CMN Resolution No. 5,119 — Amends Resolution No. 4,410 on Real Estate Credit Letters (LCI), Resolution No. 4,676 on Real Estate Financing Conditions, Resolution No. 5,006 on Agricultural Credit Letters (LCA), and the Rural Credit Manual (MCR)

Resolution No. 5,119

The current text of the MCR can be found at the following electronic address: www3.bcb.gov.br/mcr.

CMN RESOLUTION NO. 5,119, OF FEBRUARY 1, 2024

Amends Resolution No. 4,410, of May 28, 2015, which provides for the Real Estate Credit Letter (LCI), Resolution No. 4,676, of July 31, 2018, which provides for the general conditions and criteria for contracting real estate financing by financial institutions and other institutions authorized to operate by the Central Bank of Brazil and disciplines the allocation of resources collected in savings deposits, CMN Resolution No. 5,006, of March 24, 2022, which provides for the Agricultural Credit Letter (LCA), and Section 7 (Agricultural Credit Letter – LCA) of Chapter 6 (Resources) of the Rural Credit Manual (MCR).

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 an extraordinary session held on February 1, 2024, based on arts. 4, items VI and VIII, of the aforementioned law, 4, 14 and 21 of Law No. 4,829, of November 5, 1965, 7 of Decree-Law No. 2,291, of November 21, 1986, 17 of Law No. 10,931, of August 2, 2004, 49 of Law No. 11,076, of December 30, 2004, and 95 of Law No. 13,097, of January 19, 2015,

R E S O L V E S:

Art. 1º Resolution No. 4,410, of May 28, 2015, shall enter into force with the following alterations:

“Art. 4º ............................................................................................................

I - thirty-six months, when updated monthly by a price index; and

II - twelve months, in other cases.

................................................................................................................” (NR)

“Art. 4º-A For the purposes of issuing LCI, real estate credit is considered to be the following operations:

I - financing for the acquisition of residential or non-residential real estate;

II - financing for the construction of residential or non-residential real estate;

III - financing to legal entities for the production of residential or non-residential real estate;

IV - financing for the renovation or expansion of residential or non-residential real estate;

V - financing for the acquisition of materials for the construction, expansion, or renovation of residential or non-residential real estate; and

VI - loans to natural persons with mortgage guarantee or with a clause of fiduciary alienation of residential real estate assets.

§ 1º The LCI issued until February 1, 2024, backed by other operations not listed in the caput may be maintained until its maturity date, any kind of extension being prohibited.

§ 2º The operations that do not qualify as real estate credit under the terms established in the caput, used as collateral for LCI issued until February 1, 2024, may remain in this condition until the maturity date of the LCI, with its substitution by operations of the same species being admitted.” (NR)

Art. 2º Resolution No. 4,676, of July 31, 2018, shall enter into force with the following alterations:

“Art. 19. ..........................................................................................................

.........................................................................................................................

§ 6º .................................................................................................................

.........................................................................................................................

II - of interbank real estate deposits collected and of mortgage letters and real estate credit letters issued backed by the real estate financings referred to in arts. 16 and 17;

III - of guaranteed real estate letters issued until February 1, 2024, with a maturity period of less than three years, which have as guarantee the real estate financings referred to in arts. 16 and 17; and

IV - of guaranteed real estate letters issued from February 2, 2024, which have as guarantee the real estate financings referred to in arts. 16 and 17.” (NR)

Art. 3º CMN Resolution No. 5,006, of March 24, 2022, shall enter into force with the following alterations:

“Art. 2º ............................................................................................................

I - twelve months, when updated by a price index;

II - nine months, when not updated by a price index.

................................................................................................................” (NR)

“Art. 2º-A The issuance of LCA is prohibited backed by the following credit rights:

I - advances on foreign exchange operations;

II - export credits, including certificates, promissory notes, or notes representing them;

III - receivable certificates, including agricultural receivable certificates; and

IV - debentures.

§ 1º The LCA issued until February 1, 2024, backed by the credit rights mentioned in the items of the caput may be maintained until its maturity date, any kind of extension being prohibited.

§ 2º The credit rights referred to in the caput, used as collateral for LCA issued until February 1, 2024, may remain in this condition until the maturity date of the LCA, with their substitution by credit rights of the same species being admitted.” (NR)

“Art. 2º-B The LCA issued from February 2, 2024, must observe the following conditions regarding the participation of rural credit operations among the credit rights used as collateral:

I - LCA issued between February 2, 2024, and June 30, 2024: up to 75% (seventy-five percent) of the credit rights used as collateral for issuance may be composed of rural credit operations financed with controlled resources as referred to in the Rural Credit Manual – MCR 6-1-2;

II - LCA issued between July 1, 2024, and June 30, 2025: up to 50% (fifty percent) of the credit rights used as collateral for issuance may be composed of rural credit operations financed with controlled resources as referred to in MCR 6-1-2.

§ 1º The use of credit rights originating from rural credit operations financed with controlled resources as referred to in MCR 6-1-2 is prohibited as collateral for LCA issued from July 1, 2025.

§ 2º For the purposes of compliance with the caput, the operations referring to the collateral must be computed by their respective gross accounting value, determined according to the criteria established in the Accounting Standard of Institutions Regulated by the Central Bank of Brazil (Cosif), without deduction for loss provisions and without addition of installments to be released.” (NR)

Art. 4º Section 7 (Agricultural Credit Letter — LCA) of Chapter 6 (Resources) of the Rural Credit Manual (MCR) shall enter into force with the following alteration:

“7-A - The resources calculated in the manner of item 2 must be applied at freely agreed rates, observing the conditions established in MCR 6-3.” (NR)

Art. 4º (Revoked by CMN Resolution No. 5,157, of July 3, 2024.)

Art. 5º The following are revoked:

I - item III of the caput of art. 4 of Resolution No. 4,410, of 2015; and

II - items “a” and “b” of item 7-A of MCR 6-7.

II - (Revoked by CMN Resolution No. 5,157, of July 3, 2024.)

Art. 6º This Resolution enters into force:

I - on July 1, 2024, with respect to art. 4 and item II of art. 5; and

II - on February 2, 2024, with respect to the other provisions.

ROBERTO DE OLIVEIRA CAMPOS NETO
President of the Central Bank of Brazil