CMN Resolution No. 4810 - Establishes Emergency Measures for Rural Credit Procedures Due to Social Distancing Measures to Mitigate Pandemic Impacts

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on April 30, 2020, considering the provisions of Article 4, items VI, of Law No. 4,595 of 1964, Articles 4, 5, 10, item III, and 14 of Law No. 4,829 of November 5, 1965, and Article 50, item II, of Law No. 8,171 of January 17, 1991,

R E S O L V E D:

Article 1. Section 4 (Beneficiaries) of Chapter 1 (Preliminary Provisions) of the Rural Credit Manual (MCR) shall be effective with the following alteration:

“10 - For operations contracted between March 1 and June 30, 2020, the presentation of the registration in a notary office of the documentation proving the contractual relationship between the landowner and the beneficiary tenant of the rural credit, including the letter of consent, referred to in items 7 and 8, is waived, provided that the landowner informs the financial institution, electronically, of the existence of said relationship.” (NR)

Article 2. Section 9 (Transitional Norms) of Chapter 2 (Basic Conditions) of the MCR is instituted, with the following wording:

“1 - The presentation of proof of application in the acquisition of inputs and payment of labor, as referred to in MCR 2-5-11-“a”, if requested by the financier until June 30, 2020, may be carried out by the borrower until July 31, 2020.

2 - For the purpose of proving the acquisition of vehicles, machinery, and equipment, resulting from disbursements made between March 1 and June 30, 2020, the delivery of the documents referred to in MCR 2-5-11-“b” may be carried out until July 31, 2020.

3 - Exceptionally between the date of publication of the Resolution instituting this Section and June 30, 2020, the granting of financing directed to cattle and buffalo farming is admitted without the presentation of the Animal Transit Guide (GTA), as referred to in MCR 2-1-21-“a”-II, and the sanitary form, or equivalent document, as referred to in MCR 2-1-21-“b”, which must be delivered to the financial institution until July 31, 2020, maintaining the other conditions set forth in MCR 2-1-21.

4 - Until June 30, 2020, on occasions when the supervision of the rural credit operation must be carried out in the manner of MCR 2-7-10, the financial institution may exceptionally refrain from verifying the application of resources, provided that:

a) the partial or total application of the operation's resources cannot be proven through documentary analysis or remote sensing;

b) the partial or total application of the operation's resources cannot be verified by the on-site method at a later date after the date mentioned in this item; and

c) the absence of verification is based on a supervision report or other internal document of the financial institution, with justifications and evidence demonstrating the unfeasibility of supervision through the methods referred to in items “b” and “c” of MCR 2-7-3 and the material impossibility of subsequent supervision referred to in item “b” of this item.

“5 - Until June 30, 2020, the local inspection referred to in MCR 2-8-8 is waived.” (NR)

Article 3. Section 6 (Transitional Norms) of Chapter 3 (Operations) of the MCR shall be effective with the following alterations:

“19 - Until June 30, 2020, for the extension and rescheduling of the repayment of credit operations intended for agricultural working capital, as referred to in MCR 3-2-25, the borrower is exempt from presenting to the financial institution proof that the product is stored, when it is not possible to send it electronically, and must retain it for subsequent presentation when requested.” (NR)

“20 - Until June 30, 2020, simplified renewal of agricultural and livestock working capital operations is admitted, even in cases where this mechanism is not expressly authorized in the respective contractual instrument, observed that:

a) prior to the renewal, express consent of the borrower is necessary, by any means that allows subsequent proof, in which the simplified budget containing the activity for the new cycle, the financed value, and the disbursement schedule, according to the productive cycle, must be stated, making the appropriate registration in the Rural Credit and Proagro Operations System (Sicor);

b) the renewal must be carried out through a contractual amendment to the original operation, maintaining the same conditions and guarantees presented therein;

c) in localities where notary offices are not operating regularly, the annotation of the contractual amendment or guarantees, when necessary, must be carried out as soon as possible;

d) the provisions of this item also apply to operations contracted under the National Program for Support to Medium-Sized Rural Producers (Pronamp) and the National Program for Strengthening Family Agriculture (Pronaf), observing the specific requirements of these programs, where applicable;

e) this option does not apply to operations backed by resources from the transfers referred to in MCR 10-4-12.” (NR)

Article 4. This Resolution enters into force on the date of its publication.

Roberto de Oliveira Campos Neto President of the Central Bank of Brazil