Circular No. 3460 — Establishes MCR Document 24-1 for formalizing interest in transferring resources from rural credit application deficiencies and outlines procedures for verifying compliance with MCR 6-2 and MCR 6-4 requirements

Circular No. 3460, of July 23, 2009

CIRCULAR NO. 3460

Establishes MCR Document 24-1 for formalizing the communication of interest in the transfer of resources arising from deficiencies in rural credit application and disseminates procedures for verifying compliance with the requirements of MCR 6-2 and MCR 6-4, in consonance with the provisions of Resolutions Nos. 3,745 and 3,746, both of June 30, 2009.

The Collegiate Board of the Central Bank of Brazil, in a session held on July 23, 2009, having in view the provisions of item 6-1-19 of the Rural Credit Manual (MCR), published by Resolution No. 3,746, of June 30, 2009, and based on art. 3 of Resolution No. 3,745, of June 30, 2009,

D E C I D E D:

Art. 1. MCR Document 24-1 is hereby established, with models for communication to the Executive Management of Regulation and Control of Rural Operations and Proagro (Gerop) of the Central Bank of Brazil, related to the transfer of resources arising from the collection of deficiencies in rural credit application, regarding mandatory resources (MCR 6-2) and rural savings (MCR 6-4), as provided for in § 1 of art. 1 of Resolution No. 3,745, of June 30, 2009.

§ 1. It is incumbent upon the interested financial institution to define the date for receiving the resources to be transferred by the Central Bank of Brazil, which will remain at its disposal for a maximum period of 12 (twelve) months, starting from the first business day of August of the year of the collection of deficiencies, with no extension permitted under any title.

§ 2. The communication requesting the transfer of resources must be sent to Gerop by the business day prior to the date defined in terms of § 1, signed by two directors, one of whom is responsible for the rural credit area.

§ 3. The return, to the Central Bank of Brazil, of the transferred resources must occur on the same date scheduled for their definitive return to the respective financial institution, on the first business day of August of the year following the year of the collection of deficiencies.

§ 4. By the business day prior to the date of return of the resources, the Central Bank of Brazil will notify the financial institution to proceed with the return of the resources transferred to it, observing the provisions of § 4, item III, of art. 1 of Resolution No. 3,745, of 2009.

§ 5. The financial institution, by the last business day of July of the year following the year of the collection of deficiencies, must formalize communication to Gerop regarding the return of the resources transferred to it, signed by two directors, one of whom is responsible for the rural credit area.

Circular No. 3460, of July 23, 2009

Art. 2. The financial institution that receives the resources referred to in Resolution No. 3,745, of 2009, must compute the respective value as obligations/sub-obligations for a maximum period of 11 (eleven) months, starting from the first business day of August of the year of the collection of deficiencies, observing the following conditions:

I - the monitoring, control, and verification of the application of the transferred resources will be exercised together with those of the obligations of the current period, based on the information required and provided in terms of Document 24 of the unified MCR, including for the purposes of item V;

II - a multiplier calculated in terms of the provisions of § 6 of art. 1 of Resolution No. 3,745, of 2009, must be applied to the daily average balances of the transferred resources;

III - the transferred resources and those obtained in the manner of item II must be added to the obligations and sub-obligations of the current period, from the date of their receipt, inclusive, until the last business day of the following June, for purposes of compliance and verification;

IV - the transferred resources arising from the deficiency of the 28% (twenty-eight percent) sub-obligation, valid until June 30, 2009, in section 6-2 of the MCR, shall be computed for purposes of application and verification proportionally to the "Proger Sub-obligation" and the "Cooperative Sub-obligation", established by Resolution No. 3,746, of June 30, 2009;

V - due to the conditions provided in §§ 7 and 8 of art. 1 of Resolution No. 3,745, of 2009, in verifying compliance with obligations and sub-obligations, the average balances of applications will be computed:

a) to initially meet the obligations/sub-obligations of the current period; and

b) to satisfy the obligations/sub-obligations arising from the resources transferred in the manner of Resolution No. 3,745, of 2009.

Sole Paragraph. If a deficiency in application is verified at the end of the compliance period regarding the total obligation/sub-obligation, the financial institution shall be subject to:

I - if the value of the deficiency found is less than or equal to the amount of resources calculated in the manner of item II of the caput of this article, observing the direction of obligations and/or sub-obligations, to the payment of a fine provided for in § 7 of art. 1 of Resolution No. 3,745, of 2009;

II - if the value of the deficiency found is greater than the amount of resources calculated in the manner of item II of the caput of this article, observing the direction of obligations and/or sub-obligations:

a) to the payment of a fine in terms of §§ 7 and 8 of art. 1 of Resolution No. 3,745, of 2009, applied to the amount of resources considered in the caput of this item;

Circular No. 3460, of July 23, 2009

b) to the provisions provided for in MCR 6-2-15, 16 and 17 and in MCR 6-4-13, 14 and 15, according to the source of the resources, regarding the deficiency value that exceeds the amount of resources considered in the caput of this item.

Art. 3. Gerop is authorized to promote the update of MCR Document 24-1.

Art. 4. As a consequence, the necessary sheets for the update of the MCR are attached.

Art. 5. This circular enters into force on the date of its publication.

Belo Horizonte, July 23, 2009.

Antonio Gustavo Matos do Vale
Director

This text does not replace the published version in the DOU and Sisbacen.

RURAL CREDIT MANUAL
Index

DOCUMENT NAME
1 (to be used)
2 (to be used)
3 (to be used)
4 (to be used)
5 Recor - Registration Data
6 (to be used)
7 (to be used)
8 (to be used)
9 (to be used)
10 (to be used)
11 (to be used)
12 (to be used)
13 (to be used)
14 (to be used)
15 (to be used)
16 (to be used)
17 Proagro - Revenues
18 Proagro - Loss Communication (COP)
19 (to be used)
20 Proagro Traditional - Summary of Judgment of Coverage Request 20-1 "Proagro Mais" - Summary of Judgment of Coverage Request 21 Proagro - Expenses: Payment, Reimbursement and Return 22 Proagro - Expenses: Reimbursement and Payment - Calculation Methodology 23 Proagro - Regulation Extract 24 Statement of Obligations and Rural Credit Applications 24-1 Resources Collected by the Central Bank of Brazil for Deficiencies in Rural Credit Application – Transfer to Financial Institutions (*) 25 Proagro - Resource to the Special Committee of Resources (CER) 26 Proagro - Proof of Losses - Certification of Professionals 27 (to be used) 28 Cost of Measuring Crops or Pastures

RURAL CREDIT MANUAL
Index

ANNEX I
Instructions and Concepts

Purpose

MCR Document 24-1 – "Resources Collected by the Central Bank of Brazil for Deficiencies in Rural Credit Application – Transfer to Financial Institutions" – has the purpose of:

a) communicating interest in receiving the resources collected by the Executive Management of Regulation and Control of Rural Operations and Proagro (Gerop) of the Central Bank of Brazil;

b) commitment regarding the application of transferred resources;

c) communication of the return of transferred resources.

1 – Composition

MCR Document 24-1 is composed of the following annexes:

Annex I – Instructions and Concepts;
Annex II-A – Communication of Interest and Commitment to Apply MCR 6-2 Resources;
Annex II-B – Communication of Interest and Commitment to Apply MCR 6-4 Resources;
Annex III-A – Communication of Return of MCR 6-2 Resources;
Annex III-B – Communication of Return of MCR 6-4 Resources.

2 – Conditions

The financial institution that receives resources transferred by the Central Bank of Brazil under Resolution No. 3,745, of 6/30/2009, in addition to the requirements provided in "Document 24 of the MCR", must observe the special conditions provided in this document.

3 – Of Annex II – Communication of Interest and Commitment to Apply Resources – Models

The communication of interest in receiving the resources subject to collection by the Central Bank of Brazil by the institutions that collected them due to deficiency in rural credit application, regarding mandatory resources (MCR 6-2) and rural savings (MCR 6-4), according to the needs of each financial institution, as well as the commitment to their application, must be formalized in terms of the model contained in Annex II-A or Annex II-B of MCR Document 24-1, as appropriate, signed by two directors, one of whom is responsible for the rural credit area.

4 – Of Annex III – Communication of Return of Resources – Models

The financial institution that receives resources under Resolution No. 3,745, of 2009, must formalize communication to Gerop regarding the return of the resources transferred to it, in terms of the model contained in Annex III-A or Annex III-B of MCR Document 24-1, as appropriate, signed by two directors, one of whom is responsible for the rural credit area.

5 – Submission of Documentation to the Central Bank of Brazil

5.1 – Annex II-A or Annex II-B of MCR Document 24-1 may be sent to Gerop, according to the needs of each financial institution, observing the applicable provisions.

5.2 – Annex III-A or Annex III-B of MCR Document 24-1 must be sent to Gerop by the business day prior to the first business day of August of the year following the year of the collection of deficiencies.

RURAL CREDIT MANUAL
Index

ANNEX II-A
Communication of Interest and Commitment to Apply MCR 6-2 Resources – Model

Financial Institution
CNPJ Name
Letter No. ___________________

To
Central Bank of Brazil
Executive Management of Regulation and Control of Rural Operations and Proagro (Gerop) SBS – Quadra 3 – HQ Bld – 19th floor 70074-900 – Brasília (DF)

Subject: Rural Credit – Obligations for Application of MCR 6-2 Resources – Transfer of Resources by the Central Bank of Brazil – Resolution No. 3,745, of 2009.

In terms of Resolution No. 3,745, of 6/30/2009, and Circular No. 3,460, of 7/23/2009, we communicate our interest in receiving the resources subject to collection by this Central Bank of Brazil by this institution, regarding the deficiency found for the compliance period of 1/1/yyyy to 6/30/yyyy, in the manner of Document 24 of the MCR – Mandatory Resources (MCR 6-2) – Table 5 of "Document 24 of the MCR – Annex II" – according to the option(s) checked below:

5 – Deficiency Found – MCR 6-2-15 Value (R$)
5.1.10.00-5 Deficiency related to the 8% Sub-obligation of Pronaf (MCR 6-2-6) 5.1.20.00-2 Deficiency related to the 28% Sub-obligation (MCR 6-2-5) 5.1.30.00-9 Deficiency related to the General Obligation (MCR 6-2-2) 5.1.00.00-8 TOTAL DEFICIENCY

2. We declare that the resources will be applied in the period of dd/mm/yyyy to 6/30/yyyy, according to the values and directions indicated below, observing the other conditions established in the normative instruments cited in the previous item and in chapter 6 of the MCR:

Mandatory Resources (MCR 6-2) Value (R$)
General Obligation (MCR 6-2-2)
Cooperative Sub-obligation (MCR 6-2-7)
Pronaf Sub-obligation (MCR 6-2-6)
Proger Sub-obligation (MCR 6-2-5)

Sincerely,

Place: Date:
Authorized Signatures, as provided for in art. 1, § 1, of Resolution No. 3,745, of 2009.
Director Name: Director Name:

RURAL CREDIT MANUAL
Index

ANNEX II-B
Communication of Interest and Commitment to Apply MCR 6-4 Resources – Model

Financial Institution
CNPJ Name
Letter No. ___________________

To
Central Bank of Brazil
Executive Management of Regulation and Control of Rural Operations and Proagro (Gerop) SBS – Quadra 3 – HQ Bld – 19th floor 70074-900 – Brasília (DF)

Subject: Rural Credit – Obligations for Application of MCR 6-4 Resources – Transfer of Resources by the Central Bank of Brazil – Resolution No. 3,745, of 2009.

In terms of Resolution No. 3,745, of 6/30/2009, and Circular No. 3,460, of 7/23/2009, we communicate our interest in receiving the resources subject to collection by this Central Bank of Brazil by this institution, regarding the deficiency found for the compliance period of 1/7/yyyy to 6/30/yyyy, in the manner of Document 24 of the MCR – Rural Savings Resources (MCR 6-4) – Table 5 of "Document 24 of the MCR – Annex III", according to the option(s) checked below:

5 - Deficiency Found – MCR 6-4-15 (current MCR 6-4-13) Value (R$) 5.2.10.00-8 Deficiency related to the 60% Sub-obligation (MCR 6-4-7 "a") 5.2.00.00-1 TOTAL DEFICIENCY

2. We declare that the resources will be applied in the period of dd/mm/yyyy to 6/30/yyyy, according to the values and directions indicated below, observing the other conditions established in the normative instruments cited in the previous item and in chapter 6 of the MCR:

Rural Savings Resources (MCR 6-4) Value (R$)
Rural Savings Sub-obligation (MCR 6-4-7-"a")

Sincerely,

Place: Date:
Authorized Signatures, as provided for in art. 1, § 1, of Resolution No. 3,745, of 2009.
Director Name: Director Name:

RURAL CREDIT MANUAL
Index

ANNEX III-A
Communication of Return of MCR 6-2 Resources – Model

Financial Institution
CNPJ Name
Letter No. ___________________

To
Central Bank of Brazil
Executive Management of Regulation and Control of Rural Operations and Proagro (Gerop) SBS – Quadra 3 – HQ Bld – 19th floor 70074-900 – Brasília (DF)

Subject: Rural Credit – Obligations for Application of MCR 6-2 Resources – Return of Resources to the Central Bank of Brazil – Resolution No. 3,745, of 2009.

In terms of Resolution No. 3,745, of 6/30/2009, and Circular No. 3,460, of 7/23/2009, we communicate the return of the mandatory resources (MCR 6-2) transferred by the Central Bank of Brazil to this financial institution, on dd/mm/yyyy, in the manner of MCR Document 24-1 – Annex II-A.

2. Consequently, we request that this Autarchy proceed with the necessary records/entries so that this financial institution can effect the return/return of the due resources via debit in our Bank Reserves account, as checked below:

Mandatory Resources (MCR 6-2) Value (R$)
General Obligation (MCR 6-2-2)
Cooperative Sub-obligation (MCR 6-2-7)
Pronaf Sub-obligation (MCR 6-2-6)
Proger Sub-obligation (MCR 6-2-5)
TOTAL VALUE

Sincerely,

Place: Date:
Authorized Signatures, as provided for in art. 1, § 1, of Resolution No. 3,745, of 2009.
Director Name: Director Name:

RURAL CREDIT MANUAL
Index

ANNEX III-B
Communication of Return of MCR 6-4 Resources – Model

Financial Institution
CNPJ Name
Letter No. ___________________

To
Central Bank of Brazil
Executive Management of Regulation and Control of Rural Operations and Proagro (Gerop) SBS – Quadra 3 – HQ Bld – 19th floor 70074-900 – Brasília (DF)

Subject: Rural Credit – Obligations for Application of MCR 6-4 Resources – Return of Resources to the Central Bank of Brazil – Resolution No. 3,745, of 2009.

In terms of Resolution No. 3,745, of 6/30/2009, and Circular No. 3,460, of 7/23/2009, we communicate the return of the rural savings resources (MCR 6-4) transferred by the Central Bank of Brazil to this financial institution, on dd/mm/yyyy, in the manner of MCR Document 24-1 – Annex II-B.

2. Consequently, we request that this Autarchy proceed with the necessary records/entries so that this financial institution can effect the return/return of the due resources via debit in our Bank Reserves account, as indicated below:

Rural Savings Resources (MCR 6-4) Value (R$)
Rural Savings Sub-obligation (MCR 6-4-7-"a")

Sincerely,

Place: Date:
Authorized Signatures, as provided for in art. 1, § 1, of Resolution No. 3,745, of 2009.
Director Name: Director Name: