Normative Instruction BCB No. 405 of July 31, 2023: Updates MCR Document 1 (Requirements and Instructions for Filling Out the Rural Credit and Proagro Operations System - Sicor) of the Rural Credit Manual

Note - Document 6

The current text of the MCR is available at the following electronic address: www3.bcb.gov.br/mcr.

NORMATIVE INSTRUCTION BCB NO. 405, OF JULY 31, 2023

Updates MCR Document 1 (Requirements and Instructions for Filling Out the Rural Credit and Proagro Operations System - Sicor) of the Rural Credit Manual.

The Head of the Department of Regulation, Supervision and Control of Rural Credit and Proagro Operations (Derop), using the powers conferred upon him by Art. 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84,287, of February 27, 2015, and considering the provisions of item 4 of Section 6 (Accounting and Control) of Chapter 3 (Operations), letter “m” of item 1 of Section 1 (General Provisions) of Chapter 12 and Section 8 (Disqualification and Reclassification) of Chapter 2 (Basic Conditions) of the Rural Credit Manual (MCR),

R E S O L V E S:

Art. 1º The General Conditions Section of MCR - Document 1 (Requirements and Instructions for Filling Out the Rural Credit and Proagro Operations System - Sicor) of the Rural Credit Manual (MCR) shall enter into force with the following alterations:

“8 - For the purposes of Sicor, the useful life of a rural credit operation begins with the first release of resources into the beneficiary's linked account, when it receives the classification SOR01 (In Normal Course), and ends with the classification SOR06 (Totally Renegotiated with New Operation); SOR07 (Liquidated); SOR08 (Totally Disqualified); SOR13 (Partially Disqualified), when the debtor balance is equal to zero; SOR09 (Written Off as Loss); or SOR11 (Registered in the Union's Active Debt).” (NR)

“20 - The dynamic fields must be altered or updated, monthly, throughout the useful life of the operation. The submission of data for the dynamic fields by financial institutions is done via the tag Sicor of Document 3040.” (NR)

“21-A - The submission of data for the dynamic fields by financial institutions is done via the tag Sicor of Document 3040.

Notes:

a) for the completion of these fields, the following must be observed cumulatively:

I - applies only to operations with a contract date from 2/1/2013;

II - SCR Modality 801 to 804; and

III - the operation must not possess special characteristic 38 (rural credit operation without tag Sicor);

b) a credit operation with tag Sicor provided must have an active portfolio greater than zero or an active portfolio equal to zero together with the Exit Information;

c) only on the base date when the credit operation is "written off as loss" will this information be recorded in the tag Sicor;

d) the balance and status data of the operation must not be filled in the tag Sicor until there is a release of resources.” (NR)

“23 - A rural credit operation that does not have a record of fund release after 40 (forty) days from the contract will be suspended, and after 365 (three hundred and sixty-five) days from the contract without a record of fund release, it will be automatically excluded by Sicor.

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(NR)

Art. 2º The Specific Conditions Section of MCR - Document 1 of MCR shall enter into force with the following alterations:

“Field 60-A - Date of disqualification: date on which the irregularity in the rural credit operation was detected.” (NR)

“Field 60-B - Disqualified value: amount of resources diverted from the purpose of the rural credit operation.” (NR)

“72 -
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d)......................................................................................................................

SOR01-In Normal Course:

Status assigned to the operation at the time of the first release of resources. It can evolve to any other status. For example, an operation with status SOR01 can be subject to payment delay, the occurrence of which determines that it be reclassified to SOR02. Once the delay is regularized through payment, the operation must have its status restored to SOR01; unless Liquidated (SOR07) or Totally Disqualified (SOR08) or Partially Disqualified (SOR13);

SOR02-In Delay:

Status assigned to the operation where, on the day following the due date, there has been no payment of the installment. It can evolve to any other status;

SOR12-Default:

Status assigned to the operation where, after 90 (ninety) days of delay, there has been no payment of the installment. It can evolve to any other status;

SOR03-Extended:

Status assigned to the operation subject to extension or delay of the due date, carried out before the originally contracted due date, maintaining all other contractual conditions in force at the time of this act. It can evolve to any other status;

SOR04-Renegotiated Without New Operation:

Status assigned to the operation subject to any contractual alteration, provided it does not qualify as an extended operation (SOR03), nor has it generated a new rural credit operation (SOR05 - Partially Renegotiated with New Operation or SOR06 - Totally Renegotiated with New Operation). It can evolve to any other status, except SOR01;

SOR05-Partially Renegotiated with New Operation:

Status assigned to the new rural credit operation created to receive the part of the renegotiated balance. The remaining balance in the original operation (the non-renegotiated part) retains the status and continues in useful life. To create the new operation, the business code 00000000000000 is used. The new operation, with status SOR05, may encompass the renegotiation of more than one operation and involve more than one rural credit purpose (farming, marketing, investment, and industrialization). The financial institution, when registering the new operation, must provide the Ref Bacen numbers and values related to the operations subject to renegotiation;

SOR06-Totally Renegotiated with New Operation:

Status assigned to the operation whose total renegotiation indicates the end of its useful life. To receive the entire renegotiated balance, a new operation is created using the business code 00000000000000, and status SOR01 (Normal Course) is assigned. The new operation may encompass the renegotiation of more than one operation and involve more than one rural credit purpose (farming, marketing, investment, and industrialization). The financial institution, when registering the new operation, must provide the Ref Bacen numbers and values related to the operations subject to renegotiation. The classification with code SOR06 defines the end of the useful life of the respective operation within the scope of Sicor;

SOR07-Liquidated:

Status assigned to the operation that, after the release (partial or total) of the respective credit in the linked account, shows a "zero" balance, provided it has not been Totally Disqualified (SOR08) or Partially Disqualified (SOR13), in which case it will receive status SOR08 or SOR13. For the purposes of this concept, any eventual balance related to the Proagro additional charge, as provided in MCR 12-3, should not be considered. The classification with code SOR07 defines the end of the useful life of the respective operation within the scope of Sicor;

SOR08-Totally Disqualified:

Status assigned to the operation excluded from the accounting title "rural financing" ("totally disqualified from rural credit"). The disqualification results from a supervision action by the financial institution or the BC. Using the messaging group (COR0005), the financial institution will register the date on which the irregularity was found, the diverted/disqualified amount, and the reason for disqualification. When the irregularity is found, the financial institution will proceed to amortize the balance by the diverted amount. If the totally disqualified operation is already liquidated (SOR07), the Sicor database will be automatically altered to SOR08; and regarding the update of the SCR database, it is the responsibility of the financial institution to make the alteration through correction via web directly in the SCR Panel, on the base date when the exit of the operation was reported, changing the "Situation" field of the <tag Sicor> from 07 (SOR07) to 08 (SOR08) and the Additional Exit Information to 0399 (Other Exits). Such corrections may also be performed by sending a new remittance of this previous base date. The classification with status SOR08 defines the end of the useful life of the respective operation within the scope of Sicor and does not admit assignment of another status;

SOR13-Partially Disqualified:

Status assigned to the operation partially disqualified from the accounting title "rural financing" ("partially disqualified from rural credit"). The disqualification results from a supervision action by the financial institution or the BC. Using the messaging group (COR0005), the financial institution will register the date on which the irregularity was found, the diverted/disqualified amount, and the reason for disqualification. If the partially disqualified operation is already liquidated (SOR07), the Sicor database will be automatically altered to SOR13; and regarding the update of the SCR database, it is the responsibility of the financial institution to make the alteration through correction via web directly in the SCR Panel, on the base date when the exit of the operation was reported, changing the "Situation" field of the <tag Sicor> from 07 (SOR07) to 13 (SOR13) and the Additional Exit Information to 0399 (Other Exits). Such corrections may also be performed by sending a new remittance of this previous base date. Code SOR13 admits being altered only to SOR08;

SOR09-Written Off as Loss:

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SOR11-Registered in the Union's Active Debt:

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e) status SOR07 and SOR08 will only be admitted if field 75 is filled with a value equal to zero;

f) status SOR13 admits filling field 75 with a value greater than or equal to zero;

g) status SOR01, SOR02, SOR03, SOR04, SOR05, SOR06, SOR11, and SOR12 will only be admitted if field 75 (installments 110 to 290 of Document 3040) is filled with a value greater than zero;

h) status SOR09 will only be admitted, when filling the tag Sicor of Document 3040, if the field “credit written off as loss” (installments 310 to 330) is filled with a value greater than zero;

i) in the dynamics of the status field, the following changes are prohibited:

I - from SOR04 or SOR05 to SOR01;

II - from SOR06 to any status, except SOR08 or SOR13;

III - from SOR07 to any status, except SOR08 or SOR13;

IV - from SOR08 to any status;

V - from SOR09 to any status, except SOR08 or SOR13;

VI - from SOR11 to any status;

VII - from SOR13 to any status, except SOR08.” (NR)

Art. 3º Item 7 of the General Conditions Section of MCR - Document 1 of MCR is hereby revoked.

Art. 4º MCR - Document 1 of MCR is available on the website of the Central Bank of Brazil, on the MCR consultation page, available at the electronic address www3.bcb.gov.br/mcr.

Art. 5º This Normative Instruction BCB enters into force on the date of its publication.

Claudio Filgueiras
Pacheco Moreira

NOTE

The normative alterations promoted by CMN Resolutions that regulate the 2023/2024 Agricultural and Livestock Plan and operational improvements implemented in the Rural Credit and Proagro Operations System (Sicor) require adjustments to Document 1 (Requirements and Instructions for Filling Out the Rural Credit and Proagro Operations System - Sicor) of the Rural Credit Manual (MCR).

2. It should be noted that, by virtue of Art. 24 of Decree No. 10,411, of June 30, 2020, the issuance of normative acts by bodies and entities of the direct, autarchic, and foundational federal public administration, from October 14, 2021, must be preceded by a Regulatory Impact Analysis (RIA). However, in its Article 4, the aforementioned decree establishes the hypotheses for exemption from conducting an RIA. This IN BCB falls under the hypothesis provided for in item III, a normative act considered low impact, given that it does not cause an increase in costs for economic agents. Thus, based on item III of Art. 4 of Decree No. 10,411, of 2020, it is understood that the issuance of this IN BCB is exempt from conducting an RIA.

Claudio
Filgueiras Pacheco Moreira
Head of Derop