Lei nº 4.829, de 5 de novembro de 1965 — Institucionaliza o crédito rural (Law No. 4,829 of 5 November 1965 institutionalising rural credit)

English translation of the Portuguese text from planalto.gov.br (the Portuguese text is the official one). Retrieved 2026-10-26.

Presidency of the Republic

Civil House

Suboffice for Legal Affairs

LAW No. 4.829, OF 5 NOVEMBER 1965

Veto Message

Regulation

Institutionalizes rural credit.

THE PRESIDENT OF THE REPUBLIC, I make known that the NATIONAL CONGRESS decrees and I sanction the following Law:

Chapter I

Preliminary Provisions

Art. 1º Rural credit, systematized in the terms of this Law, shall be distributed and applied in accordance with the policy of development of rural production of the Country and with a view to the well-being of the people.

Art. 2º Rural credit is considered to be the supply of financial resources by public entities and private credit establishments to rural producers or their cooperatives for exclusive application in activities that fall within the objectives indicated in the legislation in force.

Art. 3º The specific objectives of rural credit are:

I - to stimulate the orderly increase of rural investments, including for storage, processing and industrialization of agricultural products, when carried out by cooperatives or by the producer on his rural property;

II - to favor the timely and adequate financing of production and the commercialization of agricultural products;

III - to make possible the economic strengthening of rural producers, notably small and medium ones;

I V - to encourage the introduction of rational production methods, aiming at increasing productivity and improving the standard of living of rural populations, and the adequate defense of the soil;

Art. 4º The National Monetary Council, in accordance with the attributions established in

Law No. 4.595, of 31 December 1964, shall regulate rural credit in the Country and shall establish, exclusively, operational norms translated into the following topics:

I - evaluation, origin and allocation of resources to be applied in rural credit;

II - guidelines and instructions related to the application and control of rural credit;

III - selective and priority criteria for the distribution of rural credit;

IV - establishment and expansion of rural credit programs, covering all forms of resource supplementation, including refinancing.

Art. 5º Compliance with the deliberations of the National Monetary Council, applicable to rural credit, shall be directed, coordinated and supervised by the Central Bank of the Republic of Brazil.

Art. 6º It is incumbent upon the Central Bank of the Republic of Brazil, as the control body of the national rural credit system:

I - to systematize the action of financing bodies and promote their coordination with those that provide technical and economic assistance to rural producers;

II - to prepare global plans for the application of rural credit and to know of their execution, with a view to evaluating the results for introducing appropriate corrections;

III - to determine the adequate means of selection and priority in the distribution of rural credit and establish measures for the zoning within which the various financing bodies must act in accordance with the plans prepared;

IV - to encourage the expansion of the rural credit distribution network, especially through cooperatives;

V - to stimulate the expansion of rural credit programs, through financing to the bodies participating in the rural credit distribution network, especially to banks headquartered in production areas and that allocate to rural credit more than 50% (fifty percent) of their applications.

Chapter II

Of the Rural Credit System

Art. 7º The national rural credit system shall basically integrate:

I - The Central Bank of the Republic of Brazil, with the functions indicated in the previous article;

Il - The Bank of Brazil S. A., through its specialized portfolios;

III - The Credit Bank of Amazonia S. A. and the Bank of Northeast of Brazil S.A., through their specialized portfolios or departments, and

IV - The National Cooperative Credit Bank.

§ 1º The following shall be linked to the system:

I - in accordance with the provisions of Law No. 4.504, of 30 November 1964:

a) the Brazilian Institute of Agrarian Reform - IBRA;

b) the National Institute of Agrarian Development - INDA;

c) the National Bank of Economic Development - BNDE;

II - as auxiliary bodies, provided they operate in rural credit within the guidelines set forth in this Law:

a) Banks in which the States participate with the majority of shares;

b) Savings Banks;

c) Private banks;

d) Credit, financing and investment companies;

e) Cooperatives authorized to operate in rural credit.

§ 2º Official bodies of regional valorization and entities providing technical and economic assistance to rural producers, whose services may be used in conjunction with credit, may articulate themselves in the system through agreements.

§ 3º In addition to the entities mentioned in this article, others that the National Monetary Council may admit may incorporate themselves into the system.

Chapter III

Of the Structure of Rural Credit

Art. 8º Rural credit is restricted to the specific field of financing rural activities and shall adopt, basically, the modalities of operations indicated in this Law, to supply the financial needs of the financing and commercialization of own production, as well as those of capital for investments and industrialization of agricultural products, when carried out by cooperatives or by the producer on his rural property.

Art. 9º For the purposes of this Law, rural financings are characterized, according to their purpose, as:

I - financing, when destined to cover normal expenses of one or more periods of agricultural or livestock production;

II - investment, when destined for inversions in goods and services whose enjoyment occurs over the course of several periods;

III - commercialization, when destined, separately, or as an extension of financing, to cover expenses proper to the phase subsequent to the collection of production, its storage, transport or the monetization of titles arising from the sale by producers;

IV - industrialization of agricultural products, when carried out by cooperatives or by the producer on his rural property.

Art. 10. Rural credit operations are subject to the following essential requirements:

I - suitability of the applicant;

II - presentation of an application budget for the specific activities;

III - supervision by the financier.

Art. 11. The following constitute modalities of operations:

I - Current Rural Credit to rural producers of recognized technical capacity and economic substance;

II - Oriented Rural Credit, as a form of technified credit, with technical assistance provided by the financier, directly or through an entity specialized in rural extension, with the objective of raising productivity levels and improving the standard of living of the producer and their family;

III - Credit to Cooperatives of rural producers, as an advance of resources for operation, equipment, provision of services to cooperative members, as well as to finance them, under the same conditions established for direct rural credit operations, the work of costing, collection, transportation, storage and the commercialization of the respective production and the expenses with the improvement of their properties;

III - Credit to cooperatives of rural producers, as an advance of resources for operation and equipment, including for the payment of shares of social capital, destined for investment programs and other purposes, provision of services to cooperative members, as well as to finance these, under the same conditions established for direct rural credit operations, the work of costing, collection, transportation, storage and the commercialization of the respective production and the expenses with the improvement of their properties. (Text given by Decree-Law No. 784, 25/08/69.)

IV - Credit for Commercialization with the purpose of guaranteeing agricultural producers remunerative prices for the placement of their harvests and industrialization of agricultural products, when carried out by cooperatives or by the producer on their rural property;

V - Credit to colonization and agrarian reform programs, to finance colonization and agrarian reform projects as defined in

Law number 4.504, of 30 November 1964.

Art. 12. Rural credit operations carried out by the Brazilian Institute of Agrarian Reform, the National Institute of Agrarian Development and the National Bank for Economic Development, directly or through agreements, shall comply with the modalities of oriented credit, applied to the purposes provided for in Law No. 4.504, of 30 November 1964.

Art. 13. The financing entities participating in the rural credit system may designate representatives to monitor the execution of agreements relating to the application of resources through intervening bodies.

§ 1º In the case of credit to cooperatives, the representatives mentioned in this article may provide technical and administrative assistance, as well as guide and supervise the application of resources.

§ 2º When dealing with an integral agrarian reform cooperative, the provisions of § 2º of art. 79 of Law No. 4.504, of 30 November 1964, shall apply.

Art. 14. The terms, periods, interest and other conditions of rural credit operations, under any of their modalities, shall be established by the National Monetary Council, observing the specific legal provisions not expressly revoked by this Law, including the favor provided for in art. 4º, item IX, of Law No. 4.595, of 31 December 1964, with art. 4º of Decree-Law No. 2.611, of 20 September 1940, being revoked.

Sole paragraph. VETOED

(Revoked by Decree-Law No. 784, 25/08/69.)

Chapter IV

Of Resources for Rural Credit

Art. 15. Rural credit shall have supplies from the following sources:

I - internal:

a) resources that are or will be allocated to the National Fund for Rural Refinancing instituted by Decree No. 54.019, of 14 July 1964;

b) resources that are or will be allocated to the National Fund for Agrarian Reform, instituted by Law No. 4.504, of 30 November 1964;

c) resources that are or will be allocated to the Agroindustrial Reconversion Fund, instituted by Law No. 4.504, of 30 November 1964;

d) budgetary allocations attributed to bodies that integrate or will integrate the rural credit system, with specific destination;

e) amounts that the National Monetary Council will exempt from collection, in the form provided for in

Law No. 4.595, of 31 December 1964, art. 4º, item XIV, letter "c", VETOED

f) own resources of the bodies participating or that will participate in the rural credit system, in the form of art. 7º;

g) amounts collected by the Central Bank of the Republic of Brazil from the banking system, in the form provided for in § 1º of art. 21;

h) product of the placement of rural credit bonds, mortgage or similar securities, issued by government entities participating in the system, with characteristics and under conditions that the National Monetary Council authorizes, observing the legislation regarding the issuance and circulation of securities;

i) product of fines collected under the terms of § 3º of art. 21;

j) result of financing or refinancing operations;

l) other resources of any origin allocated exclusively for application in rural credit;

m) VETOED.

n) VETOED.

II - external:

a) resources arising from loans or agreements, especially reserved for application in rural credit;

b) resources specifically reserved for application in programs of financial assistance to the rural sector, through the National Fund for Agrarian Reform, created by art. 27 of Law No. 4.504, of 30 November 1964;

c) resources specifically reserved for application in financing of agroindustrial development projects, through the Agroindustrial Reconversion Fund, created by art. 120 of Law No. 4.504, of 30 November 1964;

d) product of agreements or covenants entered into with foreign or international entities, in accordance with rules established by the National Monetary Council, provided that they specifically allocate portions for application in a program for the development of rural activities.

Art. 16. The resources destined for rural credit, of external or internal origin, are under the control of the National Monetary Council, which shall annually establish the rules for distribution to the bodies that participate in the rural credit system, under the terms of Art. 7.

Sole paragraph. Any and all fund, already existing or that may be created, specifically destined for financing rural credit programs, shall have its administration determined by the National Monetary Council, respecting the specific legislation, which shall establish the rules and guidelines for its application.

Art. 17. The Central Bank of the Republic of Brazil, in accordance with the attributions established in

Law number 4.595, of 31 December 1964, shall be responsible for understanding or participating in understandings with foreign and international financial institutions, on matters related to obtaining loans destined for financing programs for rural activities, being present at the signing of the agreements and presenting to the National Monetary Council suggestions regarding the rules for their use.

Art. 18. The National Monetary Council may take incentive measures aimed at increasing the participation of the non-official banking network in the application of rural credit.

Art. 19. The setting of the limit on the value of loans referred to in § 2 of Art. 126 of Law No. 4.504, of 30 November 1964, is transferred to the competence of the National Monetary Council, which shall take into account the proposal presented by the board of directors of Banco do Brasil S. A.

Art. 20. The National Monetary Council, annually, in the elaboration of the budget proposal by the Executive Branch, shall include an appropriation destined for the funding of technical and educational assistance to the beneficiaries of rural credit.

Art. 21. The credit institutions and entities referred to in Art. 7 of this Law shall keep applied in typical rural credit operations, contracted directly with producers or their cooperatives, a percentage, to be set by the National Monetary Council, of the resources with which they operate.

§ 1. Establishments that do not wish or cannot fulfill the obligations established in this article shall deposit the corresponding sums in deposit at the Central Bank of the Republic of Brazil, for application for the purposes provided for in this Law.

§ 2. The amounts deposited at the Central Bank of the Republic of Brazil in the form of this article shall earn interest at the rate set by the National Monetary Council.

§ 3. Non-observance of the provisions of this article shall subject the infringer to a fine varying between 10% (ten percent) and 50% (fifty percent) on the amounts not applied in rural credit.

§ 4. Failure to deposit the fine mentioned in the previous paragraph, within 15 (fifteen) days, shall subject the infringer to the penalties provided for in Chapter V of Law No. 4.595, of 31 December 1964.

Art. 21. The institutions referred to in items II and III of the caput of Art. 7, in subitem “c” of item I of § 1 of Art. 7, and in subitems “a”, “b”, “c” and “e” of item II of § 1 of Art. 7, shall keep resources applied in rural credit, observing the form and conditions established by the National Monetary Council. (Redaction given by Provisional Measure No. 784, of 2017)

Effectiveness terminated

Sole paragraph. The institutions mentioned in the caput that present a deficiency in the application of resources shall be subject to the financial costs established by the Central Bank of Brazil and to the provisions of Provisional Measure No. 784, of 7 June 2017. (Included by Provisional Measure No. 784, of 2017)

Effectiveness terminated

Art. 21. The credit institutions and entities referred to in Art. 7 of this Law shall keep applied in typical rural credit operations, contracted directly with producers or their cooperatives, a percentage, to be set by the National Monetary Council, of the resources with which they operate.

§ 1. Establishments that do not wish or cannot fulfill the obligations established in this article shall deposit the corresponding sums in deposit at the Central Bank of the Republic of Brazil, for application for the purposes provided for in this Law.

§ 2. The amounts deposited at the Central Bank of the Republic of Brazil in the form of this article shall earn interest at the rate set by the National Monetary Council.§ 3. Non-observance of the provisions of this article shall subject the infringer to a fine varying between 10% (ten percent) and 50% (fifty percent) on the amounts not applied in rural credit.

§ 3. Non-observance of the provisions of this article shall subject the infringer to a fine varying between 10% (ten percent) and 50% (fifty percent) on the amounts not applied in rural credit.

§ 4. Failure to deposit the fine mentioned in the previous paragraph, within 15 (fifteen) days, shall subject the infringer to the penalties provided for in Chapter V of Law No. 4.595, of 31 December 1964.

Art. 21. The institutions referred to in items II and III of the caput of Art. 7, in subitem “c” of item I of § 1 of Art. 7 and in subitems “a”, “b”, “c” and “e” of item II of § 1 of Art. 7 of this Law shall keep resources applied in rural credit, observing the form and conditions established by the National Monetary Council. (Redaction given by Law No. 13.506, of 2017)

§ 1 The institutions referred to in the caput of this article that present a deficiency in the application of resources in the period from 1 July 2016 to 30 June 2017 shall deposit the corresponding sums in deposit at the Central Bank of Brazil, remunerated in the form established by the National Monetary Council, for application for the purposes provided for in this Law. (Redaction given by Law No. 13.506, of 2017)

§ 2 The institutions referred to in the caput of this article that present deficiencies in the application of resources shall be subject, as of 1 July 2018, in relation to the agricultural year beginning on 1 July 2017, to the financial costs established by the Central Bank of Brazil. (Text given by Law No. 13.506, of 2017)

§ 3

(Repealed). (Text given by Law No. 13.506, of 2017)

§ 4

(Repealed). (Text given by Law No. 13.506, of 2017)

Art. 22. The deposit that constitutes the Fund for the Promotion of Production, referred to in art. 7 of Law number 1.184, of 30 August 1950, is raised to 20% (twenty percent) of the annual allocations provided for in art. 199 of the Federal Constitution, and shall be made by the National Treasury at the Bank of Credit of Amazonia S.A., which shall be responsible for its application, directly and exclusively, within the Amazon region, observing the norms established by the National Monetary Council and other provisions contained in this Law.

§ 1 The Bank of Credit of Amazonia S.A. shall allocate, for application in rural credit, at least 60% (sixty percent) of the value of the fund, and the National Monetary Council may alter this percentage, in view of circumstances that so recommend.

§ 2 The interest on the applications mentioned in this article shall be charged at the usual rates for operations of such nature, as the National Monetary Council shall fix, and the limit provided for in art. 7, §§ 2 and 3, of Law No. 1.184, of 30 August 1950, is abolished.

Chapter V

On Rural Credit Instruments

Art. 23. VETOED

§ 1 VETOED

§ 2 VETOED

Art. 24. VETOED

chapter vi

On the guarantees of rural credit

Art. 25. The following may constitute guarantees of rural loans, in accordance with the nature of the credit operation in question:

I - Agricultural pledge;

II - Livestock pledge;

III - Mercantile pledge;

IV - Industrial pledge;

V - Merchandise note;

VI - Warrants;

VII - Surety;

VIII - Mortgage;

IX - Fidejussory;

X - Others that the Monetary Council may admit.

§ 1

The financial institution that requires the contracting of a rural insurance policy as a guarantee for the granting of rural credit is obliged to offer the financed party the choice between at least two policies from different insurers, and at least one of them may not be from a company controlled by, affiliated with, or belonging to the same economic-financial conglomerate as the creditor.

(Included by Law No. 13.195, of 2015)

§ 2 If the borrower does not wish to contract one of the policies offered by the financial institution, the latter shall be obliged to accept a policy that the borrower has contracted with another insurer qualified to operate with rural insurance.

(Included by Law No. 13.195, of 2015)

§ 3 The financial institution shall include in the financing contracts or credit notes, even in the form of an annex, proof that more than one policy option from different insurers was offered to the borrower and that the borrower expressly adhered to one of the policies offered or, if applicable, that he opted for a policy contracted with another insurer, in the form set forth in §§ 1 and 2 of this article.

(Included by Law No. 13.195, of 2015)

Art. 26. The constitution of the guarantees provided for in the previous article, by free agreement between financed party and financier, shall observe the specific legislation of each type, as well as the complementary norms that the National Monetary Council establishes or approves.

Art. 27. Real guarantees shall always, preferably, be granted without competition.

Art. 28. Except for the mortgage, the other real guarantees offered as security for rural financings shall be valid between the parties, regardless of registration, with all rights and privileges.

Art. 29. The goods acquired and the crops funded or formed by means of rural credit in which guarantee is applicable shall be linked to the respective contractual instrument as special guarantee.

Art. 29 - At the discretion of the financing entity, the goods acquired and the crops funded or formed by means of rural credit may be linked to the respective contractual instrument, including rural credit title, as special guarantee. (Text given by Decree-Law No. 784, 25/08/69.)

Sole paragraph. In any case, the goods and crops referred to in this article may only be alienated or encumbered in favor of third parties, upon express agreement of the financing entity. (Included by Decree-Law No. 784, 25/08/69.)

Art. 30. The National Monetary Council shall establish the terms and conditions under which the insurance of the goods linked to rural credit instruments may be contracted.

Chapter VII

Transitional provisions

Art. 31. The Central Bank of the Republic of Brazil shall assume, until the National Monetary Council resolves otherwise, the charge of the programs for training personnel for the administration of rural credit, including through cooperatives, and may, for this purpose, enter into agreements aimed at conducting courses and obtaining resources to cover the respective expenses.

Sole paragraph. The units interested in training personnel shall contribute to the expenses with the contribution that is arbitrated by the Central Bank of the Republic of Brazil.

Chapter VIII

General provisions

Art. 32. The bodies for guidance and coordination of rural activities, created at the state level, shall prepare their action programs, with respect to specialized credit, observing the provisions of this Law and complementary norms that the National Monetary Council may issue.

Art. 33. The provisions contained in article 4 of Law No. 454, of 9 July 1937, of art. 3 of Decree-Law number 2.611, and of art. 3 of Decree-Law No. 2.612, both of 20 September 1940, and of arts. 1 and 2 of Decree-Law No. 1.003, of 29 December 1938, are extended to the financial institutions that basically integrate the rural credit system, under the terms of art. 7, items I to IV, of this Law.

Art. 34. Rural credit operations, under any modality, in an amount up to 50 (fifty) times the highest minimum wage in force in the Country, shall pay only the indispensable expenses, being exempt from fees (VETOED) related to banking services.

§ 1º VETOED

§ 2º Art. 53 of Law No. 4.595, of December 31, 1964, is revoked.

Art . 35. VETOED

Art . 36. The attributions conferred upon the Commission for Coordination of Agricultural Credit by art. 15 of Delegated Law No. 9, of October 11, 1962, are transferred to the National Monetary Council, in accordance with the provisions of

arts. 3 and 4 of Law No. 4.595, of December 31, 1964, which article is hereby revoked.

Art . 37. The granting of rural credit in all its modalities, as well as the constitution of its guarantees, by public and private credit institutions, shall not depend on the presentation of proof of compliance with tax or social security obligations, or a declaration of assets or a certificate of no fines for infractions of the Forest Code.

Sole paragraph. The communication from the competent office regarding the filing of the tax debt, forest or social security fine, shall prevent the granting of rural credit to the debtor, from the date of receipt of the communication by the credit institution, except if the guarantees offered ensure the solvency of the debt in litigation and of the operation proposed by the interested party.

Art . 38. Rural credit operations shall have a distinct record in the accounting of the financiers and shall be disclosed with emphasis in the balance sheets and trial balances.

Art . 39. This Law enters into force on the date of its publication.

Art . 40. Provisions to the contrary are revoked.

Brasília, November 5, 1965; 144th of Independence and 77th of the Republic.

H. CASTELLO BRANCO

Octávio Bulhões

Hugo de Almeida Leme

This text does not replace the one published in the D.O.U. of 9.11.1965 and

rectified on 22.11.1965 .

*