Resolution CMN No. 3516 Prohibits Charging Fees for Early Settlement of Credit and Financial Leasing Contracts and Establishes Criteria for Present Value Calculation

RESOLUTION NO. 3516

Prohibits the charging of fees resulting from the early settlement of credit grant contracts and financial leasing contracts and establishes criteria for calculating the present value for the amortization or settlement of these contracts.

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 an extraordinary session held on December 6, 2007, considering the provisions of Article 4, items VI and IX, of the aforementioned law, and considering the provisions of Law No. 6,099 of September 12, 1974, with the amendments introduced by Law No. 7,132 of October 26, 1983,

RESOLVES:

Article 1. It is prohibited for financial institutions and leasing companies to charge fees resulting from early settlement in credit grant contracts and financial leasing contracts, entered into from the date of entry into force of this resolution with individuals and with micro-enterprises and small businesses as defined in Complementary Law No. 123 of December 14, 2006.

Article 2. The present value of payments provided for the purposes of amortization or early settlement of the operations referred to in Article 1, contracted at fixed rates, must be calculated:

I - in the case of contracts with a remaining term of up to 12 months, using the interest rate agreed upon in the contract;

II - in the case of contracts with a remaining term exceeding 12 months:

a) using a rate equivalent to the sum of the spread at the date of the original contracting and the Selic rate calculated on the date of the request for amortization or early settlement;

b) using the interest rate agreed upon in the contract if the request for amortization or early settlement occurs within seven days of the celebration of the contract.

§ 1st. The discount rate applicable for the purposes of amortization or early settlement, observing the provisions of items I and II of this article, must be included in a specific contractual clause.

§ 2nd. The spread mentioned in this article must correspond to the difference between the interest rate agreed upon in the contract and the Selic rate calculated on the date of contracting.

Article 3. In situations where expenses associated with the contracting of a credit operation or financial leasing are financed by the institution, the same interest rate contracted for the principal must be adopted.

Sole paragraph. The provisions of this article do not apply to operations contracted with directed resources or with administered rates, such as rural credit, the National Housing System (SFH), and special programs of the National Bank for Economic and Social Development (BNDES).

Article 4. This resolution enters into force on the date of its publication.

Article 5. Article 2 of Resolution No. 3,401 of September 6, 2006 is hereby revoked.

Brasília, December 6, 2007.

Henrique de Campos Meirelles
President