Normative Instruction BCB No. 520 — Establishes Procedures for Providing Information on Agricultural Credit Instruments and Credit Rights by Financial Market System Operators and Financial Institutions

NORMATIVE INSTRUCTION BCB NO. 520, OF
SEPTEMBER 6, 2024

Establishes procedures for the provision of information regarding agricultural credit instruments and credit rights by institutions operating financial market systems, and by financial institutions.

The Head of the Department of Regulation, Supervision and Control of Rural Credit and Proagro Operations (Derop), in the exercise of the powers conferred by art. 23, item I, letter “a”, of the Internal Regulations of the Central Bank of Brazil, published by Resolution BCB No. 340, of September 21, 2023, and in view of the provisions of art. 5 and 6 of Law No. 4,829, of November 5, 1965, of art. 27, § 2, of Law No. 11,076, of December 30, 2004, of art. 3-B of Law No. 8,929, of August 22, 1994, of art. 176 of the Regulation annexed to Resolution BCB No. 304, of March 20, 2023, of Resolution BCB No. 392, of June 12, 2024, of items 11, of Section 1 (General Provisions), 11, of Section 4 (Rural Savings), and 7, of Section 7 (Agricultural Credit Letter - LCA), all of Chapter 6 (Resources) of the Rural Credit Manual (MCR),

R E S O L V E:

Art. 1 This Normative Instruction establishes procedures for the provision of information regarding agricultural credit instruments and credit rights to the Central Bank of Brazil (BCB).

§ 1 The provisions of this Normative Instruction apply to central registrars and depositories of financial assets, authorized by the BCB to exercise the activity of registration or of centralized deposit of financial assets and securities, and to financial institutions.

§ 2 The information referred to in the caput must comply with the rules established in the Financial Assets Catalog (CAF).

Art. 2 The central registrars and depositories of financial assets must send to the BCB, in addition to the data contained in their computerized systems regarding the Rural Product Note (CPR), the Agricultural Deposit Certificate (CDA), the Agricultural Warrant (WA), the Agricultural Credit Rights Certificate (CDCA), and the Agricultural Receivables Certificate (CRA), the following information regarding:

I - CPR:

a) the natural or legal person who issued the CPR, as established in art. 2 of Law No. 8,929, of August 22, 1994; and

b) the Postal Addressing Code (CEP) of the locality where the total or the majority of the financial resources, as the case may be, originating from the issuance of CPR, will be used.

II - Credit rights used as collateral for the issuance of Agricultural Credit Letter (LCA), CRA and CDCA:

a) the general and specific characteristics of the credit right; and

b) the type of credit instrument that is linked as guarantee.

III - CPR, CRA, CDCA and CDA and WA: the financial institution holding the instruments that is using the respective balance to meet the requirement of resource allocation for rural credit, as established in the Rural Credit Manual (MCR).

Art. 3 The financial institution that holds the credit instruments listed in item III of art. 2 must inform the central registrar and depository of financial assets whether the balance of the credit instrument is being used for the purpose of meeting the requirement of resource allocation for rural credit, as established in the MCR.

Art. 4 The transmission of information referred to in art.
2 must be carried out through the File Transfer System (STA), of the ECR (Rural Credit Requirement) service group, of the Catalog of Messages and Files of the National Financial System Network (RSFN).

Sole Paragraph. The layout, filling instructions and other necessary information for the preparation and sending of the file indicated in this article are available on the BCB website, at the electronic address https://www.bcb.gov.br/estabilidadefinanceira/creditorural

Art. 5 The sending of the file referred to in art. 4 must be done daily.

§ 1 Central registrars and depositories of financial assets must begin the daily transmission of file 90 (ninety) days after the entry into force of this Normative Instruction.

§ 1 Central registrars and depositories of financial assets must begin the daily transmission of the file starting from April 2, 2025. (Amended by Normative Instruction BCB No. 552, of 11/21/2024.)

§ 2 The information regarding the instruments and collateral must be inserted in the file referred to in art. 4 by the fifth business day following the reference date.

Art. 6 The central registrars and depositories of financial assets must indicate a technical team capable of responding to any questions regarding the information provided in accordance with this Normative Instruction.

Sole Paragraph. The indication referred to in the caput must be sent by e-mail to the electronic address surex.derop@bcb.gov.br, within 15 (fifteen) days after the publication of this Normative Instruction.

Art. 7 This BCB Normative Instruction enters into force on the date of its publication.

Claudio
Filgueiras Pacheco Moreira
Head of
Derop

NOTE

Resolution CMN No. 5,087, of June 29, 2023, establishes that the requirement of resource allocation for resources captured through the issuance of Agricultural Credit Letters (LCA) is the duty of the financial institution to keep applied in rural credit operations the value corresponding to 50% (fifty percent) of the value calculated according to the calculation stipulated in Section 7 (Agricultural Credit Letter - LCA) of Chapter 6 (Resources) of the Rural Credit Manual (MCR). To meet this requirement, it is permitted, as an option, that up to 50% (fifty percent) of the calculated value may be applied in: i) Rural Product Note (CPR) issued by a rural producer, including those acquired by financial institutions from third parties; ii) acquisition of Agricultural Credit Rights Certificate (CDCA) and Agricultural Receivables Certificate (CRA), provided that the credit rights linked are entirely originated from transactions in which the rural producer is a direct party; iii) acquisition of Agricultural Deposit Certificate (CDA) and Agricultural Warrant (WA), provided they were issued in favor of a rural producer; and iv) quotas of guarantee funds for credit operations with rural producers, at the value of the subscription, provided that the guaranteed credit operations are rural credit.

2. In order to increase control and verification of compliance regarding agricultural instruments, especially concerning the fulfillment of requirements, we propose that the financial institution that holds CPR, CRA, CDCA and CDA or WA must inform, at the central registrar and depository of financial assets, whether the balance of the credit instrument is being used for the purpose of meeting the requirement of resource allocation for rural credit, as established in the MCR. The sending of this information must be carried out through the File Transfer System (STA), of the ECR (Rural Credit Requirement) service group, of the Catalog of Messages and Files of the National Financial System Network (RSFN).

3. It is worth highlighting 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 foundation 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 dispensing with the RIA. This BCB IN falls under the hypothesis provided for in item V, letter “b”, of the caput of art. 4 of Decree No. 10,411, of 2020, as it is a normative act that aims to preserve liquidity, solvency or soundness of the financial, capital and foreign exchange markets, since the non-receipt of this information in a standardized and systematic manner makes it difficult to monitor compliance with the instruments used by financial institutions to meet the LCA and Rural Savings allocations, generating risks to the soundness of the rural credit market. Thus, based on item V, letter “b” of the caput of art. 4 of Decree No. 10,411, of 2020, it is understood that the issuance of this BCB IN dispenses with the RIA.

Claudio
Filgueiras Pacheco Moreira
Head of
Derop