CMN Resolution No. 4,901 — Consolidation of Provisions in Chapter 6 of the Rural Credit Manual Regarding Rural Credit Resources

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Resolução Nº 4.901

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

RESOLUTION CMN NO. 4,901, OF MARCH 25, 2021

Provides for the consolidation of the provisions currently inserted in Chapter 6 of the Rural Credit Manual (MCR), regarding rural credit resources.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on March 25, 2021, considering the provisions of Arts. 4, item VI, of said Law, 4, 14 and 21 of Law No. 4,829, of November 5, 1965, and 5 of Decree No. 10,139, of November 28, 2019,

R E S O L V E D:

Art. 1º The following sections of Chapter 6 (Resources) of the Rural Credit Manual (MCR) are consolidated, according to the annexes to this Resolution:

I - Section 1 (General Provisions);

II - Section 2 (Mandatory);

III - Section 3 (Free);

IV - Section 4 (Rural Savings);

V - Section 6 (Interbank Deposits Linked to Rural Credit);

VI - Section 7 (Agricultural Letter of Credit - LCA);

VII - Section 8 (Transitional Norms).

Art. 2º This Resolution enters into force on May 1, 2021.

Roberto de Oliveira Campos Neto

President of the Central Bank of Brazil

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TITLE :
RURAL CREDIT

CHAPTER :
Resources - 6

SECTION :
General Provisions - 1 (*)

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1 - Rural credit may be granted with controlled and uncontrolled resources, according to the classification established in this Section.

2 - Controlled resources are considered to be:

a) mandatory;

b) those from Official Credit Operations;

c) those from any source destined for rural credit in accordance with applicable regulation, when subject to Union subsidy, in the form of financial charge equalization, including resources administered by the National Bank for Economic and Social Development (BNDES);

d) those from rural savings, when applied according to the conditions defined for mandatory resources;

e) those from regional financing constitutional funds;

f) those from the Coffee Economy Defense Fund (Funcafé).

3 - Uncontrolled resources are those not classified under item 2.

4 - Credits formalized under mandatory resources are not subject to financial charge subsidies.

5 - Regarding the identification of resources, the financial institution must:

a) indicate in the credit instrument the source of resources used in financing according to the classification of items 2 and 3 (controlled or uncontrolled resources), registering, if applicable, the name of the fund, program, or specific line;

b) with regard to the indication of the resource source, observe the determinations of this manual relating to:

I

• the accounting and control of rural credit operations;

II

• the registration of operations in the System of Rural Credit and Proagro Operations (Sicor);

III

• the control of balances of applications in rural credit in the Rural Credit Exigibility System (Sisex).

6 - The transfer of debt backed by controlled resources is prohibited, except when:

a) it is essential for the recovery of credit or the preservation of the assisted enterprise;

b) it results from the division of rural property, donation, inventory, judicial separation of spouses, or divorce;

c) the borrower is a company in which the original debtor participates majority.

7 - When the sole purpose is to recover credit or preserve the assisted enterprise, the debt transfer provided for in the previous item is subject to:

a) the borrower being a beneficiary of rural credit, as admitted in this manual;

b) interest rates adjusted to levels current for operations of equal nature and purpose on the date of its implementation.

8 - It is up to the financial institution, in any hypothesis and with specific justification, to decide on the request for debt transfer.

9 - The definition of norms, procedures, and operational conditions for the application of resources from regional financing constitutional funds is subject to specific applicable legislation.

10 - Regardless of the origin of resources, their application is only considered rural credit when the legislation applicable to rural credit and the norms established in this manual are observed.

11 - The Central Bank of Brazil may adopt measures deemed necessary for the execution of the provisions of this Chapter, as well as elaborate and disseminate a system for:

a) control and monitoring of applications backed by Mandatory Resources, Rural Savings, and Agricultural Letters of Credit (LCA), as well as balances of applications in rural credit;

b) verification of respective exigibilities.

12 - The alteration of the resource source of a rural credit operation:

a) is permitted, unless there is an express prohibition in this manual;

b) must be reported immediately in Sicor, to take effect from the date of the alteration;

c) when related to resource sources covered by the sections on Mandatory Resources, Rural Savings, and LCA, subject to compliance with direction, can be performed only once until the settlement of the operation;

d) must be carried out via contractual addendum, in cases of readjustment of financial charges or alteration in the conditions of the operation.

13 - The use of interbank pass-through to comply with rural credit exigibilities is prohibited, except as provided in item 14.

14 - Cooperative banks, confederations of central credit cooperatives, and central credit cooperatives may use interbank pass-throughs linked to rural credit operations carried out by credit cooperatives of the respective system, for the purpose of complying with exigibilities and sub-exigibilities, including their weights, observing the following conditions:

a) the entirety of the resources of each interbank pass-through must be destined to only one rural credit operation;

b) the instrument relating to the interbank pass-through and the instrument relating to the rural credit operation linked to it must observe identical maturity dates and indicate their mutual linkage;

c) the credit cooperative must carry out the rural credit operation within a maximum period of 1 (one) business day after receiving the resources originating from the interbank pass-through; and

d) the credit cooperative must provide all information about the rural credit operation carried out to the cooperative bank, the confederation of central credit cooperatives, or the central credit cooperative that carried out the interbank pass-through.

15 - The computation for compliance with rural credit exigibilities of balances of operations or credit installments is prohibited:

a) written off as a loss in accordance with applicable regulation; and

b) extinguished due to total renegotiation or novation of the original operation or installment.

16 - The weights established for operations backed by Mandatory Resources or Rural Savings, applied to operations according to the date of their contracting, produce effect on the balances of the respective operations until their settlement, except for express provisions to the contrary.

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TITLE :
RURAL CREDIT

CHAPTER :
Resources - 6

SECTION :
Mandatory - 2 (*)

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1 - For the purposes of Art. 21 of Law No. 4,829, of November 5, 1965, mandatory resources are those destined for rural credit operations, originating from the Value Subject to Collection (VSR) related to demand deposits, calculated in accordance with applicable regulation.

2 - The calculation base for the exigibility of mandatory resources corresponds to the arithmetic mean of the VSRs calculated in the calculation period referred to in item 6, minus R$200,000,000.00 (two hundred million reais).

3 - The directional exigibility of Mandatory Resources is the duty of the financial institution to keep applied in rural credit operations the value corresponding to 27.5% (twenty-seven and five-tenths percent) of the value calculated in accordance with item 2, considering, for compliance with this requirement, the daily average balances of operations relative to business days.

4 - The exigibility referred to in item 3 shall be 25% (twenty-five percent) from the compliance period beginning on July 1, 2021.

5 - The financial institution that presents a directional exigibility of Mandatory Resources, calculated in accordance with item 3, equal to or less than R$10,000,000.00 (ten million reais) is exempt from complying with the application exigibility provided for in this Section.

6 - For the purpose of the exigibilities and sub-exigibilities referred to in this Section, it must be observed that:

a) the calculation period:

I

• begins on the first business day of July of the year prior to the start of the compliance period; and

II

• ends on the last business day of June of the year in which the compliance period begins;

b) the compliance period, during which the resources calculated in the period referred to in letter "a" must be applied:

I

• begins on the first business day of July; and

II

• ends on the last business day of June of the subsequent year;

c) deficiency is understood as the failure to apply, totally or partially, the resources under the conditions established in this Section;

d) institutions must edit, validate, and send information regarding compliance with directional resource exigibilities, in accordance with the terms established in the Document Demonstrating Exigibilities and Rural Credit Applications;

e) the verification of compliance, under the responsibility of the Central Bank of Brazil, must be carried out from July 20 of each year, without prejudice to actions emanating from the supervision area, with the financial institution observing the provisions of the section dealing with the Calculation and Charging of Financial Cost for Deficiency in Compliance with Exigibilities, where applicable.

7 - Subject to compliance with the application exigibility in rural credit:

a) commercial banks, multiple banks with commercial portfolios, and Caixa Econômica Federal;

b) financial institutions that capture resources in the form of Interbank Deposit Linked to Rural Credit (DIR).

8 - As part of the Pronamp Sub-exigibility, at least 28% (twenty-eight percent) of the total resources of the exigibility must be kept applied in operating operations:

a) supported by the National Program for Support to Medium Rural Producers (Pronamp);

b) contracted with small and medium rural producers, according to the classification established in this manual, respecting the maximum limit of 10% (ten percent) of the percentage referred to in the caput.

9 - It is admitted that up to 15% (fifteen percent) of the Pronamp Sub-exigibility may be fulfilled with investment operations supported by Pronamp.

10 - As part of the Pronaf Sub-exigibility, at least 22% (twenty-two percent) of the total resources of the exigibility must be kept applied in operating operations supported by the National Program for Strengthening Family Agriculture (Pronaf).

11 - Daily average balances may also be computed for compliance with the exigibility and sub-exigibilities, as the case may be:

a) of DIRs, listed below, by the depositing financial institution:

I

• DIR-General;

II

• DIR-Pronamp;

III

• DIR-Pronaf;

b) of rural financings contracted with the right to subsidy via financial charge equalization by the National Treasury (TN), based on Law No. 8,427, of May 27, 1992, and subsequent amendments, by excluding them from the calculation base of equalization, observing that if the financings have Rural Savings as the original resource source, they can no longer be computed for compliance with the respective exigibility;

c) of operations renegotiated in accordance with applicable regulation, when backed by resources covered by this Section;

d) of titles issued by the TN for the payment of debts of the Program for Guarantee of Agropecuary Activity (Proagro), whose operations with adherence to the program were backed by Mandatory Resources, with values of titles redeemed by the TN, freely negotiated in the market, and used in the National Privatization Program (PND) excluded from the monthly average calculation;

e) of the specific account "Proagro to Receive", observing that:

I

• operations contracted with the right to financial charge subsidy by the TN must be excluded from the calculation base of equalization;

II

• balances of operations originally backed by resources from Rural Savings can no longer be computed for compliance with the respective exigibility;

f) of operations renegotiated under the conditions established in Art. 1, item IX, of Resolution No. 2,238, of January 31, 1996, and 5, §§ 1 and 2, of Resolution No. 2,471, of February 26, 1998, originally contracted or that came to be backed by resources covered by this Section, whose value cannot exceed 60% (sixty percent) of the exigibility;

g) of titles issued by the TN for the payment of renegotiation of rural debts - values ceded to the TN, in accordance with Arts. 8, item III, letter "c", and 14 of Resolution No. 2,238, of 1996, relative to financings originally granted under the resources covered by this Section;

12 - For the purpose of compliance with the Pronaf Sub-exigibility, the value corresponding to the daily average balance of operating operations supported by Pronaf, contracted from July 1, 2020, must be computed by multiplying them by the following weighting factors:

a)
1.24 (one and twenty-four hundredths) for the following operations, provided they are contracted through the application of a fixed effective interest rate of up to 2.75% a.a. (two and seventy-five hundredths percent per annum): destined for the cultivation of rice, beans, cassava, cowpea, wheat, peanut, garlic, tomato, onion, yam, taro, sweet potato, Irish potato, pineapple, banana, açaí, pupunha, cocoa, baru, cashew nut, orange, tangerine, vegetables, yerba mate, medicinal, aromatic, and condiment herbs; of other products inserted in agroecological-based production systems or in transition to agroecological-based systems; of corn, whose operations summed reach a value of up to R$20,000.00 (twenty thousand reais) per borrower in each agricultural year; to livestock operating of apiculture, dairy cattle farming, pisciculture, sheep farming, and goat farming, and ecologically sustainable extractive exploration; and

b) 1.11 (one and eleven hundredths) for the following operations, provided they are contracted through the application of a fixed effective interest rate of up to 4.0% a.a. (four percent per annum): for the acquisition of animals destined for rearing and fattening, for operations destined for the cultivation of corn that, summed, exceed the value of R$20,000.00 (twenty thousand reais), per borrower in each agricultural year, and other cultures and creations not mentioned in letter "a".

13 - The weights provided for in item 12 do not apply to the balances of operations, even if directed to Pronaf beneficiaries directly or indirectly, referring to credits destined for:

a) tobacco culture;

b) marketing.

14 - The use of Mandatory Resources for the contracting of investment operations and Financing for Price Guarantee to the Producer (FGPP) is prohibited, except as provided in specific norm of this manual.

15 - Balances of operations or credit installments whose financial charges have been increased due to borrower default cannot be computed for compliance with the exigibility and sub-exigibilities, from the day following the increase of the contractual charge.

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TITLE :
RURAL CREDIT

CHAPTER :
Resources - 6

SECTION :
Free - 3 (*)

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1 - This Section covers rural credit operations carried out with the use of free resources of financial institutions, contracted at freely agreed rates, not backed by economic subsidy from the Union in the form of interest rate equalization and other financial charges.

2 - Own resources or captured by the financial institution, including abroad under Resolution No. 3,844, of March 23, 2010, not classified among the controlled resources of rural credit, may be applied in rural credit operations, under the conditions provided for in this Section.

3 - Credits granted with free resources may cover operating, investment, marketing, or industrialization operations, involving any products of vegetable or animal origin, including those obtained in extractive activities.

4 - Credits granted with free resources may also be destined for the financing of:

a) construction and renovation of properties intended for housing and lodging of the producer and workers employed on rural properties;

b) productive activities different on the rural property, classified as operating, investment, industrialization, or marketing according to the predominance of their destination.

5 - For the realization of a rural credit operation object of this Section, the financial institution must observe the following conditions and procedures:

a) have authorization to operate in rural credit;

b) observe legislation and regulation regarding compliance with socio-environmental requirements and registration regularity incident on the beneficiary or the location of the enterprise, including regarding the presentation of the registration inscription in the Rural Environmental Registry (CAR);

c) adhere to the principles of economy and the productive character of the application of resources;

d) require the presentation of a budget for application in specific activities;

e) proceed to accounting and control of operations;

f) proceed to the opening of an account linked to each credit granted, except in the case of discount;

g) issue the financial instruments provided for by regulation for the formalization of rural credit operations, admitting the inclusion, in the same instrument or separately, of credits for diverse purposes;

h) include, in the respective contractual instrument, clauses establishing the following obligations for the beneficiary:

I

• apply resources only in items compatible with the purposes of the operation, among those listed in items 3 and 4;

II

• conserve, at the disposal of the financial institution, proof of purchases and expenses related to the financed enterprise, at least until 1 (one) year after the settlement of the debt;

i) register the geodetic coordinates (GC) of the enterprise.

6 - In the realization of rural credit operations with free resources, the conditions and procedures to be observed by the financial institution and the contractual conditions agreed upon with beneficiaries are subject to the norms of the Rural Credit Manual (MCR) only regarding the provisions of this Section.

b) when members of cooperative systems organized in two (2) levels that present Combined Adjusted Net Equity greater than R$600,000,000.00 (six hundred million reais);

c) not affiliated with central credit cooperatives, provided that:

I

• present Adjusted Net Equity greater than R$300,000,000.00 (three hundred million reais); and

II - are classified in the full category, in accordance with applicable regulation.

6 - The request for authorization for credit cooperatives to collect rural savings deposits must be submitted to the Central Bank of Brazil, in the manner regulated by it:

a) by the confederation constituted by central credit cooperatives or by the central credit cooperative, in the cases covered by letters “a” and “b” of item 5, respectively;

b) by the own singular credit cooperative, in the case covered by letter “c” of item 5.

7 - The approval of the authorization request to collect rural savings deposits is subject to the following conditions:

a) compliance with current regulation, including operational limits, conditions established in item 5 and other obligations towards the Central Bank of Brazil;

b) absence of irregularity and restriction in public or private registration and information systems containing data pertinent to the requested authorization, on the part of the requesting cooperative;

c) adherence to the systemic performance guidelines established by the respective confederation or, in its absence, by the central credit cooperative, for cooperatives that are part of cooperative systems; and

d) demonstration of the market reasons that justify the cooperative's interest in collecting rural savings deposits.

8 - The Central Bank of Brazil may, in the analysis of the processes covered by item 7, considering the circumstances of each concrete case and the context of the facts, exceptionally and in the face of public interest, waive compliance with the conditions specified in item 7.

9 - Regarding the redirection covered by item 2 and the compulsory collection established by the Central Bank of Brazil, the following conditions must be observed for the cases provided for in letters “a” and “b” of item 5:

a) the resources collected by singular credit cooperatives must be transferred in the same amounts collected, observing the maximum deadline of up to one business day:

I

• to the credit confederation or to the cooperative bank, in the cases provided for in letter “a” of item 5;

II

• to the central credit cooperative,
  in the cases provided for in letter “b” of item 5;

b) it is the responsibility of the credit confederation, the cooperative bank or the central credit cooperative to prove the redirection to rural credit and the compulsory collection at the Central Bank of Brazil;

c) the credit confederation, the cooperative bank or the central credit cooperative that incurs a deficiency in application in complying with the redirection to rural credit is subject to the financial cost, in accordance with the section that provides for the Calculation and Collection of Financial Cost for Deficiency in Compliance with Obligations.

10 - As a sub-obligation, at least 95% (ninety-five percent) of the resources of the rural savings obligation must be applied in rural credit operations.

11 - As a faculty, up to 5% (five percent) of the resources of the rural savings obligation may be applied in the acquisition of Rural Product Certificates (CPR) issued by rural producers or their production cooperatives.

12

• Also, the following daily average balances may be counted for compliance with the obligation and sub-obligation of rural savings:

a) of the Interfinancial Deposit Linked to Rural Credit named DIR-Poup, by the depositing financial institution;

b) of renegotiated operations under the conditions established in Art. 1, item IX, of Resolution No. 2,238, of January 31, 1996, and Art. 5 of Resolution No. 2,471, of February 26, 1998, originally contracted and/or that began to be backed by resources from this Section;

c) of securities issued by the National Treasury (TN) for the payment of rural debt renegotiation - values ceded to the TN, in accordance with Arts. 8, item III, letter “c”, and 14 of Resolution No. 2,238, of 1996, originally granted under the auspices of the resources covered by this Section.

13 - The operations carried out based on the resources covered by this Section are subject, when dealing with uncontrolled resources, to the regulation applicable to operations with free resources, set forth in this Chapter.

14

• Observed the redirection provided for in item 2 and the percentage of compulsory collection established by the Central Bank of Brazil, the remaining resources collected in rural savings deposits by financial institutions may be applied in financial availability and in other operations admitted under the legislation and current regulation.

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TITLE :
RURAL CREDIT

CHAPTER :
Resources - 6

SECTION :
Interfinancial Deposits Linked to Rural Credit - 6 (*)

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1 - The use of Interfinancial Deposit Linked to Rural Credit (DIR) is admitted to comply with the obligations/sub-obligations or redirections of Mandatory Resources, Rural Savings and Agricultural Credit Letter (LCA).

2

• DIRs are classified, according to the purpose to which they are destined, into:

a)
DIR-General, for compliance with the General Obligation of Mandatory Resources;

b)
DIR-Pronamp, for compliance with Pronamp Sub-obligation within the scope of Mandatory Resources;

c)
DIR-Pronaf, for compliance with Pronaf Sub-obligation within the scope of Mandatory Resources;

d)
DIR-Poup, for compliance with the sub-obligation of application in rural credit within the scope of Rural Savings Resources;

e)
DIR-LCA-CR, for compliance with the sub-redirection of application in rural credit within the scope of LCA Resources;

f) DIR-LCA-Livre, for compliance with the application faculty provided for in MCR 6-7-7-“b”.

3

• The following may act as depositing financial institutions of DIR:

a) financial institutions subject to the obligations or redirections of Mandatory Resources, Rural Savings and LCA;

b) multiple banks without commercial portfolio, investment banks, development banks and the National Bank for Economic and Social Development (BNDES), observing the conditions of item 8;

c) confederations of central credit cooperative centers and central credit cooperatives, observing the conditions of item 11.

4

• The following may act as depositary financial institutions of DIR:

a) financial institutions subject to the obligations or redirections of Mandatory Resources, Rural Savings and LCA;

b) multiple banks without commercial portfolio, investment banks, development banks and BNDES, observing the conditions of item 8;

c) singular credit cooperatives, observing the conditions of item 9;

d) confederations of central credit cooperative centers and central credit cooperatives, observing the conditions of item 11.

5 - In the contracting of any of the DIR modalities, a minimum term of 120 (one hundred and twenty) days must be observed.

6

• The
  depositing financial institutions of DIR and those subject to the specific rules of item 11 are subject to:

a) monthly provision of information regarding applications in DIR through the Statement of Obligations and Rural Credit Applications;

b) prohibition of DIR negotiation in the secondary market.

7

• The
  depositary financial institutions of DIR and those subject to the specific rules of items 8, 9 and 11 are subject to:

a) monthly provision of information regarding collections in DIR through the Statement of Obligations and Rural Credit Applications;

b) addition of the collected value to the corresponding obligation/sub-obligation and redirection, according to the contracted DIR modality;

c) other rules of compliance with the respective obligation/sub-obligation and redirection, including regarding proof of the established obligation, which is their responsibility.

8

• Multiple banks without commercial portfolio, investment banks, development banks and BNDES may collect resources through DIR in the modalities provided for in this Section, for application in rural credit, provided that:

a) possess authorization to operate in rural credit;

b) communicate previously to the Central Bank of Brazil the start of collection of the aforementioned resources;

9 - Singular credit cooperatives may collect resources through DIR in the modalities provided for in this Section, for application in rural credit, provided that:

a) possess authorization to operate in rural credit;

b) communicate previously to the Central Bank of Brazil the start of collection of the aforementioned resources;

c) operate exclusively in the condition of depositary financial institution.

10 - The institutions referred to in items 8 and 9 are subject, insofar as applicable, to the rules of this manual, particularly those provided for in this Section and in the sections of this Chapter that provide for the redirections of Mandatory Resources, Rural Savings and LCA, including regarding the collection of financial cost.

11

• Confederations of central credit cooperative centers and central credit cooperatives may collect resources through DIR in the modalities provided for in this Section, exclusively for subsequent transfer to credit cooperatives affiliated with them, provided that:

a) communicate previously to the Central Bank of Brazil the start of collection of the aforementioned resources;

b) the subsequent transfer, when carried out through DIR, must be carried out in the same modality of the collected DIR and in the same amounts received, observing the maximum deadline of 1 (one) business day and that the responsibility for proving the redirection of the collected resources lies with the depositing credit cooperative; and

c) the subsequent transfer, when carried out through interfinancial transfer, must be carried out in observance of the provisions of MCR 6-1-14.

12

• All DIR modalities are subject to the rules applicable to interfinancial deposits that do not conflict with those provided for in this Chapter.

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TITLE :
RURAL CREDIT

CHAPTER :
Resources - 6

SECTION :
Agricultural Credit Letter (LCA) - 7 (*)

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1 - Financial institutions that collect resources through the issuance of Agricultural Credit Letter (LCA), regardless of the backing used for the issuance of the letter, must observe the provisions of this Section.

2

• Obligation to redirect resources collected through the issuance of LCA is the duty of the financial institution to keep applied in rural credit operations the value corresponding to 35% (thirty-five percent) of the value calculated in the manner of item 3.

3

• Until May 31, 2021, the calculation base for the redirection of resources collected in the manner of item 1 corresponds:

a) for financial institutions with average monthly Reference Equity level 1 (RE1) greater than R$5,000,000,000.00 (five billion reais), to the arithmetic mean of the daily balances of LCAs, calculated in the calculation period covered by item 9-“a”;

b) for financial institutions with average monthly RE1 equal to or less than R$5,000,000,000.00 (five billion reais), to the arithmetic mean of the daily balances of LCAs, calculated in the calculation period covered by item 9-“a”, deducted by R$500,000,000.00 (five hundred million reais).

4

• From June 1, 2021, the calculation base for the redirection of resources collected in the manner of item 1 corresponds:

a) for financial institutions with average monthly RE1 greater than R$1,500,000,000.00 (one billion and five hundred million reais), to the arithmetic mean of the daily balances of LCAs, calculated in the calculation period covered by item 9-“a”;

b) for financial institutions with average monthly RE1 equal to or less than R$1,500,000,000.00 (one billion and five hundred million reais), to the arithmetic mean of the daily balances of LCAs, calculated in the calculation period covered by item 9-“a”, deducted by R$100,000,000.00 (one hundred million reais).

5 - The period for calculating the average monthly RE1, covered by items 3 and 4, will be identical to the calculation period covered by item 9-“a”.

6 - The financial institution that calculates an obligation to redirect equal to or less than R$500,000.00 (five hundred thousand reais) is exempt from complying with the application redirection provided for in this Section.

7

• The resources calculated in the manner of item 2 must be applied at freely agreed rates, observing that:

a) as a sub-redirection, at least 50% (fifty percent) must be applied in rural credit operations, observing the conditions established for operations with free resources, and, in the case of Price Guarantee Financing for the Producer (FGPP), the conditions established in the regulation applicable to this line of financing must be observed;

b) as a faculty, up to 50% (fifty percent) may be applied in:

I

• acquisition of Rural Product Certificate (CPR) issued by a rural producer or agricultural production cooperative;

II

• acquisition of Agricultural Credit Rights Certificate (CDCA) and Agricultural Receivables Certificate (CRA), provided that the credit rights linked are entirely originated from transactions in which the rural producer is a direct party;

III

• acquisition of Agricultural Deposit Certificate (CDA) and Agricultural Warrant (WA),
  provided that they have been issued in favor of a rural producer;

IV - quotas of credit guarantee funds for operations with rural producers, at the value of the subscription, provided that the guaranteed credit operations are rural credit.

8

• The securities mentioned in items 7-“b”-I, 7-“b”-II and 7-“b”-III must, additionally, meet the following requirements:

a) be registered or deposited in entities authorized to perform the activities of registration or centralized deposit of financial assets and securities; and

b) be custodied in the acquiring financial institution.

9

• For the purpose of the redirection established in this Section, it must be observed that:

a) the calculation period begins on the first business day of the month of June and ends on the last business day of the month of May of the following year, when the daily average balances related to business days of LCAs must be calculated;

b) the compliance period is that in which the resources calculated in the manner of letter “a” must be applied, beginning on the first business day of the month of July and ending on the last business day of the month of June of the following year;

c) compliance with the redirection is effected based on the daily average balances of the credit operations referred to in this Section, related to business days;

d) deficiency is understood as the total or partial non-application of resources under the conditions established in this Section;

e) monthly, financial institutions must provide information on the resources covered by this Section to the Central Bank of Brazil, in the manner established in the Statement of Obligations and Rural Credit Applications, until the 20th (twentieth) day of the month following the month of the reported position, observing the provisions of letter “f”;

f) institutions must edit, validate and send information regarding compliance with resource redirection obligations, in accordance with the provisions of the Statement of Obligations and Rural Credit Applications;

g) verification of compliance, under the responsibility of the Central Bank of Brazil, must be carried out from July 20 of each year, without prejudice to actions emanating from the inspection area;

h) an excess of application in the obligation of mandatory resources calculated at the end of the same compliance period may be counted, for the purposes of compliance with the redirection covered by item 2.

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TITLE :
RURAL CREDIT

CHAPTER :
Resources - 6

SECTION :
Transitional Norms - 8 (*)

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1 - The balances of interfinancial transfers contracted until June 30, 2017 may be counted for compliance with the obligations and sub-obligations covered by this Chapter, until their settlement.

2

• Within the scope of Mandatory Resources, the balances of the following operations
  will continue to be counted for the purpose of compliance with the obligation and sub-obligations provided for in this Section, until their settlement:

a) contracted until June 30, 2015: investment operations under the auspices of the National Program for Strengthening Family Agriculture (Pronaf) and the National Program for Support to the Medium Rural Producer (Pronamp);

b) contracted until June 30
2017: investment operations and Price Guarantee Financing for the Producer (FGPP).

3

• Within the scope of Mandatory Resources, for the purpose of compliance with the
  obligation and sub-obligations, the value corresponding to the daily average balance of operations under the auspices of Pronaf contracted until June 30, 2018, including expressly admitted renegotiations, must be counted by multiplying them by the following weighting factors, according to the effective interest rate contracted:

a)
1.38 (one and thirty-eight hundredths) for operations whose interest rate at the time of contracting was up to 2.5% a.a. (two and five tenths percent per year);

b) 1.15 (one and fifteen hundredths) for operations whose interest rate at the time of contracting was greater than 2.5% a.a. (two and five tenths percent per year).

4 - Financial institutions holding balances of rural credit operations for working capital and marketing subject to the incidence of the weighting factor of 2.2 (two and two tenths) established by Resolution No. 4,259, of August 8, 2013, may waive the use of said factor, for the purpose of compliance with the obligation and sub-obligation of application of Rural Savings Resources, from October 1, 2014, provided that the said act of waiver has been communicated to the Central Bank of Brazil until November 14, 2014, through a document signed by the director in charge of the rural credit area.

5

• Within the scope of Mandatory Resources, the balances of operations contracted based on the following normative instruments may be used to comply with Pronaf Sub-obligation, until the settlement of the operations:

a)
Art. 4 of Resolution No. 4,801, of April 9, 2020;

b)
Art. 3 of Resolution No. 4,802, of April 9, 2020;

c)
Art. 4 of CMN Resolution No. 4,802, of 2020, provided that the respective operations:

I

• are destined for singular cooperatives constituted by Pronaf beneficiaries, with Active Pronaf Declaration (DAP) on the date of contracting;

II

• have an effective interest rate of up to 6% a.a. (six percent per year);

d)
Art. 2 of Resolution No. 4,807, of April 30, 2020;

e) Art.3 of
Resolution No. 4,833, of June 25, 2020.

6

• The balances of marketing, processing or industrialization operations of products of agro-industrial origin or inputs used in that activity contracted until April 30, 2021 with resources from Rural Savings and Agricultural Credit Letters by natural or legal persons who are not classifiable as beneficiaries of rural credit may be used to comply with the respective obligations until the settlement of the operations.