CMN Resolution No. 3495 on Payment Grace Period for 2007 Investment Installments and Extension of 2007 Working Capital Installments

RESOLUTION NO. 003495

Dispenses with the granting of a period for payment of investment installments due in 2007 and with the extension of an installment due in 2007 of extended working capital credits referring to the 2003/2004, 2004/2005, and 2005/2006 harvests.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on August 29, 2007, based on Article 1 of Law No. 8,427, of May 27, 1992, and considering the provisions of Article 4, item VI, of the aforementioned Law No. 4,595, of 1964, Articles 4 and 14 of Law No. 4,829, of November 5, 1965, and Article 5 of Law No. 10,186, of February 11, 2001,

RESOLVES:

Article 1. Financial institutions are authorized to establish a new payment period, due on October 15, 2007, for the agricultural investment credits referenced below, which were in a current status as of December 31, 2006, for installments due and unpaid or future installments in the period from January 2, 2007, to October 15, 2007, calculated and maintained under normal conditions for all purposes, with the case-by-case examination of operations and the formalization of an amendment to the credit instrument dispensed at the discretion of the financial agent:

I - agricultural investment programs backed by transfers from the National Bank for Economic and Social Development (BNDES) and Finame Agrícola Especial;

II - provided for in MCR 6-2 (mandatory resources) and MCR 6-4 (rural savings), not equalizable by the National Treasury;

III - from the National Program for Strengthening Family Agriculture (Pronaf);

IV - from the Program for Generation of Employment and Rural Income (Proger Rural), including those transferred by the National Treasury;

V - under the protection of FAT Integrar Rural.

Article 2. Establish, for installments due in 2007 of extended working capital operations from the 2003/2004, 2004/2005, and 2005/2006 harvests, including operations extended under the scope of Pronaf, that:

I - for installments due and unpaid or future installments until September 28, 2007: they will be calculated and maintained under normal conditions, for all purposes, until September 28, 2007, and, in accordance with MCR 2-6-9, the granting of a payment period for up to 100% (one hundred percent) of the due value (principal, financial charges, and accessories) will be permitted for up to one year after the due date of the last installment in the current return schedule of these operations, maintaining the financial charges contracted for normal status;

II - for future installments from September 29, 2007: it will be permitted, provided it is requested by the borrower by the respective due date, the granting of a period, in accordance with MCR 2-6-9, for payment of up to 100% (one hundred percent) of the due value (principal, financial charges, and accessories) for up to one year after the due date of the last installment in the current return schedule of these operations, maintaining the financial charges contracted for normal status;

III - upon extension in accordance with items I and II, operations contracted with resources equalized by the National Treasury, except those contracted within the scope of Pronaf, must be reclassified to the source of mandatory resources (MCR 6-2).

Article 3. The conditions established in this resolution may be applied to rural credit financing contracted under the protection of resources from the Constitutional Financing Funds of the North (FNO), Northeast (FNE), and Center-West (FCO), adopting the procedures deemed necessary regarding this source of resources.

Article 4. In the formalization of the renegotiations covered by this resolution, the provisions of Resolution No. 2,682, of December 21, 1999, regarding the classification of operations, must be observed.

Article 5. This resolution enters into force on the date of its publication.

Article 6. Resolutions No. 3,460, of June 14, 2007, and No. 3,479, of July 31, 2007, are hereby revoked.

Brasília, August 30, 2007.

Alexandre Antonio Tombini
President, Substitute