Resolution CMN No. 1094 - Credit, Financing and Investment Companies and Leasing Companies - Conjunctural Restrictions for Consumer Credit - Maximum Terms for Financing Operations

RESOLUTION NO. 001094

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the MONETARY COUNCIL NATIONAL, in a session held on this date, having in view the provisions of Article 4, item VI, of the aforementioned Law and Articles 2, item V, and 14 of Law No. 4,728 of July 14, 1965,

RESOLVES:

I - Establish the following maximum terms, calculated from the date of acquisition of the good or contracting of the service, for financing operations practiced by credit, financing, and investment companies:

a) 36 (thirty-six) months, for the financing of the acquisition of machinery and equipment, buses, trucks, tractors, airplanes, and fishing boats - the latter when acquired by fishermen, associated professionals or fishermen's cooperatives, or fishing companies - new and of national production;

b) 24 (twenty-four) months, for the financing of the acquisition of the goods referred to in the previous item, when used;

c) 4 (four) months, for the financing of the purchase of other goods of national production or services, including operations without the requirement to prove the direction of credit.

II - In the financings referred to in the previous item, in which, by the regulations in force, fiduciary alienation as guarantee is required, the financed value cannot be higher than the purchase value of the good object of the operation.

III - The provisions of the previous items do not apply to pass-through operations carried out with resources from official financial institutions.

IV - For the purposes of the provision in item "b" of item I, a used vehicle is considered to be one licensed in the name of the final first purchaser for more than 180 (one hundred and eighty) days.

V - The financings for the acquisition of goods and services granted by credit, financing, and investment companies must be carried out with monthly, equal, and successive installments, grace periods are not admitted.

VI - Savings banks and commercial banks must observe the terms established in item I of this Resolution, when carrying out financing operations for the acquisition of durable goods.

VII - Credit card administration companies must require the card user to amortize, at least, 40% (forty percent) of the monthly invoices.

VIII - The provision in the previous item also applies to credit cards restricted to certain commercial establishments, when the user's debtor balances are financed by financial institutions.

IX - The Central Bank may adopt the measures deemed necessary for the execution of this Resolution.

X - This Resolution will enter into force on the date of its publication, with Resolutions Nos. 1,055 of October 30, 1985, 1,079 of January 21, 1986, and 1,087 of January 30, 1986, being revoked.

Brasilia-DF, February 20, 1986

Fernão Carlos Botelho Bracher
President