CMN Resolution No. 4292 — Credit Portability for Natural Persons

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on December 20, 2013, based on Articles 4, items VIII and IX, of the aforementioned Law, Article 7 of Decree-Law No. 2,291 of November 21, 1986, Article 33-E of Law No. 9,514 of November 20, 1997, and Article 28 of Law No. 10,150 of December 21, 2000,

R E S O L V E D:

Art. 1 Financial institutions must guarantee the portability of their credit operations carried out with natural persons, upon receipt of funds transferred by another financial institution, observing the procedures established in this Resolution.

Sole Paragraph. For the purposes of this Resolution, the following are considered:

I - portability: transfer of a credit operation from the original creditor institution to the proposing institution, at the debtor's request;

II - original creditor institution: the financial institution that is the creditor in the credit operation subject to portability;

III - proposing institution: the financial institution receiving the credit operation subject to portability; and

IV - debtor: the natural person(s) holding the credit operation subject to portability.

Art. 2 The transfer of a credit operation between financial institutions, at the debtor's request, must be carried out in the manner provided for in this Resolution, and the use of alternative procedures aimed at obtaining a result similar to portability is prohibited.

Art. 3 The value and term of the operation at the proposing institution cannot be higher than the outstanding balance and the remaining term of the credit operation subject to portability at the date of the fund transfer referred to in Article 7.

Sole Paragraph. In the event that the installment value of the credit operation subject to portability at the proposing institution is higher than the installment value at the original creditor institution, the proposing institution must obtain the debtor's formal and specific consent to the increase in the installment value.

Art. 4 The exchange of information between the original creditor and proposing institutions must be carried out electronically, through an asset registration system authorized by the Central Bank of Brazil.

Sole Paragraph. The system mentioned in the main text must assign a specific identification code for portability, to be used in the exchange of information between the institutions.

Art. 5 At the formal and specific request of the debtor, the proposing institution must send a portability request to the original creditor institution, containing, at a minimum, the following information:

I - the debtor's Individual Taxpayer Registry (CPF) number;

II - the credit operation contract number assigned by the original creditor institution;

III - the credit proposal from the proposing institution to the debtor, containing the annual nominal and effective interest rate, the Effective Total Cost (CET), the term of the operation, the payment system, and the installment values;

IV - three reference dates for calculating the outstanding balance of the credit operation subject to portability, when it is a real estate credit operation;

V - the price index or remuneration base to be used in the proposed credit operation, if applicable;

VI - the debtor's phone number, including the Direct Distance Dialing (DDD) code; and

VII - the full address, with the Postal Addressing Code (CEP), of the proposing institution, for the receipt of documentation related to portability.

§ 1 The installment value mentioned in item III of the main text, when subject to a price index or a remuneration base that varies over the contract, must be calculated based on the values of these parameters in effect on the date the information is sent.

§ 2 The proposing institution must make the information contained in the portability request referred to in the main text available to the debtor, physically or electronically.

Art. 6 The original creditor institution must request the proposing institution, within five business days from the date of receipt of the request referred to in Article 5, the transfer of the funds necessary to effectuate the portability.

§ 1 The request referred to in the main text must include, at a minimum, the following information:

I - the outstanding balance of the credit operation subject to portability:

a) on the reference dates mentioned in Article 5, item IV, when it is a real estate credit operation; or

b) on the date the information is sent, for other credit operations;

II - the remaining term and the due date of the last installment of the credit operation subject to portability; and

III - the data necessary to effectuate the fund transfer referred to in Article 7.

§ 2 If the debtor decides not to effectuate the portability, the original creditor institution must inform this decision to the proposing institution within two business days, counted from the formalization of the withdrawal by the debtor, in place of the information provided in § 1.

§ 3 The original creditor institution must maintain in its records documentation proving the debtor's decision not to effectuate the portability.

Art. 7 The transfer of funds from the proposing institution to the original creditor institution must be carried out exclusively through a specific Available Electronic Transfer (TED), listed in the Catalog of Messages and Files of the National Financial System Network, using the identification code provided in Article 4, sole paragraph.

§ 1 When it is a real estate credit operation, the fund transfer referred to in the main text must be carried out on one of the reference dates mentioned in Article 5, item IV.

§ 2 For other credit operations not mentioned in § 1, the fund transfer must be carried out on the date of receipt of the information referred to in § 1 of Article 6.

Art. 8 The original creditor institution must confirm to the proposing institution, within two business days from the date of the transfer referred to in Article 7, the receipt of the funds or any inconsistency in the TED information that would prevent the portability.

Art. 9 The original creditor institution must send to the proposing institution, at the address referred to in Article 5, item VII, within two business days from the confirmation of receipt of the funds referred to in Article 8, a document that attests, for all legal purposes, the effective implementation of the portability of the operation.

Sole Paragraph. In real estate credit operations, the document referred to in the main text must contain all information, declarations, and signatures necessary for the registration, in a single act, of the subrogation of the debt and the respective fiduciary or mortgage guarantee on the real estate property subject to the ported credit operation, in favor of the proposing institution, at the competent Real Estate Registry Office, in accordance with Article 167, item II, item 30, of Law No. 6,015 of December 31, 1973.

Art. 10 The costs related to the exchange of information and the transfer of funds between the proposing and original creditor institutions cannot be passed on to the debtor.

Art. 11 A real estate credit operation of the Housing Financial System (SFH) that becomes subject to portability will remain in this condition, including for the purpose of verifying compliance with the requirement to apply resources captured in savings deposits, and must observe the legal and regulatory provisions related to the SFH, except for the maximum limit of the property valuation value.

Sole Paragraph. Other real estate credit operations subject to portability cannot be considered as SFH operations.

Art. 12 In the portability of credit operations that have been assigned to entities not part of the National Financial System, the financial institution responsible for administering the payment flow of the assigned credit operation must assume the obligations of the original creditor institution provided for in this Resolution.

Art. 13 Financial institutions must disclose to their customers the information necessary to exercise the right to portability, as well as the procedures for requesting it, in a location and format visible to the public in their premises and those of their correspondents in the country and on their respective websites.

Art. 14 Portability does not exempt the proposing institution from observing the legal and regulatory provisions applicable to credit operations.

Art. 15 Financial institutions must provide the debtor, upon request, within one business day from the date of the request, with the following information regarding their credit operations:

I - contract number;

II - updated outstanding balance;

III - statement of the evolution of the outstanding balance;

IV - modality;

V - annual nominal and effective interest rate;

VI - total and remaining term;

VII - payment system;

VIII - value of each installment, specifying the principal value and charges; and

IX - date of the last due date of the operation.

Art. 16 Article 1 of Resolution No. 3,401 of September 6, 2006, shall be effective with the following wording:

“Art. 1 .......................................................
.................................................................
§ 4 The provisions in the main text do not apply to credit operations contracted by a natural person.” (NR)

Art. 17 The Central Bank of Brazil is authorized to issue norms, including regarding the disclosure of reports with information on credit portability operations processed in the asset registration system referred to in Article 4, and to adopt the necessary measures for the execution of the provisions of this Resolution.

Art. 18 This Resolution enters into force on May 5, 2014.

Alexandre Antonio Tombini
President of the Central Bank of Brazil