CMN Resolution No. 3597 — Amends Provisions of Resolutions Nos. 3,575, 3,576, 3,577, and 3,578, All of May 29, 2008

RESOLUTION NO. 003597

Amends provisions of Resolutions
Nos. 3,575, 3,576, 3,577 and 3,578, all of May 29, 2008.

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 NATIONAL, in a session held on August 28, 2008, considering the provisions of Articles 4, item VI, of the aforementioned Law, 4 and 14 of Law No. 4,829, of November 5, 1965, 5 of Law No. 10,186, of February 11, 2001,

RESOLVES:

Art. 1. Article 2 of Resolution No. 3,575, of May 29, 2008, shall be effective with the following wording:

"Article 2...................................................

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§ 1. In the States of Rio Grande do Sul and Mato Grosso and in Municipalities of the States of Santa Catarina, Paraná and Mato Gross do Sul that have declared a state of emergency or calamity public in 2004 and 2005, as a result of drought, case-by-case analysis of the proof of the borrower's inability to pay is waived, the renegotiations may reach a limit of up to 60% (sixty percent) of the balance of investment operations referred to in this
article, in each financial institution in these States,
observed that this percentage does not integrate the limit of 10% (ten percent) referred to in the main text, and that the additional term for payment set forth in item II may be extended to up to five years.

§ 2. In Municipalities where a state of emergency or public calamity was declared after July 1, 2007, recognized by the Federal Government, whose motivating events have negatively affected agricultural or livestock production of the 2007/2008 harvest, the limitations of renegotiation percentage established in this article are not applied, nor the requirement of minimum payment in 2008 provided for in item I of this article.

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§ 4. The borrower who renegotiates their investment debt under the conditions established in this article will be prevented, until they fully settle their investment operation renegotiated, from contracting new investment financing with resources equalized by the National Treasury or with resources controlled by rural credit or by the Funds Constitutional Financing Funds, in the entire National Rural Credit System - SNCR, except when intended for works of irrigation, drainage, protection and recovery of soil or degraded areas, fruit farming, afforestation and reforestation, with the presentation of a declaration that they do not maintain prorogated debt under those conditions with the SNCR.

§ 5. In defining the balance of investment operations by financial institution referred to in the main text for calculation of the 10% eligible for renegotiation, balances of operations carried out in the states of RS and MT should not be considered, which follow the provisions of § 1." (NR)

Art. 2. Article 4 of Resolution No. 3,576, of May 29, 2008, shall be effective with the following wording:

"Article 4.................................................
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§ 1. In Municipalities where a state of emergency or public calamity was declared after July 1, 2007, recognized by the Federal Government, whose events motivators have negatively affected production agricultural or livestock of the 2007/2008 harvest, the first installment of which refers to item II of this article may be demanded in 2009.

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§ 4. The extension of the term for the operations referred to in the main text, except for operations contracted under the auspices of the Program FAT Giro Rural, may be up to four years when referring to financing for enterprises located in the States of Rio Grande do Sul, Mato Grosso and Goiás, or in Municipalities of the States of Mato Grosso do Sul, Paraná and Santa Catarina that have declared a state of public calamity or emergency, due to drought occurring in 2004 and 2005, duly recognized by the Federal Government." (NR)

Art. 3. Article 5 of Resolution No. 3,577, of May 29, 2008, shall be effective with the following wording:

"Article 5. Financial institutions may adopt the following measures in Municipalities where a state of emergency or public calamity was declared after July 1, 2007, recognized by the Federal Government, whose events motivators have negatively affected production agricultural or livestock of the 2007/2008 harvest in the respective Municipalities:
....................................................." (NR)

Art. 4. Article 4 of Resolution No. 3,578, of May 29, 2008, shall be effective with the following wording:

"Article 4...................................................
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§ 1. In areas covered by the Superintendency of Development of the Amazon (SUDAM) and Superintendency of Development of the Northeast (SUDENE), renegotiations may reach a limit of up to 30% (thirty percent) of the number of investment operations performed with resources from the sources referred to in the main text in each financial institution in these regions, with the additional term for payment referred to in item III may be extended to up to five years.

§ 2. In Municipalities where a state of emergency or public calamity was declared after July 1, 2007, recognized by the Federal Government, whose events motivators have negatively affected agricultural or livestock production of the 2007/2008 harvest, the limitations of renegotiation percentage established in this article are not applied, nor the requirement of minimum payment in 2008 provided for in item II of this article.

§ 3. The borrower who renegotiates their investment debt under the conditions established in this article will be prevented, until they fully settle their investment operation renegotiated, from contracting new investment financing, except for investments intended for works of irrigation, drainage, protection and recovery of soil or degraded areas, fruit farming, afforestation and reforestation, with resources controlled by rural credit or by the Constitutional Financing Funds, in the entire National Rural Credit System - SNCR, with the presentation of a declaration that they do not maintain debt prorogated under those conditions with the SNCR.

§ 4. In the States of Rio Grande do Sul, Mato Grosso and Goiás and in Municipalities of the States of Santa Catarina, Paraná and Mato Grosso do Sul that have declared a state of emergency or public calamity in 2004 and 2005, as a result of drought, the requirement of case-by-case proof of the borrower's inability to pay is waived, renegotiations may reach a limit of 60% (sixty percent) of the number of operations of investment referred to in this article, in each financial institution in these States, observed that this percentage does not integrate the limit of 10% (ten percent) of which refers to the main text, and that the additional term for payment of which refers to the final part of item III of this article may be extended to up to five years.

§ 5. In defining the number of investment operations by financial institution, referred to in the main text, for calculation of the 10% eligible for renegotiation, numbers of operations carried out in the states of Rio Grande do Sul, Mato Grosso and Goiás should not be considered, which follow the provisions of § 4." (NR)

Art. 5. For the purpose of payment of interest rate equalization, financial agents must submit to the Treasury Secretariat National specific spreadsheets related to investment operations object of renegotiation based on Articles 2, of Resolution No. 3,575, and 4, of Resolution No. 3,578, both of 2008.

Art. 6. This Resolution enters into force on the date of its publication.

São Paulo, August 29, 2008.

Henrique de Campos Meirelles
President