Resolution CMN No. 3806 — Renegotiation and Individualization of Operations under the Land Fund and Agrarian Reform

RESOLUTION NO. 3806

Dispenses with the renegotiation and individualization of operations under the Land Fund and Agrarian Reform.

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 October 28, 2009, considering the provisions of Article 4, item VI, of Law No. 4,595, of 1964, Articles 4 and 14 of Law No. 4,829, of November 5, 1965, Article 11, § 4, of Decree No. 4,892, of November 25, 2003, and Article 41 of Law No. 11,775, of September 17, 2008,

RESOLVES:

Article 1. The following deadlines are established for the implementation of the provisions of Articles 24, item II, and 25, items II and III, of Law No. 11,775, of September 17, 2008, with respect to the operations covered by them:

I - until December 15, 2009, for borrowers to express interest in adhering to the debt renegotiation process;

II - until December 30, 2009, for borrowers to comply with the conditions set forth in Law No. 11,775, of 2008, and thus qualify for the benefits ensured therein for debt renegotiation;

III - until June 30, 2010, for financial agents to formalize the renegotiations of the aforementioned financing contracts with the responsible federal public financial institution.

§ 1. Financial institutions shall have until September 30, 2010, to inform the National Treasury Secretariat of the Ministry of Finance of the number of contracts covered and the amounts involved in the operations covered by Article 1 of this resolution.

§ 2. Borrowers who effectuate the renegotiation of their operations under the conditions defined in this article may make the payment, until December 30, 2009, of the 2009 installment of the renegotiated operations, subject to the application of normal charges, including contractual compliance bonuses.

§ 3. Borrowers whose revenue schedule was altered due to a change in their activities or production systems may request the alteration of the due date for the installments of the Land Fund and Agrarian Reform operations, starting from 2010, by presenting justification regarding the income acquisition period of their project and express authorization from the State Technical Unit.

Article 2. For the purpose of individualization of the financing contracts referred to in Article 26 of Law No. 11,775, of 2008, celebrated by beneficiaries of the Land Fund and Agrarian Reform until December 31, 2004, the following conditions must be observed:

I - for operations in a compliant status at the time of the request, adherence and formalization of the individualization of financing contracts celebrated by beneficiaries of the Land Fund and Agrarian Reform are permitted at any time, within the contractual period;

II - for operations in a non-compliant status at the time of the request, adherence is permitted until December 15, 2009, and formalization until June 30, 2010, of the individualization of financing contracts celebrated by beneficiaries of the Land Fund and Agrarian Reform;

III - in accordance with Articles 282 to 284 of Law No. 10,406, of January 10, 2002, upon effectuating the individualization of the operation, each borrower shall be liable only for the portion of the debt assigned to them, exonerating themselves from joint liability towards the other debtors, and the financial institution must renounce the contractual solidarity of the credit with respect to all other borrowers;

IV - the individualization of the operation shall be effected based on the updated outstanding balance, and for non-compliant operations, the outstanding balance must be calculated under the conditions of Articles 24 and 25 of Law No. 11,775, of 2008, according to the date of contracting;

V - the provisions of Articles 24 and 25 of Law No. 11,775, of 2008, apply to operations of the same kind that are individualized in accordance with Article 26 of that same law.

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

Article 5. Articles 1 to 4 and 6 of Resolution No. 3,679, of January 29, 2009, are hereby revoked.

Brasília, October 28, 2009.

Henrique de Campos Meirelles
President