants, and managed funds; and based on the value of production, value of exports, level and yield of energy, and level of support as a result of discriminatory prices.
Clause: Drafting the directions for elections, and the framework for receiving progress reports, as well as the calculation of the indexes of article 4 and the method of their use, are the responsibility of the Organization.
The Organization is required to give the necessary resources and the lines of credit that are the subject of this bylaw to the agent banks. These resources are to be provided periodically in the appropriate time points, based on the content of the Organization’s charter, and in accordance with the quota approved by the general assembly of the Organization in article 4 of this bylaw, based on the contract between the two parties.
Clause: The general assembly of the Organization, each year by proposal of the Organization, will make a list of the agent banks, with priority to specialized banks.
The relevant executive bodies will introduce eligible individuals, real or legal, to the agent banks. This will be done in accordance with funds for each section.
All the completed payments that are the topics of this law (in the form of grants and subsidies for interests on financial services) will be sent to a designated spending account.
The involved executive bodies are required to declare the preconditions for using the managed funds to the agent banks. These include: amount, kind of use, period of utilization, method of repayment, obtainable collaterals and guarantees, and other effective situations in the topic, in accordance with the contract between the parties. These banks will be responsible for the conditions established by the executive bodies, as well as the rules and regulations governing the banking system.
The payment of subsidies for interest on financial services and grants in return for receiving a collateral (equivalent to the subsidy or assistance) is conditional upon the contract between the agent bank and the executive body on one side, and the agent bank and the applicant on the other. In case the goals stated in the contract are achieved, the collateral will be returned. In case the goals stated in the contract are not reached (as reported from the executive body to the bank), the applicant is required to the repay all used funds, as well as the related interests and fines.
Clause 1: The agent bank and the executive body, independently, will supervise the means of expenditure of the resources, so the funds are spent in the defined areas as defined by the contract.
Clause 2: In the contract between the agent bank and the applicant, it is necessary that, alongside the pre-conditions of the bank, the applicant’s commitments to the criteria established by the executive body be stipulated.
Clause 3: The Organization must designate the authority and official signatories who will introduce the real and legal individuals. These authorities must be introduced to the agent banks. Any change in this regard from the Organization must be announced to the agent banks in a written format.
Clause 4: In cases of provincial distribution of the line of credit for the managed funds, it is necessary that the chart for distribution of provincial lines of credit be drafted by the Organization and the executive body and be announced to the agent banks.
Regarding funds received through re-paid loans, the agent banks must act according to the agreed contract between the parties to return the portion that belongs to the Organization.
In accordance with the contract with the executive body, agent banks are required to provide financial services and to declare any inconsistencies.
Agent banks are required to submit a progress report to the Organization, with separate headings for subsidies for interest on financial services, grants, and managed funds. This should be consistent with the contract between the parties.
To facilitate follow-up and supervision over the implementation of article 8, the Organization (with cooperation from the relevant bodies) is required to take advantage of software programs for plan evaluations in all cases related to article 8 of the Law. Regarding this, the executive bodies, with cooperation from all individuals covered by the law, are required to enter the manner in which allotted resources were spent, including complete details, in the designated computer program. These are to be submitted, along with progress reports, to the Organization in 3-month time installments.
Clause 1: Failure by individuals to carry out the responsibilities outlined in this article will be subject to the criteria designated in the executive bylaw of article 10 of the Law.
Clause 2: For transparency, control, and supervision over the provided assistance and financial services, the Organization may take the necessary actions to draft the needed progress reports in the area of its responsibilities and assigned duties. The Organization may utilize the resources of the executive bodies, although this action does not contradict the duties and responsibilities of the executive body and the agent bank.
If individuals eligible for the assistance specified in article 8 of the Law act beyond their commitments in increasing productivity and efficiency of energy use (as declared in writing by the executive body), the general assembly of the Organization may give incentives in accordance with their progress.
Supervision over the correct implementation of this bylaw is the responsibility of the Organization (within the framework of its charter) and the related executive bodies.