CMN Resolution No. 4315 — Authorizes Renegotiation of Rural Credit Operations Contracted Under Constitutional Financing Funds

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on March 27, 2014, considering the provisions of Article 4, item VI, of Law No. 4,595 of 1964, Articles 4 and 14 of Law No. 4,829 of November 5, 1965, Paragraph 1 of Article 15 of Law No. 7,827 of September 27, 1989, as amended by Law No. 12,793 of April 2, 2013, and Article 5 of Law No. 10,186 of February 12, 2001,

R E S O L V E S:

Article 1. Financial institutions administering the Constitutional Financing Funds of the North (FNO), Northeast (FNE), and Center-West (FCO) are authorized to renegotiate, at their discretion, rural credit operations contracted by December 31, 2008, using resources from these Funds, with fund risk or shared between the bank and the respective fund, which were in a state of default as of December 30, 2012, in the following manner, maintaining the other conditions provided in the current contract:

I - update of the outstanding balance: up to the date of formalization of the renegotiation, by the charges established for normal situations, without the incidence of compliance bonus, rebate, fine, interest, and other default charges;

II - minimum amortization: equivalent to 10% (ten percent) of the outstanding balance updated in accordance with item I;

III - repayment: within 10 (ten) years, with a grace period of up to 1 (one) year, maintaining the periodicity provided in the contract subject to the renegotiation;

IV - risk: the credit risk of the original operation will be maintained;

V - deadline for renegotiation: until December 31, 2014.

Paragraph 1. It is admitted, at the discretion of the financial institution, that the debt with shared risk may be separated, allowing the portion of risk from the Constitutional Fund to be renegotiated based on this Resolution.

Paragraph 2. The following are not eligible for renegotiation under the conditions established by this Resolution:

I - credit operations from borrowers who have misappropriated resources or who have been characterized as unfaithful depositors, except in cases where the borrower has regularized their situation;

II - operations renegotiated or extended under Law No. 9,138 of November 29, 1995, or Resolutions Nos. 2,471 of February 26, 1998, 4,028 of November 18, 2011, 4,147 of October 25, 2012, and 4,260 of August 22, 2013, of the National Monetary Council.

Paragraph 3. Under no circumstances will the return or compensation of paid amounts be admitted.

Paragraph 4. Renegotiation of operations covered by insurance or by the Agricultural Activity Guarantee Program (Proagro) is admitted, excluding the value related to indemnification, if applicable.

Paragraph 5. In operations with partial or full risk of the FCO, FNE, or FNO, the burden resulting from the adjustment of the outstanding balance provided for in item I of the main text shall be borne by the respective source, respecting the proportion of risk of each in the total of the renegotiated operations.

Paragraph 6. The settlement of the operations covered by this Resolution is admitted based on the outstanding balance updated in accordance with item I of the main text, observing the deadline provided for in item V of the main text.

Article 2. This Resolution enters into force on the date of its publication.

Alexandre Antonio Tombini
President of the Central Bank of Brazil