Resolution CMN No. 3577 — Establishes deadlines and complementary provisions for the implementation of Articles 14 and 22 of Provisional Measure No. 432 of May 27, 2008

RESOLUTION NO. 003577

Establishes deadlines and complementary provisions for the implementation of the content contained in Articles 14 and 22 of Provisional Measure No. 432, of May 27, 2008.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4.595, of December 31, 1964, makes public that the MONETARY NATIONAL COUNCIL, in a session held on May 29, 2008, having in view the provisions of Articles 4, item VI, of the aforementioned Law, 4 and 14 of Law No. 4.829, of November 5, 1965, 5 of Law No. 10.186, of February 11, 2001, and 41 of Provisional Measure No. 432, of May 27, 2008,

RESOLVES:

Art. 1. The following deadlines are established for the implementation of the provisions of Article 14 of Provisional Measure No. 432, of May 27, 2008, with respect to the operations included therein:

I - until September 30, 2008, for borrowers to express interest in adhering to the process of renegotiation of their debts;

II - until December 30, 2008, for borrowers of the operations referred to in Article 14, §§ 1 and 2, of the aforementioned Provisional Measure to pay off, including the minimum amortization required in § 2, and to qualify for the benefits ensured therein for the settlement or renegotiation of debts; and

III - until the due date of the 2008 installment, for borrowers who were compliant on April 1, 2008, to fully settle the operations with the respective rebates provided for in item I of Article 14 and Annex XI of MP No. 432, of 2008;

IV - until March 31, 2009, for financial agents to formalize the renegotiations.

Art. 2. The borrower must present, until the respective maturity of the operation in 2008, the technical report required in item IV of Article 22 of Provisional Measure No. 432, of 2008, to be entitled to the benefit provided for in that article.

Art. 3. Borrowers who made the payment of the installments due in 2008 prior to the publication of this Resolution may settle the outstanding balance of the operation until December 30, 2008, with the right to the rebates provided for in the Table contained in Annex XI of Provisional Measure No. 432, of 2008.

Art. 4. Financial institutions will have a deadline until June 30, 2009, to inform the Secretariat of the National Treasury of the Ministry of Finance or, when it concerns operations with resources from the Constitutional Financing Funds of the North (FNO), of the Northeast (FNE) or of the Center-West (FCO), to the Ministry of Integration, the number of renegotiated contracts and the amounts involved in the renegotiations and settlements referred to in this Resolution.

Art. 5. Financial institutions may adopt the following measures in Municipalities where a state of emergency or public calamity was decreed after July 1, 2007, recognized by the Federal Government, whose motivating events have negatively affected the production of the 2007/2008 agricultural harvest in the respective Municipalities:

I - for operating capital operations of the National Program for Strengthening Family Agriculture (Pronaf) of the 2007/2008 harvest, not covered by Proagro Mais, Proagro or other rural insurance, which have not been settled in accordance with Article 22 of Provisional Measure No. 432, of 2008, extension of the outstanding balance for up to three years, setting the first payment in 2009, maintaining the other conditions agreed upon for operations in a state of compliance, including contractual compliance bonuses;

II - for other rural operating capital operations of the 2007/2008 harvest, not covered by Proagro or other rural insurance, extension of the outstanding balance for up to three years, setting the first payment in 2009, maintaining the other conditions agreed upon.

Sole Paragraph. For the purposes of the provisions of this article, the borrower must present, until the respective maturity of the operation, a technical report, individual or collective, demonstrating that the financed production was prejudiced by more than 30% (thirty percent) of the expected volume due to the adverse event that motivated the declaration of a state of emergency or public calamity.

Art. 6. In the process of formalizing the renegotiations referred to in this Resolution, the provisions of Resolution No. 2.682, of December 21, 1999, regarding the classification of the aforementioned operations, must be observed, except for those contracted with the risk of the Constitutional Financing Funds, which are subject to the norms of the management bodies of these Funds.

Art. 7. This Resolution enters into force on the date of its publication.

Brasília, May 29, 2008.

Henrique de Campos Meirelles
President