CMN Resolution No. 4372 Defines Financial Charges for Default on Credit Operations Funded by Constitutional 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 September 25 and 29, 2014, based on item VI of Article 4 of Law No. 4,595 of 1964 and Article 1 of Law No. 10,177 of January 12, 2001,

R E S O L V E S:

Article 1 The financial charges applicable to credit operations contracted with resources from the Northern Constitutional Financing Fund (FNO), the Northeastern Constitutional Financing Fund (FNE), and the Central-West Constitutional Financing Fund (FCO), with partial or full risk of these Funds, when in a state of default, shall be as follows:

I - the charges provided for in the normal situation, plus late interest of 1% per annum (one percent per year) on the overdue amount; and

II - a penalty of 2% (two percent) on the overdue amount.

§ 1° For rural credit operations contracted under the National Program for Strengthening Family Agriculture (Pronaf) with partial or full risk of the Constitutional Funds, the following charges apply in the event of default:

I - operations with compliance bonus or rebate: the charges provided for in the normal situation, without application of bonus, rebate, penalty, or late interest; and

II - operations without compliance bonus or rebate: the provisions of items I and II of the caput of this article apply.

§ 2° A credit operation in a state of default, while this situation persists, shall not benefit from contractual compliance bonuses and rebates.

Article 2 The provisions of Article 1 may, at the discretion of the financial institution and with the borrower's consent, be applied to financing formalized up to September 30, 2014, with resources from the FNO, FNE, and FCO.

Article 3 This Resolution enters into force on October 1, 2014.

Alexandre Antonio Tombini
President of the Central Bank of Brazil