Circular No. 4036 — Regulates the Bookkeeping of Bank and Rural Credit Notes by Financial Institutions and Amends Circular No. 3,616 of November 30, 2012

The Collegiate Board of the Central Bank of Brazil, in a session held on July 15, 2020, based on Article 9 of Law No. 4,595 of December 31, 1964, Article 10-A, § 2, item I, and Article 10-C of Decree-Law No. 167 of February 14, 1967, Article 27-B, item I, and Article 27-D of Law No. 10,931 of August 2, 2004, and Article 1, § 1, of Complementary Law No. 130 of April 17, 2009,

R E S O L V E S:

Art. 1 This Circular regulates the exercise of the bookkeeping activity of Bank Credit Notes (Cédula de Crédito Bancário) and Rural Credit Notes (Cédula de Crédito Rural) by financial institutions.

Art. 2 Financial institutions are authorized to exercise the bookkeeping activity of Bank Credit Notes and Rural Credit Notes, observing the provisions of this Circular.

Sole Paragraph. Financial institutions may only perform the bookkeeping of Bank Credit Notes and Rural Credit Notes representing their own credit operations, except as provided in Article 7.

Art. 3 The bookkeeping issuance of Bank Credit Notes and Rural Credit Notes shall be carried out through an entry in an electronic bookkeeping system managed by financial institutions.

Art. 4 Financial institutions responsible for the electronic bookkeeping systems referred to in Article 3, as a condition for acting in the bookkeeping of Bank Credit Notes and Rural Credit Notes, must perform, among others, the following activities:

I - within the scope of their electronic bookkeeping systems:

a) the issuance of titles in bookkeeping form, upon order of the credit holder;

b) the insertion of the information referred to in Article 42-A of Law No. 10,931 of August 2, 2004, in the case of Bank Credit Notes, and Article 10-D of Decree-Law No. 167 of February 14, 1967, in the case of Rural Credit Notes, as well as documents with complementary information, such as statements or spreadsheets for calculating the outstanding balance of the credit operation underlying the title; and

c) the control of the effective or fiduciary ownership of the titles;

II - the provision to the debtor of payment instruments for the settlement of obligations constituted in the title;

III - the control of the financial flow of the titles, including advances, observing the provisions of § 2 of this article;

IV - the notification to debtors, upon the negotiation of the titles;

V - the registration or deposit of the titles in a centralized registration or deposit system operated by a registrar entity or central depository authorized by the Central Bank of Brazil;

VI - the provision of information about the titles to debtors, their holders or beneficiaries of guarantees constituted on them, or to other legally qualified interested parties; and

VII - the issuance of full-text certificates referred to in Article 6.

§ 1 Access by debtors, holders, beneficiaries of guarantees constituted on the titles, and other legally qualified interested parties to the electronic bookkeeping system shall be provided, among other means, through an electronic interface, via the internet.

§ 2 Financial resources related to payments made by debtors, including advances, shall be transferred to the holder or the beneficiary of the guarantee constituted on the title, if so stipulated in the instrument formalizing it, within one business day after receipt by the financial institution responsible for the bookkeeping of the title.

Art. 5 Financial institutions responsible for the electronic bookkeeping systems referred to in Article 3 must adopt procedures that ensure the integrity, authenticity, and validity of the bookkept titles.

Sole Paragraph. For the purposes of the electronic signature of Bank Credit Notes and Rural Credit Notes issued in bookkeeping form, the use of digital certification, as well as other secure identification methods, such as electronic password, authentication code issued by a personal and non-transferable device, and biometric identification, is admitted, provided they are previously accepted by the creditor and debtor.

Art. 6 Financial institutions responsible for the electronic bookkeeping systems referred to in Article 3 shall issue, upon request by the debtor or a legally qualified interested party, a full-text certificate of the Bank Credit Note and the Rural Credit Note, within a period of up to one business day, counting from the request.

§ 1 The issuance of the full-text certificate may occur electronically, observing the provisions of Article 5, sole paragraph, for the purposes of electronic signature of the certificate.

§ 2 The full-text certificate shall contain all information that allows for the adoption of registration procedures for guarantees before registrar entities, central depositories, Real Estate Registry, Titles and Documents Registry, or other types of Public Registries.

Art. 7 The transfer of bookkept Bank Credit Notes and Rural Credit Notes from the electronic bookkeeping system of the originating financial institution to the bookkeeping system of another financial institution is permitted, conditioned on:

I - the definitive sale of the title by the originating institution, without co-obligation; and

II - the execution of an operational agreement between the destination institution for bookkeeping and the originating institution, in order to allow the former to perform the activities referred to in Article 4, observing the provisions of Article 5.

Art. 8 Circular No. 3,616 of November 30, 2012, shall be amended as follows:

“Art. 1 ......................................................

§ 1 ..........................................................

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V - contract or credit title representing the credit operation.

..........................................................” (NR)

Art. 9 This Circular enters into force on the date of its publication.

Otávio Ribeiro Damaso Director of Regulation