Resolution CMN No. 2068 — Provides for the reduction of the contractual term of housing financings within the Housing Financial System (SFH)

RESOLUTION NO. 2068

Provides for the reduction of the contractual term of housing financings within the scope of the Housing Financial System (SFH).

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 April 27, 1994, based on Article 7 of Decree-Law No. 2.291 of November 21, 1986,

RESOLVES:

Article 1. To make optional for borrowers of housing financings entered into within the scope of the Housing Financial System (SFH), whose contracts contain a clause covering any residual debtor balance by the Wage Variation Compensation Fund (FCVS), the reduction of the contractual term with the consequent recalculation of the monthly charge.

Paragraph 1. For the purposes of this Resolution, the monthly charge is defined as the sum of amortization installments, interest, and accessories.

Paragraph 2. For the effects of the provision in this article, the monthly charge shall be updated "pro rata die", from the date of the last readjustment until the date of the event, based on the basic remuneration index of savings deposits.

Paragraph 3. The new monthly charge will be obtained according to the following formula:

E' = P' + C' + A

(P + C + A) x N 1 being, P' = ( ---------------- - A) x ----- and N' 1,03

C' = 0.03 x P',

where:

E' = value of the new monthly charge;

P' = value of the new amortization and interest installment;

C' = value of the new contribution to FCVS;

A = value of the accessories, excluding the FCVS contribution, effective before the renegotiation, updated "pro rata die" in the manner of the preceding paragraph;

P = value of the amortization and interest installment, effective before the renegotiation, updated "pro rata die" in the manner of the preceding paragraph;

C = value of the FCVS contribution, effective before the renegotiation;

N = remaining term before renegotiation;

N' = remaining term after renegotiation;

1.03 = 1 + percentage of contribution to FCVS.

Article 2. The term reduction referred to in this Resolution shall be formalized through a contractual addendum, which must contain the data necessary for the perfect identification of the adjustment between the parties, remaining unchanged the conditions and periodicity established contractually for the updating of the debtor balance and the installment.

Sole Paragraph. The contractual alteration referred to in this article is exempt from registration, annotation, or archiving in the Real Estate Registry and in the Registry of Titles and Documents.

Article 3. In the first contractual readjustment of the monthly charge subsequent to the date of the event, the "pro rata die" update referred to in Paragraph 2 of Article 1 shall be compensated.

Article 4. The residual debtor balances of the contracts benefited by the provisions of this Resolution shall be determined based on the provisions of Decree No. 97.222 of December 14, 1988, and reimbursed by the FCVS under the following conditions:

I - grace period equivalent to the remaining term of the original contract;

II - amortization period of 5 (five) years, in consecutive monthly installments;

III - monetary update based on the basic remuneration index of savings deposits, applicable both during the grace period and during the amortization phase;

IV - interest calculated at the contractual rate, applicable both during the grace period and during the amortization phase.

Article 5. This Resolution enters into force on the date of its publication.

Brasília, April 28, 1994

Pedro Sampaio Malan
President

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Note: republication resulting from an error found in Article 3 and in the date of the normative act.