Resolution CMN No. 3163 — Renegotiation of Rural Credit Operations Supported by Procera, Pronaf, and Constitutional Funds

RESOLUTION NO. 003163

Dispenses with the renegotiation of rural credit operations supported by resources of the Special Credit Program for Agrarian Reform (Procera), the National Program for Strengthening Family Agriculture (Pronaf), the Constitutional Financing Funds of the North, Northeast and Central-West, and other sources.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on January 14, 2004, based on the provisions of Article 4, item VI, of the aforementioned law, Articles 4 and 14 of Law No. 4,829 of November 5, 1965, and Article 20 of Law No. 10,696 of July 2, 2003, and considering the content of Article 6 of Law No. 10,823 of December 19, 2003,

RESOLVES:

Article 1. Establish that in the renegotiation of rural credit operations formalized under the Special Credit Program for Agrarian Reform (Procera), whose borrowers are compliant with their obligations or will regularize them by May 31, 2004, the following conditions must be observed:

I - the outstanding balance of the operation must be updated by the charges agreed upon for normal situations until the date of repactuation, becoming subject, from that date, to an effective interest rate of 1.15% per annum (one and fifteen hundredths percent per annum);

II - the maturity of the debt may be extended for a period of up to eighteen years, and the new repayment schedule, to be repactuated after the incorporation of the interest rate mentioned in item I, must provide for annual, equal, and successive installments, with the first due on June 30, 2006;

III - borrowers shall be entitled to a compliance bonus of 70% (seventy percent) on each of the installments of the renegotiated debts, provided that payments occur by the respective due dates.

§ 1. Financial agents shall have until May 31, 2004, to formalize the instruments of repactuation.

§ 2. A Procera borrower who renegotiated their debts under other regulations is not prevented from adhering to the repactuation established in this article.

§ 3. Borrowers of operations with overdue installments may be beneficiaries of the renegotiation:

I - provided that they repactuate the sum of the full overdue installments, taken without compliance bonus and without default charges; or

II - upon full payment of the overdue installments by May 31, 2004, taken without default charges and with the application of the 70% (seventy percent) compliance bonus referred to in the caput, item III.

§ 4. Compliant borrowers, as of July 3, 2003, the date of publication of Law No. 10,696 of July 2, 2003, who do not adhere to the renegotiation shall be entitled to a compliance bonus of 90% (ninety percent), if they effect full payment of their debts by May 31, 2004.

§ 5. Borrowers with overdue installments on dates prior to July 3, 2003, who do not adhere to the renegotiation and provided that they effect total payment of their debts by May 31, 2004, shall be entitled to a bonus of:

I - 70% (seventy percent) on obligations due prior to July 3, 2003, which must be computed, for the purpose of the payment provided in this paragraph, without the incidence of default charges;

II - 90% (ninety percent), on the entirety of debts due from July 3, 2003.

§ 6. Collective or group operations, including those carried out by cooperatives or associations of rural producers, may be individualized to enable each borrower, individually, to renegotiate or settle their debt under the admitted conditions, observed that:

I - it is incumbent upon the financial institution, among other measures, to promote the write-off of the corresponding equitable value in the original credit instrument, mentioning the new credit document;

II - the provisions of Article 2, caput, and Article 3, caput and § 1, of Law No. 10,186 of February 12, 2001, apply to individualized operations, maintaining, if still existing, the guarantee originally linked to the collective or group contract when all borrowers opt for individualization;

III - in cases where at least one of the borrowers belonging to a collective or group contract does not opt for individualization:

a) the financial agent is authorized to contract a debt assumption operation with a cooperative or association from whose social body the borrowers participate, maintaining the guarantee originally linked to the collective or group contract, for the purpose of ensuring that the collateral asset continues to serve the rural activities of the farmers; or

b) if the debt assumption operation is not feasible by the end of the deadline for regularizing obligations, the financial agent will initiate, on the next business day, the measures related to forwarding the contract for collection of pending credits and its registration in the Active Debt of the Union, observed the legislation in force;

IV - in the event of the execution of the guarantee linked to the collective or group contract, due to the provision of item III, letter "b", any surplus of resources, after liquidating the obligations of borrowers who did not opt for individualization, shall be proportionally destined to the amortization of the operations that were individualized.

Article 2. Financial agents must, regarding Procera operations:

I - inform the Secretariats of Family Agriculture of the Ministry of Agrarian Development, and of the National Treasury of the Ministry of Finance, by September 30, 2004, the amounts involved in the renegotiations and liquidations;

II - initiate the measures related to forwarding the contracts for collection of credits and their registration in the Active Debt of the Union, observed the legislation in force, within the following deadlines:

a) on September 30, 2004, in the case of borrowers with obligations due in years prior to 2001 who have not fully settled or repactuated these pending items;

b) 180 days after the due date of an installment in a state of default.

Article 3. Renegotiation of debts arising from rural credit operations formalized with family farmers, mini-producers, small rural producers, and their cooperatives and associations is authorized, whose borrowers are compliant with their obligations or regularize them by May 31, 2004, and provided that the sum of the originally contracted values does not exceed R$35,000.00 (thirty-five thousand reais) per beneficiary, observed the conditions established in Articles 4 to 7.

Article 4. For operating and investment operations formalized until December 31, 1997, supported by resources of the Constitutional Financing Funds of the North, Northeast and Central-West, the Worker Protection Fund - FAT, in the case of operations classified as "Proger Rural", or equalized by the National Treasury, in the total originally contracted value of up to R$15,000.00 (fifteen thousand reais), for investment, and up to R$5,000.00 (five thousand reais), for operating, in one or more operations of the same beneficiary and that have not been renegotiated based on Law No. 9,138 of November 29, 1995, or Resolution No. 2,765 of August 10, 2000, the following conditions must be observed:

I - payment, at the time of formalization of the repactuation instrument, of the value corresponding to 10% (ten percent) of the sum of overdue installments, taken without bonus and without additional default charges, except in the case of operations supported by resources of the constitutional funds, whose beneficiaries are exempt from the aforementioned financial counterpart, observed the provision of Article 7, item II;

II - rebate equivalent to 8.8% (eight and eight tenths percent) on the outstanding balance of investment operations, calculated on the date of repactuation;

III - extension of the remaining outstanding balance, to be liquidated in annual, equal, and successive installments, within the following periods, counted from the date of repactuation:

a) investment operations: ten years, including two years of grace period;

b) operating operations: four years, including one year of grace period;

IV - application of an effective interest rate of 3% per annum (three percent per annum), in investment operations, and of 4% per annum (four percent per annum), in operating operations, from the date of repactuation;

V - granting of compliance bonus, per installment of debt paid by the date of its respective due date, of:

a) 30% (thirty percent), in the case of operations contracted in the region of the Constitutional Financing Funds of the North, Northeast and Central-West;

b) 20% (twenty percent), for operations contracted in the other regions of the Country;

c) 70% (seventy percent), in the case of operations contracted in the semi-arid region, North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley and the Mucuri Valley, included in the area of operation of the Northeast Development Agency (Adene).

Article 5. For operating and investment operations formalized in the period from January 2, 1998, to June 30, 2000, supported by the National Program for Strengthening Family Agriculture (Pronaf), the Constitutional Financing Funds of the North, Northeast and Central-West, the FAT, in the case of operations classified as "Proger Rural", or equalized by the National Treasury, in the originally contracted value of up to R$15,000.00 (fifteen thousand reais), for investment, and up to R$5,000.00 (five thousand reais), for operating, in one or more operations of the same beneficiary, the following conditions must be observed:

I - for borrowers who were compliant on July 3, 2003, or who regularized their debts by November 28, 2003:

a) rebate equivalent to 8.8% (eight and eight tenths percent) on the outstanding balance of investment operations, calculated on January 1, 2002, provided that they are operations contracted with post-fixed financial charges;

b) extension of the outstanding balance calculated on the date of repactuation, to be liquidated in annual, equal, and successive installments, within the following periods, counted from the date of repactuation:

1. investment operations: ten years, including two years of grace period;

2. operating operations: four years, including one year of grace period;

c) application of an effective interest rate of 3% per annum (three percent per annum), from January 1, 2002;

d) granting of a compliance bonus of 70% (seventy percent), per installment of debt paid by the date of its respective due date, in the case of operations contracted in the semi-arid region, North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley and the Mucuri Valley, included in the area of operation of Adene;

II - for borrowers who were in default on July 3, 2003, and who did not regularize their debts by November 28, 2003:

a) the overdue and unpaid installments calculated up to the date of repactuation based on the originally agreed charges pass to the situation of normality, without application of compliance bonus;

b) to repactuate investment operations, up to the date of formalization of the adjustment, effect payment of the value corresponding to 5% (five percent) of the sum of overdue installments, calculated in the manner of letter "a", when the financing is carried out with resources of the Constitutional Funds, or converted to this source based on Article 7, item VI, and of 10% (ten percent) of the sum of overdue installments, when it concerns contracts financed exclusively by other sources, reserved the provision in letter "c";

c) are exempt, to adhere to the repactuation, from the financial counterpart related to operations contracted in the regions of the semi-arid, North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley and the Mucuri Valley, included in the area of operation of Adene;

d) on the date of repactuation, are entitled to a rebate of 8.2% (eight and two tenths percent), on the balance of overdue investment installments, calculated after the payment provided in letter "b", provided that they are operations contracted with post-fixed charges, applying, from the date of repactuation, an interest rate of 3% per annum (three percent per annum);

e) in the position of January 1, 2002, are entitled to a rebate of 8.8% (eight and eight tenths percent) on the outstanding balance referring to the future installments of investment operations, provided that it is an operation contracted with post-fixed charges, having an effective interest rate of 3% per annum (three percent per annum) from that date;

f) on the date of repactuation, must have the total outstanding balance consolidated, calculated in the manner of letters "d" and "e", of investment operations and which will be extended, with effective interest of 3% per annum (three percent per annum), for a period of ten years, including two years of grace period, to be liquidated in equal, annual, and successive installments;

g) to adhere to the repactuation, are exempt from the prior payment of overdue operating installments, their operations will be updated by the effective interest rate of 3% per annum (three percent per annum), from the date of repactuation, to be liquidated in three annual, equal, and successive installments, after one year of grace period;

h) are entitled to a compliance bonus of 40% (forty percent), for each installment of debt paid by the date of its respective due date, those who become compliant under the conditions established in this article, in the case of operations contracted in the regions of the semi-arid, North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley and the Mucuri Valley, included in the area of operation of Adene;

III - borrowers of Group "A" of Pronaf, when making the option for repactuation, automatically lose the rebate of 40% (forty percent) on the principal provided in the original contract.

Article 6. For investment operations formalized in the periods referenced in Articles 4 and 5, supported by resources of the Constitutional Financing Funds of the North, Northeast and Central-West, with a total originally contracted value above R$15,000.00 (fifteen thousand reais) and up to R$35,000.00 (thirty-five thousand reais):

I - for the portion equivalent to the value of R$15,000.00 (fifteen thousand reais): apply the provisions of Articles 4 and 5, according to the date of formalization of the original operation;

II - for the value that exceeds R$15,000.00 (fifteen thousand reais): the originally agreed conditions for normal situations are maintained.

Article 7. For the purpose of the provisions of Articles 3 to 6, the following provisions must also be observed, insofar as applicable:

I - the authorized repactuations must be formalized by May 31, 2004;

II - for the purpose of the provision of Article 4, item I, the value referring to 90% (ninety percent) or, in the case of operations supported by resources of the Constitutional Funds, to 100% (one hundred percent), of the sum of overdue installments may be incorporated into the outstanding balance to be renegotiated;

III - the granting of the compliance bonus is admitted on a portion of the debt that, due from July 3, 2003, the date of publication of Law No. 10,696 of 2003, is paid by May 31, 2004;

IV - in the renegotiation of the operations referred to in Article 5, that:

a) by virtue of the provision of Resolution No. 2,880 of August 8, 2001, the granting of the rebate also applies to operations whose financial charges were reduced to an effective interest rate of 3% per annum (three percent per annum);

b) for the purpose of calculating the outstanding balance on January 1, 2002, the values of any installments in a state of default on December 31, 2001, and respective financial charges that have been debited due to this default, must not be considered;

V - in the event that the operation subject to renegotiation involves a cooperative or association of producers, must be considered for this purpose:

a) each sub-note or individual original credit instrument originally signed by the final beneficiary of the credit;

b) as an individual limit, in the case of an operation that did not involve the transfer of resources to cooperative members or associates, the result of the division of the originally financed value by the total number of cooperative members or associates of the entity that qualify as family farmers, respecting the ceiling of R$35,000.00 (thirty-five thousand reais) for classification;

VI - for the purpose of the provisions of Articles 5 and 6, the managers of the constitutional funds may reclassify operations carried out simultaneously with resources of the FAT and of one of the constitutional funds to the portfolio of the respective fund, as well as, in this case, to assume the burden resulting from the provisions of this article;

VII - the conditions provided in Article 4 apply to borrowers who have renegotiated their debts based on legislations subsequent to Resolution No. 2,765 of 2000, exclusively in the areas of coverage of the constitutional funds, the benefits provided in Law No. 10,696 of 2003 not being cumulative with those previously repactuated;

VIII - for the financings referred to in Articles 4 and 5 carried out in the Northeast Region, in the North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley, and the Mucuri Valley, included in the area of operation of Adene, with mixed resources of the FAT and the Constitutional Financing Fund of the Northeast, or carried out only with resources of the FAT without equalization, whose total originally contracted value does not exceed R$35,000.00 (thirty-five thousand reais), the following provisions prevail:

a) for the portion of the outstanding balance or installment that corresponds to the limit of R$15,000.00 (fifteen thousand reais): apply, as the case may be, the benefits referred to in Article 4 or 5;

b) the portion of the outstanding balance referring to the original credit exceeding the limit of R$15,000.00 (fifteen thousand reais), granted in the semi-arid region, including the North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley, and the Mucuri Valley, included in the area of operation of Adene, may be extended for a period of ten years, counted from the date of repactuation, including two years of grace period, for borrowers who were compliant on July 3, 2003, or who regularized their debts by November 28, 2003, observed the following conditions:

1. application of an effective interest rate of 3% per annum (three percent per annum), from January 1, 2002;

2. granting of a compliance bonus of 50% (fifty percent) on the installment or portion of debt liquidated by the date of its respective due date;

c) the portion of the outstanding balance referring to the original credit exceeding the limit of R$15,000.00 (fifteen thousand reais), granted in the semi-arid region, including the North of Espírito Santo, and in the municipalities of Northern Minas Gerais, the Jequitinhonha Valley, and the Mucuri Valley, included in the area of operation of Adene, may be extended for a period of ten years, counted from the date of repactuation, including two years of grace period, for borrowers who were in default on July 3, 2003, and did not regularize their debts by November 28, 2003, who must have:

1. exemption, to adhere to the repactuation, from the financial counterpart referred to in Article 5, item II, letter "b";

2. the overdue and unpaid installments calculated up to the date of repactuation based on the originally agreed charges for normal situations, without bonus and without additional default charges;

3. applied on the outstanding balance of future installments of investment operations, an effective interest rate of 3% per annum (three percent per annum), from January 1, 2002;

4. consolidated, on the date of repactuation, the total outstanding balance of investment operations, calculated in the manner of items 2 and 3, above, and which will be extended, with effective interest of 3% per annum (three percent per annum), for a period of ten years, including two years of grace period, to be liquidated in equal, annual, and successive installments;

5. compliance bonus of 20% (twenty percent) on each installment or portion of debt paid by the date of its respective due date, for borrowers who come to comply under these conditions;

IX - financial institutions may grant an additional bonus of 10% (ten percent) on the amount due, in the event of early liquidation of the outstanding balance of the operation by December 31, 2006;

X - in the occurrence of the provision of item IX, the compliance bonuses of 20% (twenty percent), 30% (thirty percent), 50% (fifty percent), and 70% (seventy percent), provided in Articles 4 to 7, must be increased, respectively, to 30% (thirty percent), 40% (forty percent), 60% (sixty percent), and 80% (eighty percent);

XI - the operations of the constitutional funds that are renegotiated according to the conditions established:

a) are not entitled to the compliance bonus referred to in Article 10 of Law No. 10,696 of 2003;

b) only those entitled to the compliance bonus on financial charges, as provided for in Article 1, § 5, of Law 10.177, of January 12, 2001, for values classified under Article 6, item II.

Article 8. The authorization to grant a 10% (ten percent) rebate on the value of due installments of agricultural investment credits granted to miniproducers and small rural producers, formalized in the period from June 20, 1995, to December 31, 1997, with an originally contracted value above R$15,000.00 (fifteen thousand reais), is maintained, provided they are paid by the agreed due date.

Article 9. Miniproducers and small rural producers, for the purposes of Articles 3 to 8, are those who obtain:

I - annual gross family income of up to R$40,000.00 (forty thousand reais);

II - 80% (eighty percent), at minimum, of the family income from the agricultural and non-agricultural exploitation of the establishment, observing that:

a) non-agricultural income is considered that related to rural tourism and to artisanal production compatible with the nature of rural exploitation and with the best use of family labor;

b) in the calculation of annual gross family income, 50% (fifty percent) of the gross income from poultry farming, aquaculture, dairy cattle farming, goat farming, fruit growing, vegetable growing, sheep farming, sericulture, and swine farming must be deducted.

Sole Paragraph. The provisions of this article do not apply to operations formalized under the support of constitutional funds, whose classification as miniproducers and small rural producers is established by specific regulation set by the managers of those funds.

Article 10. In the conversion to constitutional funds of rural credit operations, with a value up to R$15,000.00 (fifteen thousand reais), formalized by the financial agents of those funds with rural producers, under other sources, in the event of crop failure due to adverse climatic phenomena occurring in municipalities decreed in a state of emergency or public calamity, with recognition by the Federal Government, the following must be observed:

I - the measure applies to operations existing on May 27, 2002, the date of publication of Law 10.464, of May 24, 2002, or contracted from that date:

a) under the conditions of Pronaf;

b) with family farmers, miniproducers, and small rural producers, outside the scope of Pronaf, who become fully entitled to the financial conditions of that program, from the conversion;

c) with other rural producers, who become entitled to the conditions established in Article 1 of Law 10.177, of 2001, from the conversion;

II - the burden must be absorbed by the respective constitutional fund, calculated from the due date of the operation, excluding default charges;

III - the operational risk of the transferred financing is 50% (fifty percent) for the financial agent and an equal percentage for the constitutional fund receiving the operation, as regulated in Article 6 of Law 10.177, of 2001, except for the provisions of the sole paragraph.

Sole Paragraph. The operational risk is entirely that of the financial agent in the case provided for in Article 9-A of Law 7.827, of September 27, 1989.

Article 11. The financial agents of the constitutional funds must observe the following procedures for granting the compliance bonus provided for in Article 10 of Law 10.696, of 2003:

I - the bonus must be applied to each installment of the renegotiated or non-renegotiated debt, provided it is paid by its due date;

II - operations that are renegotiated based on Articles 3 to 7 and those extended based on Law 9.138, of 1995, and Resolution 2.471, of February 26, 1998, are not entitled to the bonus;

III - the application of the bonus must consider, in chronological order of contracting, all rural financings granted to the same producer with resources from the constitutional funds, provided they are classified under Article 10 of Law 10.696, of 2003.

Sole Paragraph. The granting of the compliance bonus on financial charges, as provided for in Article 1, § 5, of Law 10.177, of 2001, does not prejudice the granting of the bonus provided for in this article, respecting the conditions established for each of these benefits.

Article 12. The burden resulting from the measures provided for in this resolution must be absorbed, observing the provisions of Article 16 of Law 10.696, of 2003:

I - by the constitutional funds, with respect to operations secured or assumed by the respective funds;

II - by the National Treasury, in other cases.

Article 13. Financial institutions must continue to observe the provisions of Resolution 2.682, of December 21, 1999, regarding the classification of operations that are benefiting from this resolution.

Article 14. It is prohibited for the financial agents of the constitutional financing funds to charge any additional taxes or fees for the effective implementation of addendums or other instruments necessary for the formalization of assumption, renegotiation, extension, and composition of debts, as provided for in Law 10.696, of 2003, as an example of the prohibition established in MCR 2-4-2.

Article 15. This resolution enters into force on the date of its publication.

Article 16. Resolutions 3.115, of July 31, 2003, and 3.130, of October 31, 2003, are hereby repealed.

Brasília, January 15, 2004.

Henrique de Campos Meirelles
President