Circular No. 3924 — Regulates the Use of Payment Arrangement Receivables as Collateral for Credit Operations

The Collegiate Board of the Central Bank of Brazil, in a session held on December 19, 2018, based on Art. 9, items I, II, and X, of Law No. 12,865, of October 9, 2013, and considering the provisions of Resolution No. 4,707, of December 19, 2018,

R E S O L V E S:

Art. 1 This Circular regulates the use of payment arrangement receivables as collateral for credit operations contracted by financial institutions.

§ 1 For the purposes of this Circular, payment arrangement receivables are considered to be credit rights relating to payment obligations of accredited institutions or sub-accredited entities to end-user payees, established within the scope of a post-paid payment arrangement, including credit rights of future existence with an unknown amount.

§ 2 For the purposes of § 1, accredited institutions are considered to be:

I - payment institutions acting as accredited entities;

II - financial institutions providing accreditation services; and

III - payment institutions issuing electronic money that interoperate with the payment arrangement of the payer user.

Art. 2 Accredited institutions must:

I - perform the financial settlement of payment arrangement receivables at the home institution specified in the contract of the credit operation secured in whole or in part by these receivables, during its validity; and

II - make available the schedule of receivables from their end-user payees to financial institutions with which these users have entered into credit operations secured by payment arrangement receivables.

Sole Paragraph. Accredited institutions, when entering into partnership contracts with sub-accredited entities, must:

I - include clauses in the contracts obliging the sub-accredited entities linked to them to comply with the provisions of this Article; and

II - ensure that the controls adopted by the sub-accredited entities allow for compliance with the provisions of this Article.

Art. 3 This Circular enters into force on January 31, 2019.

Otávio Ribeiro Damaso Reinaldo Le Grazie
Director of Regulation Director of Monetary Policy