BCB Resolution No. 218 — Conditions for Registration and Centralized Deposit of Agricultural Credit Letters (LCA) and Related Credit Rights

Resolution No. 218

BCB RESOLUTION NO. 218, OF MARCH 30, 2022

Establishes the conditions for the registration and centralized deposit of the Agricultural Credit Letter (LCA) and the credit rights linked to it.

The Collegiate Board of the Central Bank of Brazil, in a session held on March 30, 2022, based on Article 9 of Law No. 4,595, of December 31, 1964, Articles 22 and 28 of Law No. 12,810, of May 15, 2013, and taking into account the provisions of Article 27, paragraph 1, item I, and Article 35 of Law No. 11,076, of December 30, 2004,

RESOLVES:

CHAPTER I
SUBJECT MATTER AND SCOPE OF APPLICATION

Art. 1. This Resolution establishes the conditions for the registration and centralized deposit of the Agricultural Credit Letter (LCA) and the credit rights linked to it in systems of registrant entities and central depositories of financial assets.

CHAPTER II
REGISTRATION OR CENTRALIZED DEPOSIT OF THE LCA

Art. 2. The LCA issued in book-entry form must be registered or deposited in an entity authorized by the Central Bank of Brazil to perform the activity of registration or centralized deposit of financial assets.

Art. 3. The registration and centralized deposit of the LCA must contain, at a minimum, the following information:

I - identification of the issuer;

II - identification of the holder;

III - serial number, place, and date of issuance;

IV - form of issuance;

V - maturity date or, if issued for installment payment, a breakdown of the values and maturity dates of the various installments;

VI - nominal issuance value;

VII - remaining nominal value;

VIII - reference date for the remaining nominal value;

IX - interest rate and other bases for remuneration or monetary adjustment;

X - form and frequency of capitalization and, if applicable, monetary adjustment;

XI - type of guarantee;

XII - conditions for redemption or early maturity, if any; and

XIII - identification code, in the registration or centralized deposit system, of the credit rights linked to it or the set of these rights.

CHAPTER III
REGISTRATION OR CENTRALIZED DEPOSIT OF CREDIT RIGHTS LINKED TO THE LCA

Art. 4. The credit rights linked to the LCA must be registered or deposited in an entity authorized by the Central Bank of Brazil to perform the activity of registration or centralized deposit of financial assets.

Art. 5. The registration and centralized deposit of the credit rights linked to the LCA must contain, at a minimum, the following information:

I - name of the instrument;

II - identification of the creditor;

III - identification of the debtor;

IV - identification of the custodian;

V - date of formalization of the instrument;

VI - maturity date;

VII - balance or nominal value, on the date of linkage;

VIII - date of linkage;

IX - remaining balance or nominal value;

X - reference date for the remaining balance or nominal value;

XI - interest rate and other bases for remuneration or monetary adjustment;

XII - form and frequency of capitalization and, if applicable, monetary adjustment;

XIII - type of guarantee, if any;

XIV - form and frequency of amortization; and

XV - identification code, in the registration or centralized deposit system, of the set of credit rights of which they are part, when reported in the LCA registration.

Sole Paragraph. In the event that the credit right linked to the LCA is an instrument representing debts and liabilities classified as credit operations, in accordance with current legislation and regulations, the registration and deposit must additionally contain the following information:

I - contract code in the Credit Information System (SCR);

II - modality and submodality codes in the SCR;

III - Standardized Credit Operation Identifier (IPOC);

IV - "Ref Bacen" code in the Rural Credit and Proagro Operations System (Sicor) and the Agricultural Activity Guarantee Program (Proagro), when applicable;

V - purpose, indicating whether the instrument representing debts and liabilities relates to a credit operation for working capital, investment, or marketing; and

VI - compliance status.

CHAPTER IV
GENERAL PROVISIONS

Art. 6. In the event of LCA registration, financial institutions must report to the registrant entity, by the third business day of each month, the remaining balance or nominal value of the LCA and the credit rights linked to it as of the last day of the previous month.

Art. 7. The entity in which the LCA is registered or deposited must:

I - verify the sufficiency, with respect to the updated nominal value of the LCA, of the total updated balance or nominal value of the credit rights linked to it, in accordance with current legislation;

II - inform the LCA issuing institution of any insufficiency identified in accordance with item I, by the first subsequent business day after the date of verification; and

III - immediately notify the Central Bank of Brazil of the occurrence of the situation referred to in item II.

Sole Paragraph. The verification referred to in item I must be carried out based on the information available in the registrant entity or central depository.

Art. 8. The format of the information relating to the registration or deposit of the credit rights linked to the LCA must be compatible with the format of those sent to the Credit Information System, and with those registered in the Rural Credit and Proagro Operations System, when applicable, even if this information is not provided to these systems individually.

Art. 9. This Resolution enters into force on May 2, 2022.

Otávio Ribeiro Damaso
Director of Regulation
Director of the Organization of the Financial System and Resolution