Skip to main content
  Versions

 
  • Regulations for Trading and Redeeming Farmer Certificates

    No: 161000000582 Date(g): 12/3/1996 | Date(h): 22/10/1416

    Translated Document

    Based on the letter from His Excellency the Minister of Finance and National Economy No. 11836/19 dated 14/10/1416H, approving the guidelines for trading and processing farmers' certificates, we inform you that SAMA has developed an automated system for recording these certificates and managing their ownership through the Saudi Share Registration Company using the settlement system. This system aims to regulate procedures for transferring ownership, pledging, or assigning these certificates. Therefore, we request adherence to the following procedures when a farmer presents a certificate of agricultural entitlements to the bank for discounting, assignment, pledging, etc.

    Sale procedures must be followed according to Form (1), assignment procedures according to Form (2), and merger or division procedures according to Form (3), and the Bank is fully responsible for the correctness of the data contained in these forms.

    The Bank shall fill out the statement of farmers' certificates according to form (Farmer 2-3) and send it along with the original certificates along with the above-mentioned forms after filling them out to the Saudi Share Registration Company in order to enter all their data in the database dedicated for this purpose.

    Replacement notices as per form (3-7) will be issued to the new owners by the Saudi Share Registration Company containing the same data contained in the original certificate after completing the ownership transfer procedures and returning it to the bank for delivery to the new owner.

    It is recommended that the Treasury Department or the Investment Department be responsible for managing these operations.

    The bank shall provide SAMA with the procedures it will follow to implement these instructions as well as the names and signatures of those involved in these operations.

    The transfer of ownership of agricultural dues certificates will be stopped two weeks before the maturity date for each category in preparation for the disbursement of their dues to their owners, and the value of the dues of these certificates will be disbursed on their maturity date to the beneficiaries after matching them with the information contained in the registry through some local banks that will be determined by the Ministry of Finance and SAMA in due course.

    We have attached to this circular a sample of the original agricultural certificate issued by the Ministry of Finance and National Economy and samples of the signatures of those authorized to sign the certificates to be kept at the bank.

    For your information and approval and informing your branches accordingly.

     

     

    • Form (1) Procedures for Selling Agricultural Certificates

      The procedure is as follows:

      1. The farmer submits the original certificate to the bank along with a copy of the ID and the original for verification.
      2. The certificate holder fills out the Farmer Data Form (Form No. 2-5) himself, and the bank must ensure that the farmer's data is correct and matches the certificate.
      3. When the farmer agrees to the bank's price offer, he must fill out the sales contract (Farmer Form 2-4) and make sure that the data contained therein is correct according to the documents provided.
      4. After the contract is signed by the farmer, the bank employee verifies his signature and certifies it in the specified box, after which the bank employee issues a receipt to the farmer to receive his dues.
      5. At the end of the day, the bank employee fills out the list of farmers' certificates purchased by the banks (Farmer Form 2-3), along with the originals of the certificates and all contracts and forms that were filled out, in addition to copies of the sellers' IDs, and then delivers it to the Saudi Share Registration Company, which in turn signs it and hands the bank representative a copy of the statement showing the date of receipt of the new notices.
      6. The farmer must visit the bank according to the specified date to receive the value of the sale of the certificate, and the original receipt must be presented to the bank employee to confirm the identity of the recipient, in case there are no notes on the certificate by the Saudi Share Registration Company.
      7. Upon completion of the above steps, the agreed value will be delivered to the new owner.

      (Note that the Saudi Share Registration Company charges a sum of one hundred riyals (100 riyals) from the buyer for each ownership transfer).

       

    • Form (2) Procedures for Waiver of Agricultural Certificates

      The procedure is as follows:

      1. The farmer submits the original certificate to the bank along with a copy of his ID and the original for verification.
      2. The certificate holder fills out the Farmer Data Form (Form No. 2-5) himself, and the bank must ensure that the farmer's data is correct and matches the certificate.
      3. After verifying the certificate data, the bank provides the farmer with the first degree waiver document (Farmer Form 2-6) to fill it out and then verify the data contained therein based on the documents provided.
      4. The bank certifies the signatures of the waiver, after which the bank employee will issue a receipt to receive the new notice.
      5. At the end of the day, the bank employee fills out the statement of the relinquished farmers' certificates (Farmer Form 3-2), along with the originals of the certificates and all the contracts and forms that were filled out, in addition to copies of the sellers' IDs, and then delivers it to the Saudi Share Registration Company, which in turn signs it and hands the bank representative a copy of the statement indicating the date of receipt of the new certificates.
      6. On the date of receipt of the new notice, the bank employee will receive the original audit receipt and confirm the identity of the recipient in case there are no notes on the certificate by the Saudi Share Registration Company.
      7. Upon completion of the above steps, the new notice will be delivered to the new owner.

      (Note that the Saudi Share Registration Company charges a sum of one hundred riyals (SAR 100) from the transferee for each transfer of ownership).

    • Form (3) Procedure for Merging/Splitting Agricultural Certificates

      The procedure is as follows:

      1. The farmer submits the original certificate to the bank along with a copy of the ID and the original for verification.
      2. The certificate holder fills out the Farmer Data Form (Form No. 2-5) himself, and the bank must ensure that the farmer's data is correct and matches the certificate.
      3. After verifying the certificate data, the bank provides the farmer with a request to merge/split certificates of dues for farmers (Farmer Form 2-2) to fill it out and then verify the data contained therein based on the documents provided.
      4. The bank will validate the signature, after which the bank employee will issue a receipt to the farmer.
      5. At the end of the day, the bank employee fills in all the certificates to be merged or split in the total statement (Farmer Form 2-3), along with the originals of the filled-in certificates and forms, in addition to copies of the farmers' IDs, and then delivers it to the Saudi Share Registration Company, which in turn signs the form with the receipt and hands the bank representative a copy of the statement specifying the date of receipt of the new notices.
      6. On the date of receipt of the new notice, the bank employee will receive the original audit receipt from the farmer and verify the identity of the recipient, in case there are no notes on the certificate by the Saudi Share Registration Company.
      7. Upon completion of the previous steps, the new notice will be delivered to the farmer after his signature.

      (Note that the Saudi Share Registration Company charges a sum of one hundred riyals (SAR 100) for each merger or split ownership).

    • Signature Samples

       

      Signature Template for the Authorized Signatory on Payment Orders Issued by:

      Entity name: ........................................................................................

      Ext No: ........................................ Branch: ........................................

      Full name: Fahad bin Abdullah Ahmed Al-Dakan

      Job title: Director General of the General Department of Accounts.

      Authorization decision number and date: 10758/19 and dated: 3/9/1416 H.

      Amount authorized to sign: .............................................

       

       

      Authorized signatory signature form for payment orders drawn from:

      Entity Name: ........................................................................................

      Ext. No.: ........................................ Branch: ........................................

      Full Name: Abdullah bin Ibrahim bin Abdullah Al-Humaid

      Job Title: Assistant Undersecretary for Central Services.

      Authorization decision number and date: 10758/19 and dated: 3/9/1416 H.

      Amount authorized to sign: ..................................................

       

       

       

      Authorized signatory signature form for payment orders drawn from:

      Entity Name: ........................................................................................

      Ext. No: ........................................ Branch: ........................................

      Full name: Saud bin Hamdan Al-Hamdan.

      Job Title: Assistant Undersecretary for Financial Affairs and Accounts.

      Authorization decision number and date: 10758/19 and date: 3/9/1416 H.

      Amount authorized to sign up to: ................................................................