Agrarian law. Trust agreement (most important)

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Agrarian law. Trust agreement (most important)

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17. Trust management agreement

On trust management agreement property referred to in paragraph 3 of Art. 10 of the Federal Law "On Agricultural Cooperation", one party transfers to the other party (trustee) for a certain period of time the property in trust, and the other party undertakes to manage this property in the interests of the founder of the management or the person specified by him.

Such a transfer of property does not entail a transfer of ownership. The trustee has the right to perform any legal and factual actions with respect to the property transferred to him under the agreement, but the law or the agreement may provide for restrictions on certain such actions. Transactions with the property transferred to trust management are made by the trustee on his own behalf, indicating at the same time that he acts as such a manager.

He submits to the founder of the department a report on his activities within the time and in the manner established by the agreement on trust management of property. The agreement may provide for remuneration to the trustee; he also has the right to compensation for the necessary expenses incurred by him during the trust management of property, at the expense of income from the use of this property. The trustee, who has not shown due care for the property of the founder of the management, compensates for losses caused by the loss or damage to property, as well as lost profits.

The trustee personally bears obligations under the transaction made by him in excess of the powers granted to him or in violation of the restrictions established for him.

The contract of trust management of property is concluded for a period not exceeding five years.

In the absence of a statement by one of the parties on the termination of the contract at the end of its validity period, it is considered extended for the same period and on the same conditions that were provided for by the contract.

If none of the agricultural organizations and (or) none of the peasant (individual) farms formed as a result of the reorganization of an agricultural organization have 51% of the total amount of property share contributions attributable to indivisible objects of production infrastructure, or in the case of If a production cooperative, which has the right to include indivisible objects of production infrastructure in its indivisible fund, refuses to do so, one or more consumer cooperatives are formed to use these objects.

Author: Zavrazhnykh M.L.

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