1. What type of land can be included in the land reserves?
The “Measures” specify land that can be included in land reserves. The particulars include state-owned land acquired in accordance with the law, purchased land, land obtained through the exercise of priority purchase rights, land that has undergone the relevant procedures for converting agricultural land and land resumption permission, and other land obtained legally.
2. What are the rights and duties of land reserve institution according to the Notice?
For land that has been included in land reserves, upon the permission of the respective municipal or county level people’s government bureaus of land and resources, the land reserve institution has the right to carry out preliminary development, protection, administration, provisional use or can arrange for preliminary financing activities for reserve land. The land reserve institution should carry out the necessary preliminary development for reserve land, especially land included in the reserves being collected in accordance with the law, to ensure that the land is in the required condition. Upon the completion of preliminary development, reserve land should be included in land supply plans of respective municipalities and counties, the procedure for which should be uniformly administered by the bureaus of land and resources of the respective municipal or county people’s government.
The Measures also specify that loans borrowed by land reserve institutions from financial institutions such as banks should be guaranteed loans; in the case of mortgages the land involved must be equipped with land use certificates. The law forbids various kinds of financial capital to be used as guarantees for loans for reserve land. Land reserve institutions shall not provide third party guarantees in any form.
