Postponement of scheduled long-term credit repayments may be authorized by the bank with the approval of the Ministry of Finance for periods of up to one year in the case of collective farms that are unable to meet the due date for reasons beyond their control, such as a crop failure. At the same time the bank may discontinue credits or demand repayment before the due date in the event that borrowed funds are improperly or inefficiently used. Penalties are also provided for short-term borrowers who fail to respect contractual obligations. As a measure of assistance to poor cooperatives, the repayment of loans in the amount of 1.15 billion lei, contracted before 1968 and due in 1972, was remitted by decision of the Central Committee of the Romanian Communist Party in December 1971. The distribution of long-term credits to collective farms among different types of investment projects changed significantly during the 1960s. In 1962 and 1963 more than half the credits were granted for the expansion of livestock production, and one-fourth of the credits were devoted to the construction of farm buildings. In the last two years of the decade, however, only 5 percent and 3 percent of the credits, respectively, were earmarked for these purposes. Emphasis shifted in the mid-1960s to land improvement, the extension of orchards and vineyards, and vegetable production. In the 1967-69 period 83 percent of the investment credits were used for these projects. A lack of significant progress in the livestock production of collective farms, despite the heavy investment, was the main reason for the drastic reduction in credits to this farm sector. In mid-1971 the bank was authorized to grant credits to private farmers and to individual members of collective farms for periods of up to five years at an annual interest rate of 3 percent. These credits may be used to purchase for breeding and production purposes a limited number of cattle, sheep, bee colonies with hives, and fruit tree seedlings for orchards up to 7.4 acres in size. Credits may be granted up to 70 percent of the purchase value of these items. To ensure repayment of the loans, recipients must conclude contracts with state procurement agencies or collective farms for the sale of their products.