BCB Resolution No. 87 — Consolidation of Sections 6 and 5 of the Rural Credit Manual (MCR) and Revocation of Circulars

Resolução No. 4,652

The current text of the MCR is available at the following electronic address: www3.bcb.gov.br/mcr.

BCB RESOLUTION NO. 87, OF APRIL 20, 2021

Provides for the consolidation of Sections 6 (Accounting and Control) of Chapter 3 (Operations) and 5 (Calculation and Charging of Financial Cost for Deficiency in Fulfillment of Obligations) of Chapter 6 (Resources) of the Rural Credit Manual (MCR) and for the revocation of Circulars of the Central Bank of Brazil currently codified in the MCR.

The Collegiate Board of the Central Bank of Brazil, in a session held on April 20, 2021, in view of arts. 5, 6, item I, 21, § 2, of Law No. 4,829, of November 5, 1965, art. 39 of the Regulation annexed to Decree No. 58,380, of May 10, 1966, and art. 5 of Decree No. 10,139, of November 28, 2019,

R E S O L V E:

Art. 1 The following are consolidated in the Rural Credit Manual (MCR), as annexes to this Resolution:

I - Section 6 (Accounting and Control) of Chapter 3 (Operations); and

II - Section 5 (Calculation and Charging of Financial Cost for Deficiency in Fulfillment of Obligations) of Chapter 6 (Resources).

Art. 2 The following are revoked:

I - Circular No. 1,268, of December 23, 1987;

II - Circular No. 1,536, of October 3, 1989;

III - Circular No. 1,961, of May 23, 1991;

IV - Circular No. 3,397, of July 23, 2008;

V - Circular No. 3,460, of July 23, 2009;

VI - Circular No. 3,620, of December 21, 2012;

VII - Circular No. 3,879, of February 22, 2018;

VIII - Circular No. 3,946, of June 25, 2019; and

IX - Circular No. 4,017, of May 8, 2020.

Art. 3 This Resolution enters into force on May 1, 2021.

Otávio Ribeiro Damaso

Director of Regulation

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TITLE : RURAL CREDIT

CHAPTER : Operations - 3

SECTION : Accounting and Control - 6 (*)

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1 - Rural credit must have distinct registration in the financial institution's accounting, according to its characteristics, as provided in this Section.

2 - The Rural Credit and Proagro Operations System (Sicor) is intended for the registration of rural credit operations granted by financial institutions authorized to operate in rural credit, as well as for the classification of enterprises in the Agricultural Activity Guarantee Program (Proagro).

3 - The Sicor has the following objectives:

a) provide data on rural credit registered therein to the general public;

b) avoid parallelism in credit assistance;

c) enable monitoring of rural credit operations;

d) enable monitoring and control of operations classified under Proagro;

e) aggregate information and data essential to the management of agricultural insurance and agricultural activity guarantee policies;

f) provide federal, state, and municipal agencies responsible for these policies with access to rural credit data.

4 - The Department of Regulation, Supervision and Control of Rural Credit and Proagro Operations (Derop) of the Central Bank of Brazil is responsible for the administration of the Sicor, with the following duties, at a minimum:

a) publish instructions for registering operations in the Sicor, including regarding the method of sending data and information by financial institutions to the Central Bank of Brazil; and

b) provide broad dissemination of the system's data and information, primarily through the Central Bank of Brazil's website.

5 - Operations carried out under the National Program for Strengthening Family Agriculture (Pronaf), under the revolving credit modality, must be registered in the Sicor for the total value of the credit extended and re-registered in the event of renewal.

6 - Enterprises assisted by revolving credit and classified under Proagro, through a specific clause, must be mandatorily registered at the time/production cycle to which they refer, through new records in the Sicor:

a) specifying all data related to the supported enterprise, including the credit to which it is linked;

b) using specific Sicor codes for each enterprise;

c) indicating the date of operation registration.

7 - In discount operations, the retention of invoices linked to the credit is waived, with the financial institution responsible for:

a) requiring the discounter to provide a detailed list of invoices;

b) verifying and authenticating the list;

c) stamping the invoices, characterizing their link to the credit, before returning them to the discounter.

8 - It is prohibited to account for the discount of commercial bills of exchange and other general credit instruments under the title "Rural Financing," even if the predominant activity of the discounter is agriculture.

9 - Regarding documents related to rural credit financing whose original versions are not provided in digital format, observed the specific legislation regarding the matter, the following provisions apply:

a) documentation related to the rural credit operation, including a copy of the credit instrument and the registration form that served as the basis for the operation's approval, must be kept at the operating branch or the centralizing unit, for a period of up to 1 (one) year after settlement, for purposes of eventual supervision by the Central Bank of Brazil, without prejudice to other special provisions regarding the matter;

b) it is admitted that the original document pertaining to the operation be temporarily replaced in the file by a copy, in the event of its withdrawal for any procedure by the financial institution.

10 - The declassified operation must be excluded from the title "Rural Financing" when it loses the characteristics of rural credit.

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TITLE : RURAL CREDIT

CHAPTER : Resources - 6

SECTION : Calculation and Charging of Financial Cost for Deficiency in Fulfillment of Obligations - 5 (*)

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1 - The financial institution that incurs a deficiency in fulfilling the obligations and sub-obligations to direct resources for application in rural credit of Mandatory Resources, Rural Savings, and Letters of Credit of the Agribusiness (LCA) shall be subject, on the first business day of August of the year in which the fulfillment period ends, to the payment of financial cost, in accordance with this Section.

2 - Financial cost is the financial compensation, owed by the financial institution to the Central Bank of Brazil, for the non-fulfillment of the obligations and sub-obligations to direct resources for application in rural credit.

3 - The base for calculating the financial cost is the deficiency in application in rural credit in the obligations and sub-obligations to direct resources ascertained in the position relative to the month of June of the year in which the fulfillment period of the obligation ends, according to what is ascertained in the Statement of Obligations and Rural Credit Applications.

4 - The financial cost will be calculated on the deficiency ascertained in the Statement of Obligations and Rural Credit Applications, by adopting the following formula:

CFd = Defe x (RmOpC - Tjme)

in which:

CFd = Financial Cost of the deficiency in fulfilling the obligations and/or sub-obligations to direct resources for application in rural credit, expressed in reais, with two decimal places and mathematical rounding;

Defe = Deficiency in fulfilling the obligations and/or sub-obligations to direct resources for application in rural credit, expressed in reais, with two decimal places, according to the position reported in the Statement of Obligations and Rural Credit Applications relative to the month of June of the year in which the fulfillment period of the obligation ends;

RmOpC = Average yield of the financial institution's credit operations portfolio that presents the deficiency, expressed in annualized terms, with four decimal places and mathematical rounding, and calculated based on data contained in the Analytical Balance Sheet (Document No. 1) - Cadoc Code 4010 of the financial institution, relative to the months corresponding to those of the reference agricultural year; and

Tjme = Weighted average interest rate by the contracting value of rural credit operations contracted by all financial institutions, in the fixed-rate modality, registered in the Rural Credit and Proagro Operations System (Sicor), granted in the reference agricultural year to fulfill the obligation and/or sub-obligation, expressed in annualized terms, with four decimal places and mathematical rounding.

5 - The RmOpC will be calculated by the Central Bank of Brazil, by adopting the following formula:

RmOpC = RdOpC / SOpC

in which:

RdOpC = Income from Credit Operations, observed in the breakdown of sub-group 7.1.1.00.00-1 of the Analytical Balance Sheet (Document No. 1) - Cadoc Code 4010 of the financial institution, referring to the months from July to June of the reference agricultural year, subtracted from the income observed, in the same period, in the accounting title:

a) 7.1.1.42.00-7 (Rural Financing Income – Applications with Directed Resources at Sight), when it concerns a deficiency relative to the obligation or sub-obligation to apply mandatory resources;

b) 7.1.1.43.00-6 (Rural Financing Income – Applications with Directed Resources from Rural Savings), when it concerns a deficiency relative to the obligation or sub-obligation to apply rural savings resources; and

c) 7.1.1.44.00-5 (Rural Financing Income – Applications with Directed Resources from LCA), when it concerns a deficiency relative to the direction or sub-direction of application of resources captured through the issuance of LCA.

SOpC = Balance of Credit Operations, observed in sub-group 1.6.0.00.00-1 of the Analytical Balance Sheet (Document No. 1) - Cadoc Code 4010 of the financial institution, referring to the months from June to June of the reference agricultural year and subtracted from the balance observed, in the same period, in the accounting title:

a) 1.6.3.15.00-2 (Rural Financing – Applications with Directed Resources at Sight), when it concerns a deficiency relative to the obligation or sub-obligation to apply mandatory resources;

b) 1.6.3.25.00-9 (Rural Financing – Applications with Directed Resources from Rural Savings), when it concerns a deficiency relative to the obligation or sub-obligation to apply rural savings resources; and

c) 1.6.3.35.00-6 (Rural Financing – Applications with Directed Resources from LCA), when it concerns a deficiency relative to the direction or sub-direction of application of resources captured through the issuance of Letters of Credit of the Agribusiness (LCA).

6 - The RmOpC of cooperative banks, confederations of credit cooperative central organizations, and central credit cooperatives will be calculated based on the aggregation of data contained in the Analytical Balance Sheets (Document No. 1) - Cadoc Code 4010 of all entities of the cooperative system granting rural credit operations.

7 - The Tjme will be calculated by using the following rates, according to the type of obligation or sub-obligation:

a) average interest rate of fixed-rate rural credit operations contracted to fulfill the obligation to direct Mandatory Resources, except for operations contracted under the National Program for Strengthening Family Agriculture (Pronaf) and the National Program for Supporting the Medium Rural Producer (Pronamp);

b) average interest rate of fixed-rate rural credit operations contracted under Pronaf;

c) average interest rate of fixed-rate rural credit operations contracted under Pronamp;

d) average interest rate of fixed-rate rural credit operations contracted to fulfill the obligation to direct Rural Savings Resources; and

e) average interest rate of fixed-rate rural credit operations contracted to fulfill the obligation to direct LCA Resources.

8 - The Central Bank of Brazil will publish the Tjme values by the last business day of the month following the end of the reference agricultural year.

9 - When the difference between the RmOpC and the Tjme is less than zero, the result of this difference will be considered zero.

10 - The payment of the financial cost:

a) will be previously informed to the financial institution, through the Rural Credit Obligations System (Sisex), by the last business day of July of the year in which the fulfillment period ends; and

b) must be made exclusively in cash, at the initiative of the financial institution, through the Central Bank's Posting System (SLB).

11 - The financial institution that is not the holder of a Bank Reserves account or a Settlement Account and that incurs the deficiency ascertained in accordance with this Section must indicate the financial institution that is the holder of a Bank Reserves account to which the pertinent charges should be sent and any refunds related to the financial costs referred to in this Section should be credited.

12 - The payment of financial cost on a date subsequent to the first business day of August of the year in which the fulfillment period ends will be updated from the due date until the date of effective payment, by applying the Selic Rate.