Resolution CMN No. 4,883 — Consolidation of Provisions in Chapters 1, 2 and 3 of the Rural Credit Manual (MCR) Regarding Principles, Basic Concepts and Operations Applicable to Rural Credit — BCB — BR

Resolution No. 4,652

The current text of the MCR is available at the following electronic address: www3.bcb.gov.br/mcr.

RESOLUTION CMN NO. 4,883, OF DECEMBER 23, 2020

Provides for the consolidation of the provisions inserted in Chapters 1, 2 and 3 of the Rural Credit Manual (MCR), regarding principles, basic concepts and operations applicable to rural credit.

The Central Bank of Brazil, in accordance with art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held from December 18 to 23, 2020, taking into account the provisions of arts. 4, item VI, of the aforementioned Law, 4, 5 and 14 of Law No. 4,829, of November 5, 1965, and of art. 5 of Decree No. 10,139, of November 28, 2019,

R E S O L V E S:

Art. 1st
The following are consolidated in the Rural Credit Manual (MCR), according to the annexes to this Resolution:

I - Chapter 1 (Preliminary Provisions);

II - Sections 1 (General Provisions), 2 (Budget, Plan and Project), 3 (Expenses), 4 (Methodology for calculating Rural Credit Interest Rates – TCR), 4-A (Methodology for calculating Rural Interest Rates of Constitutional Financing Funds – TRFC), 5 (Utilization) and 6 (Reimbursement) of Chapter 2 (Basic Conditions); and

III - Sections 1 (Formalization), 2 (Working Capital Credits), 3 (Investment Credits), 4 (Marketing Credits), 5 (Industrialization Credits) and 7 (Transitional Norms) of Chapter 3 (Operations).

Art. 2nd This Resolution enters into force on May 1, 2021.

Bruno Serra Fernandes

President of the Central Bank of Brazil, substitute

TITLE:
RURAL CREDIT

CHAPTER:
Preliminary Provisions - 1

SECTION:
Authorization to Operate in Rural Credit and Operational Structure - 1 (*)

1 - To operate in rural credit, the financial institution must obtain authorization from the Central Bank of Brazil, complying with:

a) proving the existence of a specialized sector, represented by a rural credit portfolio, with its own structure, direction and regulations and with qualified personnel, observing the provisions of item 2, when applicable;

b) disseminating basic norms within its branches and keeping them updated, with the objective of adjusting operations to relevant legal criteria and instructions from the Central Bank of Brazil, systematizing work methods compatible with the peculiarities of credit and standardizing conduct in its operations;

c) maintaining technical advisory services at the portfolio level, at its exclusive expense, aiming at the adequate administration of rural credit, as well as ensuring the provision of technical assistance at the property or company level, when due;

d) indicating the forecast of free resources that will be allocated to rural credit modalities; and

e) designating, among the administrators homologated by the Central Bank of Brazil, the person responsible for the rural credit area.

2 - In the case of a credit cooperative, the specialized sector referred to in item 1 may be organized, by mutual agreement and on a larger scale, in the central credit cooperative or in the confederation of central credit cooperatives to which it is affiliated.

3 - The request for authorization to operate in rural credit must be filed with the Central Bank of Brazil, accompanied by a declaration, signed by administrators whose representativeness is recognized by the social statute, stating that the institution meets the requirements established in item 1.

4 - The requirements established in item 1 may be waived for institutions that wish to operate exclusively in marketing credits granted through negotiation or conversion into cash of titles originating from the sale of production proven to be their own by rural producers and their cooperatives.

5 - Institutions authorized to receive rural savings deposits may capture savings deposits within the Brazilian Savings and Loan System (SBPE), provided that:

a) they have authorization from the Central Bank of Brazil to constitute a real estate credit portfolio;

b) they communicate to the Central Bank of Brazil the start of capturing savings deposits within the SBPE, at least 2 (two) business days in advance, relative to the day of the first capture.

6 - With regard to the provisions of item 5, the following must be observed:

a) the total daily balance of savings deposits within the SBPE cannot exceed 10% (ten percent) of the total balance of savings deposits verified on the previous day, considering both modalities;

b) if the percentage referred to in item "a" is exceeded, the institutions are prohibited from capturing such savings deposits until compliance with the mentioned limit is restored.

7 - Institutions part of the SBPE may capture rural savings deposits, provided they have authorization from the Central Bank of Brazil to operate in rural credit and communicate to the Autarchy the start of capturing rural savings deposits, at least 2 (two) business days in advance, relative to the day of the first capture, observing that:

a) the total daily balance of rural savings deposits cannot exceed 10% (ten percent) of the total balance of savings deposits verified on the previous day, considering both modalities;

b) if the percentage referred to in item "a" is exceeded, the institutions are prohibited from capturing rural savings deposits until compliance with the mentioned limit is restored.

8 - The institutions referred to in items 5 and 7 must:

a) observe the mandatory direction established for resources captured in savings deposits within the SBPE, according to their own regulations, and the direction in rural savings deposits, as provided for in Chapter 6 of this manual, in accordance with current regulation;

b) maintain internal controls that allow the identification of the daily balance of each savings deposit modality;

c) provide information to the Central Bank of Brazil, in accordance with current regulation, regarding the balances of savings deposits of both modalities, as well as regarding real estate credit and rural credit operations contracted;

d) keep at the disposal of the Central Bank of Brazil, for a period of 5 (five) years, the data related to deposits of both modalities.

9 - Upon finding non-compliance with the provisions of items 5 to 8, the Central Bank of Brazil will summon the legal representatives of the institution and, if deemed necessary, its controllers, to inform about the measures that will be adopted with a view to regularizing the situation, observing that:

a) the appearance of the legal representatives of the institution or its controllers must occur within a maximum period of 5 (five) days counted from the date of the summons, which may be formalized through the drafting of a specific term by the Central Bank of Brazil;

b) a regularization plan endorsed by the institution's board of directors and the board of administration, if any, containing the measures provided for for compliance and its respective execution schedule, which cannot exceed 6 (six) months, extendable, at the discretion of the aforementioned Autarchy, by two more identical periods, with reasoned grounds at the end of each period, must be presented to the aforementioned Autarchy, within a period set by it, not exceeding 60 (sixty) days, counted from the date of the summons referred to in item "a" or from the drafting of the appearance term.

10 - Technical advisory services at the portfolio level may be provided:

a) by employees of the financial institution's own staff, provided they hold the essential technical qualifications;

b) by other natural or legal persons legally qualified;

c) by specialized public bodies.

11 - Technical advisory services cannot be provided by a natural or legal person who exercises remunerated activity in the production or sale of inputs usable in agriculture and livestock.

12 - Financial institutions authorized to contract rural credit operations through rural credit agents are observed the following conditions:

a) the rural credit agent acts on behalf of and under the guidelines of the contracting financial institution, which assumes full responsibility for the service provided to borrowers through the contracted agent;

b) it is the duty of the contracting financial institution to guarantee the integrity, reliability, security, confidentiality and compliance with legislation and regulation of rural credit operations contracted through rural credit agents;

c) natural and legal persons of public or private law, proven to be technically and operationally qualified, at the discretion and under the responsibility of the contracting financial institution, are eligible to exercise the function of rural credit agents;

d) the contracted rural credit agent may provide the following services:

I - filling in the applicant's registration data, attaching supporting documentation, in the format and means of sending determined by the contracting financial institution;

II - reception, preliminary analysis and forwarding to the contracting financial institution of proposals, technical projects, simple plans and documentation required for the contracting of a rural credit operation;

III - advising the applicant of the rural credit operation on rural credit norms, rural insurance, the Agricultural Activity Guarantee Program (Proagro) and the specifics related to the program or credit line object of the financing;

IV - carrying out inspection work, under the full responsibility of the contracting financial institution, provided that the rural credit agent does not simultaneously exercise technical assistance to the financed enterprise;

V - notifying the borrower, personally and with receipt, and sending non-judicial collection notices;

VI - keeping the documentation related to the rural credit operation, as defined by the contracting financial institution, in the quality of faithful depositary, observing the regulatory period, in a specific dossier for each contracted operation;

e) the attributions and activities of the rural credit agent must be explicit in the contract signed with the contracting financial institution, as well as the other obligations of the parties and the remuneration of the contracted party;

f) no cost related to the contracting and activities of the credit agent may be passed on to the rural credit borrower, except in the case of unforeseen expenses caused by the borrower themselves;

g) when the rural credit agent service is provided by an entity of technical assistance and rural extension, the mandatory linkage of the rural credit contracting to the contracting of technical assistance and rural extension services provided by that entity is prohibited, and the borrower must be oriented in this sense;

h) the rural credit agent is prohibited from operating with its own system for registering rural credit operations, distinct from that used by the contracting financial institution;

i) the Central Bank of Brazil is authorized to issue norms and adopt measures necessary to preserve good banking practices in the processes of contracting rural credit operations through rural credit agents.

TITLE:
RURAL CREDIT

CHAPTER:
Preliminary Provisions - 1

SECTION:
Beneficiaries - 2 (*)

1 - The beneficiary of rural credit is:

a) rural producer (natural or legal person);

b) cooperative of rural producers;

c) those referred to in art. 49 of Law No. 8,171, of January 17, 1991, and art. 3 of Decree-Law No. 784, of August 25, 1969;

d) the silviculturist, provided that, if not emancipated, they are assisted by the National Indian Foundation (Funai), which must also sign the credit instrument.

2 - The following are not beneficiaries of rural credit:

a) foreigner residing abroad;

b) rural union;

c) partner, if the partnership contract restricts access of any of the parties to financing;

d) person unrelated to tribal groups or indigenous communities who engages in agricultural or extractive activity in indigenous areas.

3 - In the granting of rural credit, the following classification of the rural producer, natural or legal person, must be observed, according to the Annual Gross Agricultural Revenue (RBA):

a) small producer: up to R$415,000.00 (four hundred and fifteen thousand reais);

b) medium producer: above R$415,000.00 (four hundred and fifteen thousand reais) up to R$2,000,000.00 (two million reais); and

c) large producer: above R$2,000,000.00 (two million reais).

4 - The classification of the producer is the responsibility of the financial institution, which must:

a) carry it out by the means at its disposal as part of the borrower's registration form;

b) observe the gross revenue limit of R$3,600,000.00 (three million and six hundred thousand reais) for the purpose of applying the provisions of §§ 1 and 2 of art. 4 of Law No. 10,522, of July 19, 2002.

5 - For the purposes of the classification provided for in item 3:

a) the RBA must correspond to the sum of revenues from all rural activities explored by the producer;

b) rural activity is understood as the agricultural, livestock, and vegetable and animal extractive exploitation, as well as related services provided by the producer, in accordance with current legal provisions;

c) the RBA must be representative of 1 (one) civil year of normal production, at the discretion of the financial institution, verified among the last 3 (three) years and calculated:

I - through Fiscal Accounting Bookkeeping or equivalent accounting records, in the case of a legal person;

II - through the Rural Producer's Cash Book, the Individual Income Tax Return (DIRPF) or balance sheet, in the case of a natural person;

III - by estimated revenue, in the case of a producer starting in the activity, when there is expansion of the rural activity, or if the documents provided for in items I and II cannot be used;

d) in credit granted to a condominium or group of producers under a partnership regime, the classification used will be that of the co-owner or partner producer with the highest RBA calculated according to item "c";

e) a rural small producer is considered the beneficiary classified under item "a" of item 3 or holder of a Declaration of Aptitude for Pronaf (DAP);

f) a rural medium producer is considered the beneficiary who meets the conditions of the National Program for Supporting the Medium Rural Producer (Pronamp);

g) a rural large producer is considered the beneficiary whose revenues from non-rural activities represent more than 20% (twenty percent) of their total gross revenue, regardless of the amount of their revenues and without prejudice to the observance of the norms established in items "e" and "f".

6 - The granting of rural credit by official or mixed-economy financial institutions for fixed investments is prohibited to:

a) a branch of a company headquartered abroad;

b) a company whose majority of capital with voting rights belongs to natural or legal persons residing, domiciled or headquartered abroad.

7 - The restriction of item 6:

a) does not apply to external resources that have been made available to a financial institution by a foreign government, its agencies or international bodies, for on-lending to previously indicated persons;

b) extends to private financial institutions, regarding applications with resources from development funds and programs;

c) does not apply when the rural credit is intended for economic activity provided for in art. 1 of Decree No. 2,233, of May 23, 1997.

8 - The granting of credit to tenants or similar depends on the presentation of supporting documentation of the contractual relationship between the landowner and the credit beneficiary.

9 - The letter of consent is a suitable document to prove the contractual relationship between the landowner and the credit beneficiary, provided that in the form adopted by the financial institution it has the borrower's agreement and the type of contract, its object and the rural property are characterized therein.

10 - Financial institutions are prohibited from contracting or renewing, under the protection of resources from any source, rural credit operations, including the provision of guarantees, as well as leasing operations in the rural segment, to natural and legal persons registered in the Employers' Registry who maintained workers in conditions analogous to slavery, managed by a federal public administration body, due to a final administrative decision regarding the infringement notice.

TITLE:
RURAL CREDIT

CHAPTER:
Preliminary Provisions - 1

SECTION:
Technical Assistance - 3 (*)

1 - Technical assistance and rural extension comprises:

a) elaboration of a plan or project;

b) technical guidance at the property or company level.

2 - It is up to the producer to decide on contracting technical assistance services, except when considered indispensable by the financier or when required by regulation of operations with public budget resources.

3 - Technical assistance and rural extension must be provided by professionals registered with the Regional Council of Engineering, Architecture and Agronomy (Crea), Federal or Regional Council of Agricultural Technicians, Regional Council of Veterinary Medicine (CRMV) or Regional Council of Biology (CRB).

4 - Technical assistance and rural extension is provided directly to the producer, usually at the location of their activities, with the objective of guiding them in the effective conduct of the financed enterprise.

5 - The provider of technical assistance and rural extension must maintain permanent monitoring of the enterprise, providing reports to the financial institution, within 15 (fifteen) days of the visit, with registration of at least:

a) stage of execution of works and services;

b) technical recommendations given to the producer;

c) planned production and reasons for any alterations compared to what was planned in the plan or project;

d) identification of development stages of crops and livestock;

e) events harmful to production or that make the use of the technology recommended in the plan or project unfeasible;

f) quantification of inputs actually applied;

g) relevant occurrences, including eventual irregularities.

6 - Technical assistance services cannot be provided by natural or legal persons who engage in the activity of production or sale of inputs usable in agriculture and livestock, except when it concerns:

a) a cooperative, in providing technical assistance to its members;

b) a producer of supervised or certified seeds or seedlings (natural or legal person), in providing technical assistance to its clients;

c) an integrating company, in providing technical assistance to its integrated producers.

7 - Group technical assistance is admitted in rural credit granted to small producers, observing that:

a) it must be provided to groups of, at most, 20 (twenty) small rural producers who present common characteristics in terms of average size of their farms, crops or livestock, production pattern and level of technology and income; and

b) the technical guidance report can be made in a group manner.

8 - The borrower may contract directly or replace the company or professional, for the elaboration of the plan or project or for the provision of technical guidance.

9 - The financial institution may challenge the hiring of the technician or company, if there are restrictions or if it does not meet the legal and regulatory requirements for the exercise of the profession.

10 - For localities not covered by the Agricultural Zoning for Climatic Risk (Zarc), the financial institution is allowed, due to the climatic peculiarities preceding each harvest, to define any extension of the usual planting period in the region, provided it is based on a formal recommendation from a public entity of technical assistance and rural extension.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
General Provisions - 1 (*)

1 - The granting of rural credit is subject to the observance of the recommendations and restrictions of the agroecological zoning and the Ecological-Economic Zoning (ZEE).

2 - The presentation of geodetic coordinates (GC) is mandatory for rural credit operations for working capital and investment that are linked to a delimited area of the rural property, which must:

a) be delivered, in physical or electronic media, together with the budget, plan or project related to the enterprise and informed in the Rural Credit and Proagro Operations System (Sicor);

b) comprise the points necessary to identify the perimeter that defines the area or areas object of the financing operation;

c) be registered in Sicor by the financial agent, after verification of the consistency of the data regarding:

I - location of the plot in the municipality(ies) where the respective property is situated;

II - compatibility between the area calculated through the GC and the financed area provided for in the credit contract.

3 - The borrower must communicate to the financial institution any alteration of the initially presented area, with the new GC, and it is up to the financial institution to make the necessary adjustments in Sicor, prohibiting the alteration of area in Sicor after 30 (thirty) days from the date of the end of planting.

4 - The financial institution must use the normal client registry for the granting of rural credit.

5 - The registration form must remain in the possession of the financial institution granting the credit to the final beneficiary, at the disposal of the Central Bank of Brazil's inspection necessarily in digital format.

6 - The rural producer who industrializes their products or sells them directly to the consumer, at retail, or to a purchaser domiciled abroad, is obliged to present the Negative Debt Certificate (CND), issued by Social Security.

7 - Financing can only be granted if the defendant deposits in court the amount in dispute, when the judicial collection refers to debts originating from contributions to the National Institute of Colonization and Agrarian Reform (Incra).

8 - For rural credit operations subject to renegotiation under the protection of decisions of the National Monetary Council, provided that the debtor remains in the regular activity of agricultural production, the following are permitted with regard to the rules provided for in Resolution No. 2,682, of December 21, 1999:

a) classification in a lower risk category, according to the provision of its art. 3, without considering the existence of other operations of a different nature classified in a higher risk category;

b) observance of the provisions of its art. 8, allowing the institution, in compliance with consistent criteria and provided for in that Resolution, to reclassify the operation to a lower risk category.

With regard to the provisions in item 8, it must be observed that:

a) also applies to rural credit operations carried out with resources from the Constitutional Fund for Financing of the Center-West (FCO) and the Worker Protection Fund (FAT) covered by authorizations for refinancing, renegotiations or specific extensions from their respective Managing Bodies or Councils, as long as the aforementioned operations are carried out with the risk of financial agents;

b) renegotiation is considered to be the composition of debt, extension, novation, the granting of a new operation for partial or full settlement of a previous operation or any other type of agreement that implies alteration in the maturity dates or in the payment conditions originally agreed upon.

10 - Rural working capital and investment operations that have been subject to partial coverage of losses by the Agricultural Activity Guarantee Program (Proagro) or by a rural insurance modality, can only be renegotiated through the exclusion of the value referring to the indemnity received by the beneficiary, as applicable.

The granting of rural credit for financing agricultural activities in
municipalities that are part of the Amazon Biome, except for the content in item 14, will be conditioned to:

a) presentation, by the interested parties, of one of the documents below:

document issued by a real estate registry office no older than 1 (one) year that
proves ownership of the rural property;

application for land regularization, in the case of occupation in Union areas, in accordance with Law No. 11.952, of June 25, 2009;

III

document proving regular occupation of State areas, according to specific
state regulation, or, in the absence thereof, protocol of land regularization application, issued by the competent state body;

Term of Use Authorization (TAU) or Concession of Real Right of Use (CDRU),
issued by the Union Property Secretariat, or a corresponding document issued by the respective State Government, when it comes to areas under its domain, in the case of regular occupants of floodplain areas;

declaration from the body responsible for Sustainable Development Reserves,
Extraction Reserves and National Forests, part of the Sustainable Use Conservation Units, in the case of inhabitants or users in regular situation;

list provided by Incra of beneficiaries of the settlement project, in
the case of beneficiaries of the National Agrarian Reform Program (PNRA) classified in Groups “A” and “A/C” of the National Program for Strengthening Family Agriculture (Pronaf); or

VII

Declaration of Aptitude for Pronaf (DAP), when it comes to beneficiaries
classified in Pronaf;

b) presentation, by the interested parties, of the receipt of registration in the Rural Environmental Registry (CAR), established by Law No. 12.651, of May 25, 2012;

c) verification, by the financial institution:

of the non-existence of valid embargoes on the economic use of areas illegally deforested on the property, as published by the Brazilian Institute of Environment and Renewable Natural Resources (Ibama);

of the non-existence of restrictions on the settled beneficiary, for illegal deforestation, as published by Incra, in the case of financing under the PNRA;

III

of the veracity and validity of the documents referred to in this item, through electronic verification with the issuing body, dispensing with this verification when it comes to a document not available in electronic medium; and

d) inclusion, in the credit instruments of new investment operations, of a clause providing that, in case of embargo of the economic use of areas illegally deforested on the property, subsequent to the contracting of the operation, the release of installments will be suspended until the environmental regularization of the property and, if regularization is not effected within 12 (twelve) months from the date of the charge, the contract will be considered due prematurely by the financial agent.

The granting of rural credit for financing agricultural activities
will be conditioned to the presentation of a receipt of registration in the CAR, established by Law No. 12.651, of 2012, which constitutes a sufficient instrument to meet the condition provided in art. 78-A of the aforementioned Law, except for the provisions in items 11, 14 and 15, and observing the following conditions and exceptions:

a) in the case of PNRA beneficiaries classified in Groups “A” and “A/C” of Pronaf, the receipt of registration in the CAR of the beneficiary's individual lot will be required, observing that, in the absence of this document, the receipt of registration in the CAR referring to the perimeter of the settlement project may be presented, in which case the borrower must appear on the list of beneficiaries of the agrarian reform settlement object of registration in the CAR;

b) in the case of traditional peoples and communities inhabitants or users in regular situation in Sustainable Use Conservation Units, the receipt of registration in the CAR of the Unit, carried out by the body responsible for its management, must be presented;

c) in the case of quilombolas and other traditional peoples and communities in areas and collective use territories, the receipt of registration in the CAR of the area or territory, carried out by the body or institution competent for its management or by its representative entity, must be presented;

d) in the case of indigenous peoples located in Indigenous Lands indicated by Funai to compose the database of the National System of Rural Environmental Registration (Sicar), the receipt of registration in the CAR is dispensed with, provided that they are not owners of rural properties; and

e) in the case of holders or possessors of rural properties located partially or entirely within Conservation Units, part of the National System of Conservation Units of Nature (SNUC), in accordance with Law No. 9.985, of July 18, 2000, the receipt of registration in the CAR must be presented.

13 - The provisions of items 11 and 12 also apply to rural financing for partners, sharecroppers and tenants.

The following Pronaf beneficiaries are exempt from the requirements provided in letters "a" and
"b" of item 11, upon presentation of DAP:

a) artisanal fishermen, according to supporting documentation issued by the competent body, who are not owners of rural property and whose financing project is linked to the artisanal fishing activity;

b) extractivists who are not owners of rural property and who are not occupants of Conservation Units.

15 - In municipalities partially located in the Amazon Biome, the provisions of items 11 to 14 do not apply to the granting of rural credit for agricultural activities on properties located entirely outside the aforementioned Biome, according to a declaration issued by the competent environmental body based on the Biomes Map of Brazil prepared by the Brazilian Institute of Geography and Statistics (IBGE).

The granting of rural credit to rural producers and their cooperatives for planting, renewal or working capital of sugarcane crops or industrialization of sugarcane destined for the production of ethanol, other biofuels derived from
sugarcane and sugar, except brown sugar, must observe the following:

a) it is restricted to areas indicated as suitable for the expansion of planting, according to the provisions of the Agroecological Zoning of Sugarcane, established by Decree No. 6.961, of September 17, 2009, observing the recommendations of the agricultural zoning of climatic risk of this crop;

b) it is prohibited, if the financing is intended for new planting areas or for the expansion of existing ones as of 28/10/2009, in the areas:

of the Amazon and Pantanal Biomes and the Upper Paraguay Basin;

of indigenous lands;

III

with slope greater than 12% (twelve percent), or occupied with native vegetation cover or reforestation;

IV - of forest remnants, in areas of environmental protection, dunes, mangroves, escarpments and rock outcrops, urban and mining areas.

The provisions of item 16 do not apply to the granting of rural credit for:

a) the production of sugarcane in areas occupied with this crop as of 28/10/2009, observing the provisions of the agricultural zoning of climatic risk;

b) the financing of projects for the expansion of industrial production already licensed by the responsible environmental body.

18 - The requirement of any form of banking reciprocity in the granting of rural credit subjects the financial institution and its administrators to the sanctions provided for in the legislation and regulation in force.

19 - For the granting of financing directed to the fishing activity, except for aquaculture (cultivation), the financial institution must require from the beneficiary the proof of registration in the General Registry of the Fishing Activity (RGP), and, when it comes to financing of extraction fishing vessels, the Prior Fishing Permission (PPP) must also be required, according to specific norms of the federal public administration body responsible for issuing these documents.

The granting of financing directed to cattle and buffalo farming
is conditioned on the beneficiary delivering to the financial institution, which must maintain it in the operation dossier for inspection purposes by the Central Bank of Brazil:

a) in working capital and investment operations intended for the acquisition of cattle and buffaloes:

sales invoice issued with a date equal to or later than the presentation of the
financing proposal, even when there is no legal provision for the seller to issue it; and

Animal Transit Guide (GTA), issued with a date equal to or later than the presentation of the financing proposal to the financial institution;

b) in other working capital operations: sanitary sheet, or equivalent document, of the benefited herd, issued by a competent state body within 1 (one) year prior to the presentation of the proposal.

21 - The choice of guarantees is at the free discretion of the financed and the financier, who must adjust them according to the nature and term of the credit, observing the specific legislation of each type and any specific requirement of the financing line.

Agricultural year is considered, for the purposes of this manual, the period from July 1st of each year to June 30th of the following year.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
Budget, Plan and Project - 2 (*)

1 - The granting of rural credit is subject to the presentation of a budget, plan or project, except in discount operations.

2 - The budget of application of resources must specify the type, value and time of all expenses and investments programmed.

3 - The budget must be prepared in current values, without any increase for adjustment.

4 - It is required that the budget relating to more than one enterprise or to the working capital of diverse crops separately records the expenses of each one, for analytical assessment of costs and control of applications.

5 - The budget of mixed crops must break down the funds of each one, grouping only the common expenses.

6 - The budget of livestock working capital must be prepared with special care, in order to disseminate the use of medicines, vaccines, antiparasitics, mineral salts, vitamins and other essential pesticides for the preservation of the health of the herds, increase in productivity and improvement of product standards.

7 - Expenses for transport and freight of inputs can be incorporated into the budget, for credit purposes.

8 - It is up to technical advisory at the portfolio level to examine the need for presentation of a plan or project, for the granting of rural credit, according to the complexity of the enterprise and its peculiarities.

9 - The technical advisory at the portfolio level and the technician responsible for elaborating the plan or project must verify the adequacy of the enterprise to the requirements of environmental protection.

10 - The plan or project must establish the duration of technical guidance, stipulating the most suitable times for its provision, according to the characteristics of the enterprise.

11 - The financial institution may require evaluation, prior inspection, measurement of crops or pasture, examination of records, feasibility study, plan or project whenever it deems necessary.

12 - The financial institution cannot alter the budget, plan or project without prior consent of the person responsible for its elaboration, but must refuse the financing, when, in its judgment, good banking technique or the norms applicable to the case are not observed.

It is incumbent upon the financial institution to ensure that:

a) the credit is timely, sufficient and adequate;

b) the borrower has or will timely have the own resources necessary for the global fulfillment of the budget, when the credit is intended to satisfy part of the expenses, in order to avoid parallelism of financings or future paralysis of the plan;

c) the enterprise will be conducted with observance of the norms regarding agroecological zoning and Ecological-Economic Zoning (ZEE).

14 - The installments of own resources required from the borrower must be applied proportionally and concomitantly with those of the credit, exceptionally admitting that the usage scheme establishes the advance of bank funds, when it is evident that the savings will only be available in a later phase, but in a timely manner and still within the validity of the operation.

It is prohibited to approve credit to cover budget items attended by another financial institution.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
Expenses - 3 (*)

The following expenses can be charged to the rural credit borrower:

a) financial remuneration;

b)
Tax on Credit, Exchange and Insurance Operations, or relating to Titles or Securities (IOF);

c) cost of service provision;

d) provided for in the Agricultural Activity Guarantee Program (Proagro);

e) rural insurance premium, observing the norms published by the National Council of Private Insurance;

f) monetary sanctions;

g) premiums in sales option contracts, of the same agricultural product object of the working capital or commercialization financing, on national commodities and futures exchanges, and fees and emoluments relating to these option contract operations.

2 - No other expense can be charged to the borrower, except the exact value of expenses incurred on his behalf by the financial institution or resulting from express legal provisions.

3 - The compliance bonuses granted in operations supported by resources from the constitutional financing funds apply exclusively to the installments paid up to the date of the respective contractual maturity.

4 - The assessment of the daily balances of rural credit operations is obtained through the application of the effective annual interest rate and, if applicable, of a rate representing annual variable remuneration, according to the calculation formula below:

where:

St = balance assessed on day t;

St-1 = balance assessed on the previous day (t-1);

Trvat (1) = annual variable remuneration rate (post-fixed), if applicable (TR, TJLP, etc.);

(1) when Trvat is expressed in a time unit other than a year, the equivalent annual rate must be calculated, previously, for application in the formula;

Teja = effective annual interest rate (pre-fixed);

DAC = number of days of the civil year (365 or 366 days);

Xt = payment made by the rural credit beneficiary on day t;

Yt = values released to the beneficiary on day t, eligible for financing and in conformity with the norms established in this manual.

For the purposes of the calculation referred to in item 4:

a) the day of release of the credit resources in the account linked to the operation must be excluded and the day of payment made by the beneficiary (partial or total) must be included;

b) the number of calendar days of the civil year must be considered, understood as the period from January 1st to December 31st;

c) five (5) decimal places must be considered, discarding the last three (3), in the final presentation of the value to be charged to the beneficiary or to be recorded in the account linked to the operation.

6 - The
Reference Rate (TR) is used in the manner of the regulation applicable to active and passive operations practiced within the scope of the financial market, issued by the Central Bank of Brazil, and the time and method of calculation of the fixed interest portion is at the free discretion of the financed and the financier.

The payment of the following services and products is freely negotiated between the
borrower, or group of borrowers, and the service/product provider, being prohibited their financing with controlled resources of rural credit, except when there is express authorization in the credit line or program:

a) technical assistance at the property or company level;

b) technical study (plan or project), evaluation, examination of records, expertise not linked to Proagro and prior inspection;

c) other third-party services.

8 - Expenses for registration, technical advisory at the portfolio level, and inspection or measurement of crops and pastures cannot be charged to the borrower, except for explicit permission contained in this manual.

The payment of service to third parties depends on:

a) evidence of its necessity;

b) prior authorization of the borrower.

10 -
The cost of the rural insurance premium can be capitalized in the account linked to the operation, on the date it is due.

Unless otherwise expressly provided, when due from financial institutions, monetary sanctions in rural credit consist of:

a) daily updating of the amounts in debt, based on the TR;

b) applying to the amounts updated in the manner of letter “a” an effective interest rate of 24% p.a. (twenty-four percent per year).

Expenses relating to premiums in sales option contracts, to fees and to
emoluments relating to these operations are eligible for financing under controlled resources, respecting the limit of 10% (ten percent) of the budgeted value for commercialization credit, per operation, and of R$50,000.00 (fifty thousand reais) per rural producer in each agricultural year, observing the following conditions:

a) a specific clause must be included in the credit instrument; and

b) the resources for the purpose will be debited in the graphic account of the financing and released only after confirmation of the purchase at the exchange.

The following items relating to the purchase of sales option contracts can be financed under controlled resources of rural credit, in the pre-commercialization modality:

a) the value of the premium;

b) ancillary expenses relating to the acquisition;

c) expenses with classification, storage and other expenses inherent to the phase immediately after the harvest of the product.

14 - The financing provided for in item 13 cannot exceed 6% (six percent) of the value of the contracted and unexpired options, being limited, in the case of the acquiring rural producer, to R$60,000.00 (sixty thousand reais) per beneficiary.

Financial institutions, prior to the contracting of rural credit operations, must inform the applicant of the Total Effective Cost of Rural Credit (CETCR), expressed in the form of an annual percentage rate, observing the following provisions:

a) only expenses authorized in this Section can be included in the CETCR;

b) the CETCR must be calculated considering the flows relating to the releases and payments provided for and include in its composition all expenses that will be charged to the borrower, even when these expenses are the object of financing;

c) in the CETCR calculation, floating rates, price indices or other remuneration references whose value changes during the term of the operation must not be considered, if used, which must be disclosed with the CETCR;

d) the CETCR will be disclosed with 2 (two) decimal places, using the Rounding Rules in Decimal Numbering (NBR5891), established by the Brazilian Association of Technical Standards (ABNT);

e) in the case of revolving rural credit operations or with simplified renewal, the CETCR must be presented to the borrower in each renewal of the operation;

f) in operations where there is provision for more than one date of resource release to the borrower, a rate must be calculated for each release, based on the initially scheduled timeline;

g) in the case of renegotiations of rural credit operations that entail alteration in financial charges, the CETCR must be recalculated and presented to the borrower in the formalization of the renegotiation;

h) the financial institution must ensure that the borrower, on the date of contracting, was aware of the flows considered in the CETCR calculation and that this annual percentage rate represents the conditions in force on the date of calculation;

i) the spreadsheet used for the CETCR calculation must be provided to the applicant prior to the contracting of the rural credit operation and must appear, in a prominent manner, in the respective contracts, specifying the flows considered and the remuneration references; and

j) in the advertising information of rural credit operations intended for the acquisition of goods and services, the CETCR corresponding to the offered conditions must be informed.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
Methodology for Calculating Rural Credit Interest Rates (TCR) - 4 (*)

1 -
This Section provides for the methodology for defining the interest rates applicable to rural credit operations carried out with controlled resources, except for operations with resources from the Constitutional Financing Funds, named: Rural Credit Interest Rates (TCR).

2 - The assessment of the outstanding balance of the rural credit operations referred to in item 1, through the application of the TCR, must observe the provisions in the MCR Section dealing with Expenses, for the purposes of assessing the respective daily balances.

The following methodologies for calculating the TCR applicable
to rural credit operations with controlled resources are established, except for operations with resources from the Constitutional Financing Funds:

The acronyms mentioned in the methodologies of this Section have the following definitions:

a)
TCRpost corresponds to the Post-fixed Rural Credit Interest Rate;

b)
TCRpre corresponds to the Pre-fixed Rural Credit Interest Rate;

c)
FAM corresponds to the Monetary Update Factor, assessed according to the methodology defined in this Section;

d)
FII corresponds to the Implicit Inflation Factor, assessed according to the methodology defined in this Section;

e)
FP corresponds to the Program Factor, to be defined in a resolution of the National Monetary Council (CMN);

f)
FA corresponds to the Adjustment Factor (FA), to be defined in a resolution of the CMN;

g)
Jm corresponds to the fixed interest rate calculated and disclosed in accordance with Articles 2 and 5 of Resolution No. 4,600, of September 25, 2017, and shall be valid from July 1 to June 30 of the following year; and

h) DU corresponds to the number of business days in the reference month of the calculation in which financial charges accrue.

5 -
For rural credit lines with controlled resources where interest rates are established in the TCRpré and TCRpós modalities, the borrower, at the time of contracting, must choose the modality to be used.

6 - The
TCRpós does not apply to rural credit operations contracted with rural savings resources.

7 - The
FAM will be calculated taking into account each business day of the credit operation's validity, using as reference the accumulated variation, for the same period, of the National Consumer Price Index Broad (IPCA), calculated and disclosed by the Brazilian Institute of Geography and Statistics Foundation (IBGE).

For the calculation of the FAM, the following formula will be used:

, in which:

a)
FAMm corresponds to the factor to be applied during the reference month “m”, expressed with 6 (six) decimal places and mathematical rounding;

b)
πm-1 corresponds to the percentage variation of the IPCA, calculated and disclosed by the IBGE, referring to the first month prior to the reference month “m”, expressed in unit form with 4 (four) decimal places;

c)
πm-2 corresponds to the percentage variation of the IPCA, calculated and disclosed by the IBGE, referring to the second month prior to the reference month “m”, expressed in unit form with 4 (four) decimal places;

d) ndup corresponds to the number of business days between day 1 (inclusive) and day 15 (exclusive) of the reference month “m”;

e) ndus corresponds to the number of business days between day 15 (inclusive) and the last day (inclusive) of the reference month “m”;

f) ndmp corresponds to the total number of business days between day 15 of the first month prior to the reference month “m” (inclusive) and day 15 of the month of reference “m” (exclusive); and

g) ndms corresponds to the total number of business days between day 15 of the reference month “m” (inclusive) and day 15 of the first month following the reference month “m” (exclusive).

For the purposes of calculating the FII, the following formula will be applied:

, in which:

a)
PRE corresponds to the simple arithmetic mean of the rates calculated each business day, relating to the 5 (five) year vertices of the term structure of the interest rate of the fixed-rate titles of the National Treasury, Treasury Notes (LTN) and National Treasury Notes, Series F (NTN-F), of the months of February, March and April of each year, expressed in annual form, considering the convention of 252 business days; and

b) Jm corresponds to the interest rate, according to item “g” of item 4.

10 - The term structure of the interest rate, referred to in item 9, for the PRE rates, will be estimated daily, during the period of calculation of the TCRpré, by means of a parametric model that uses a methodology of minimization of errors in relation to market prices of LTN and NTN-F.

11 - The data base for the calculation of the market prices mentioned in item 10 will be composed of definitive operations carried out in the secondary market, registered in the Special Settlement and Custody System (Selic), for all maturities of LTN and NTN-F available.

The following will be excluded from the data base, according to criteria of the
Central Bank of Brazil:

a) the LTN and NTN-F of a certain maturity date that systematically are not negotiated in the secondary market; and

b) the operations carried out with prices unreasonably divergent from the average market price.

13 -
If it is not possible to adequately estimate the price of LTN or NTN-F of one or more maturities due to insufficient negotiations in the secondary market, at the discretion of the Central Bank of Brazil, indicative prices that have broad acceptance as price references in the national financial market will be used.

14 - In the event of impossibility of the estimation mentioned in item 10, including due to insufficient information about negotiations in the secondary market and, simultaneously, absence of the indicative prices mentioned in item 13, estimated parameters based on the data of the immediately preceding business day can be adopted.

15 - The components FP, FA, Jm and FII, applied to each contract, will be kept constant during the entire validity of the rural credit operation.

16 - The
Central Bank of Brazil, in accordance with item I of Article 6 of Law No. 4,829, of November 5, 1965, must disclose the FII rate on the last business day of the month of April of each year, for validity from July 1 to June 30 of the following year.

17 -
The Central Bank of Brazil is authorized to issue norms and adopt the measures deemed necessary for the execution of the provisions of Resolution No. 4,664, of June 6, 2018.

The Program Factors applied in the definition of the effective interest rates of
which this Section treats are the following:

a) effective interest rate of 2.75% p.a.: -0.3770178;

b) effective interest rate of 4.0% p.a.: 0.0437610;

c) effective interest rate of 4.5% p.a.: 0.2120725;

d) effective interest rate of 5.0% p.a.: 0.3803840;

e) effective interest rate of 6.0% p.a.: 0.7170071;

f) effective interest rate of 7.0% p.a.: 1.0536301;

g) effective interest rate of 7.5% p.a.: 1.2219416.

In the absence of a CMN resolution establishing a specific value, the Adjustment Factor applied in the definition of the effective interest rates of which this
Section treats will be 0 (zero) for all operations.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
Methodology for Calculating Rural Interest Rates of the Constitutional Financing Funds (TRFC) - 4-A (*)

1 - This Section provides for the methodology for defining the interest rates applicable to rural credit operations carried out with resources from the Constitutional Financing Funds, named Rural Interest Rates of the Constitutional Financing Funds (TRFC).

2 - The calculation of the outstanding balance of the rural credit operations referred to in item 1, through the application of the TRFC, must observe the provisions of the MCR Section dealing with Expenses, for the purposes of calculating the respective daily balances.

The following methodologies for calculating the TRFC applicable to
rural credit operations carried out with resources from the Constitutional Financing Funds of the North (FNO), of the Northeast (FNE) and of the Center-West (FCO) are established, except those of the National Program for Strengthening Family Agriculture (Pronaf):

The abbreviations mentioned in the methodologies of which this Section treats have the
following definitions:

a)
TRFCpós corresponds to the Post-fixed Rural Interest Rate of the Constitutional Financing Funds;

b)
TRFCpré corresponds to the Fixed Rural Interest Rate of the Constitutional Financing Funds;

c)
FAM corresponds to the Monetary Update Factor, calculated according to the methodology defined in this Section;

d)
FII corresponds to the Implicit Inflation Factor, calculated according to the methodology defined in this Section;

e)
BA corresponds to the Compliance Bonus applied to financial charges, in the following manner:

eighty-five hundredths, provided that the debt installment is paid until the
date of its respective due date; and

one whole, in other cases;

f)
CDR corresponds to the Regional Imbalance Coefficient, referred to in § 9 of Article 1 and Article 1-D of Law No. 10,177, of January 12, 2001, and the most recent coefficient disclosed before the start of each agricultural year must be used, according to § 1 of Article 4 of Decree No. 9,291, of February 21, 2018, and which shall be valid from July 1 to June 30 of the following year;

g)
FP corresponds to the Program Factor, to be defined in a resolution of the Monetary Council (CMN);

h)
FA corresponds to the Adjustment Factor, to be defined in a resolution of the CMN;

i)
Jm corresponds to the fixed interest rate calculated and disclosed in accordance with Articles 2 and 5 of Resolution No. 4,600, of September 25, 2017, and which shall be valid from July 1 to June 30 of the following year; and

j) DU corresponds to the number of business days in the reference month of the calculation in which financial charges accrue.

5 - In the event of deviation in the application of resources, the borrower will lose, without prejudice to the judicial measures applicable, including of an executive nature, all and any benefits, especially those related to the compliance bonus.

6 -
For rural credit lines with controlled resources where interest rates are established in the TRFCpré and TRFCpós modalities, the borrower, at the time of contracting, must choose the modality to be used.

For the calculation of the FAM, the following formula will be used:

, in which:

a)
FAMm corresponds to the factor to be applied during the reference month “m”, expressed with 6 (six) decimal places and mathematical rounding;

b)
πm-1 corresponds to the percentage variation of the IPCA, calculated and disclosed by the IBGE, referring to the first month prior to the reference month m, expressed in unit form with 4 (four) decimal places;

c)
πm-2 corresponds to the percentage variation of the IPCA, calculated and disclosed by the IBGE, referring to the second month prior to the reference month m, expressed in unit form with 4 (four) decimal places;

d) ndup corresponds to the number of business days between day 1 (inclusive) and day 15 (exclusive) of the reference month “m”;

e) ndus corresponds to the number of business days between day 15 (inclusive) and the last day (inclusive) of the reference month “m”;

f) ndmp corresponds to the total number of business days between day 15 of the first month prior to the reference month m (inclusive) and day 15 of the month of reference m (exclusive); and

g) ndms corresponds to the total number of business days between day 15 of the reference month m (inclusive) and day 15 of the first month following the reference month m (exclusive).

9 - The components FP, FA, Jm, FII and CDR applied to each contract will be kept constant during the entire validity of the rural credit operation.

10 -
For the definition of interest rates for rural credit operations under the Pronaf, carried out with resources from the Constitutional Financing Funds of the North, Northeast and Center-West, the methodologies defined in this Section must be observed.

11 -
The Central Bank of Brazil is authorized to issue norms and adopt the measures deemed necessary for the execution of the provisions of Resolution No. 4,673, of June 26, 2018.

The Program Factors applied in the definition of the effective interest rates of
which this Section treats are the following:


Type of Operation	Annual Gross Revenue	Program Factors

Investment, including with working capital or associated	Up to R$16 million	0.3352245
from R$16 to R$90 million	0.4585643
Above R$90 million	0.5787417
Working capital or commercialization	Up to R$16 million	0.3731746
from R$16 to R$90 million	0.5091665
Above R$90 million	0.6419899
Forestry operations intended for financing conservation and environmental protection projects, recovery of degraded or altered areas, recovery of native vegetation and development of sustainable activities, and financing of projects for technological innovation in rural properties and for expansion, modernization, reform and construction of new warehouses	Any value	0.1707757

13 - The compliance bonus will be applied to the portion of the debt paid until the date of its respective due date, observing the methodology defined in this Section.

14 - The financial charges and the compliance bonus established in this Section do not apply to operations contracted under the Pronaf.

15 - The
Central Bank of Brazil, in accordance with item I of Article 6 of Law No. 4,829, of November 5, 1965, must disclose the Implicit Inflation Factor on the last business day of the month of April of each year, for validity from July 1 to June 30 of the following year.

In the absence of a CMN resolution establishing a specific value, the Adjustment Factor applied in the definition of the effective interest rates of which this
Section treats will be 0 (zero) for all operations.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
Utilization - 5 (*)

1 - Rural credit must be released directly to the borrower in a single lump sum or in installments, by cash or in a deposit account, according to the needs of the enterprise, and the uses must comply with a schedule of acquisitions and services.

It is lawful to release portions of the credit to cover expenses already incurred with the borrower's own resources, without constituting recovery of invested capital, when the following cumulative conditions are met:

a) that the relevant items constitute expenses that integrate the budget considered for the granting of credit;

b) that the expenses were incurred after the presentation of the proposal or, in the absence thereof, after the formalization of the credit.

3 - The financial institution cannot delay releases due to omission of measures within its scope or of technical assistance.

4 - The uses can be advanced or postponed, when there is justified convenience for the assisted enterprise.

5 - The credit formalized in a credit instrument with multiple issuers can be used by any of them individually, unless a special clause provides otherwise.

6 - It is incumbent upon the financial institution to open an account linked to each credit, except in the case of discounting.

7 - The portions of credit subject to different financial charges must be registered in distinct linked accounts.

8 - The uses, expenses and repayments must be registered in the linked account, even in the case of transfer to a deposit account.

The release by transfer to a deposit account is conditioned on:

a) it being provided for in the credit instrument;

b) it occurring at the time agreed for the use of each installment;

c) it not generating idle availability in the deposit account;

d) the borrower has at his disposal a checkbook or electronic fund transfer means equivalent for free movement of the deposit account.

Proper use of resources is proven by verifying that the
enterprise was correctly and timely executed, and the producer must:

a) retain proof of application in the acquisition of inputs and payment of labor, to present them to the financier, when requested;

b) deliver to the financier, within 30 (thirty) days from the release, the documents proving the acquisition of vehicles, machinery, equipment and animals.

11 - Regarding the proofs referred to in item “a” of item 10, in operations contracted within the scope of the National Program for Strengthening Family Agriculture (Pronaf), their presentation is dispensed with when it concerns inputs of own production or own labor of the family unit, provided that it is provided for in the project or credit proposal of the financed enterprise.

12 - The irregular application or diversion of portions of the credit subjects the borrower to its repayment, with the pecuniary sanctions agreed upon, counted from the date of its release, without prejudice to other sanctions provided for in this Manual and in the applicable legislation.

The release of portions referring to fertilizers, correctives, agricultural pesticides or seeds inspected or certified, acquired up to 180 (one hundred and eighty) days before the formalization of the credit and intended for the financed crop, is admitted, provided that the acquisition of the products, proven by invoice, is compatible with the financed enterprise.

TITLE:
RURAL CREDIT

CHAPTER:
Basic Conditions - 2

SECTION:
Reimbursement - 6 (*)

1 - The term and schedule of reimbursement must be established based on the beneficiary's payment capacity, so that the due dates coincide with the normal times of obtaining the yields of the assisted activity.

2 - Maturity is understood as the period in which the beneficiary is exempt from amortizations, due to lack of income or by technical recommendation to apply them to the enterprise.

3 - The sum of the maturity with the reimbursement period cannot exceed the maximum term provided for in the credit.

Regardless of consultation with the Central Bank of Brazil, the extension of the debt is authorized, at the same financial charges previously agreed in the credit instrument, provided that the borrower's inability to pay is proven, as a result of:

a) difficulty in marketing the products;

b) crop failure, due to adverse factors;

c) eventual occurrences detrimental to the development of the enterprises.

The provisions of item 4:

a) are applicable to financings contracted with financial charge equalization by the National Treasury (TN), provided that the operations are previously reclassified, by the financial institution, to mandatory resources or another non-equalizable source;

b) is not applicable:

to marketing credits subject to specific rules applicable to the Minimum Price Guarantee Policy (PGPM);

II - to financings with resources from funds and development programs, which are subject to specific rules.

6 - The retention of stocks of goods not delivered to cooperative members by the cooperative does not constitute a cause for extension.

The financial institution may renegotiate an ongoing irregular rural credit operation, except for deviation of purpose, provided that:

a) the operation is reclassified to a source of free resources;

b) the operation is not counted for the purposes of complying with any form of direction;

c) the provisions of MCR 6-1-14 are observed.

8 - The extension of installments backed by resources from funds and development programs and already remitted to the National Treasury is charged to the financial institution's own resources.

9 - Delay in fulfilling any pecuniary obligation subjects the borrower to the payment of sanctions on the agreed bases, counted from the date of default.

The rural working capital credit operation pending administrative measures within the scope of the Agricultural Activity Guarantee Program (Proagro) must be extended for a period of up to 180 (one hundred and eighty) days from the due date, provided that:

a) it is in normal course;

b) the communication of losses and the appeal to the Special Appeals Commission (CER) have been submitted timely.

TITLE:
RURAL CREDIT

CHAPTER:
Operations - 3

SECTION:
Formalization - 1 (*)

Rural credit can be formalized in the titles below, observing the provisions of Decree-Law No. 167, of February 14, 1967, and Law No. 10,931, of August 2, 2004:

a)
Rural Pledge Note (CRP);

b)
Rural Mortgage Note (CRH);

c)
Rural Pledge and Mortgage Note (CRPH);

d)
Rural Credit Note (NCR);

e) Bank Credit Note (CCB).

2 - The formalization of rural credit by contract is optional in the case of peculiarities unsuitable for adaptation to the titles described in item 1.

Credits can be formalized in the same instrument or separately, at the discretion of the financier:

a) for different purposes;

b) relating to the normal financing limits and the excesses.

The credit titles must be used according to the nature of the guarantees, namely:

a) with real guarantee:

pledge: CRP;

mortgage: CRH;

III

pledge and mortgage: CRPH;

b) with or without real guarantee or suretyship: CCB and contract;

c) without real guarantee:
NCR.

5 - The credit instruments can be amended, rectified or ratified by means of additional mentions or addendums.

The drawing up of an addendum or additional mention to the credit instruments is dispensed with for:

a) to effectuate extension provided for in the credit instrument, under the agreed conditions;

b) to reduce the charges of the issuer, provided that the advantage is formally communicated to him;

c) to release goods linked as collateral.

It is incumbent upon the financial institution, in financings contracted with controlled resources:

a) to inform the borrower about its rural credit operations recorded in the Rural Credit and Proagro Operations System (Sicor), including those contracted through agricultural production cooperatives to serve members and for financing activities explored under integration regime;

b) to deliver to the borrower, when requested, a copy of the information referred to in item “a”;

c) to provide the borrower with the necessary clarifications on:

the concepts of controlled resources of rural credit and of agricultural year;

the limits of rural credit and the borrower's situation in relation to them; and

III

the occurrences that constitute irregularity in the application of rural credit resources;

d) to include a clause, in the credit instrument, or collect a declaration from the borrower, in accordance with item 8; and

e) to include, in the operation dossier, the declaration referred to in item “d”, when collected.

In the clause or declaration referred to in item 7, the borrower must confirm:

a) having taken note of the existence of other financings “in force” with controlled resources, in the same agricultural year, in any financial institution integrated into the National Rural Credit System (SNCR), with the information of the values already financed, if applicable;

b) having received from the financial institution the clarifications referred to in item 7; and

c) having knowledge that any false declaration made to the financial institution implies substitution, from the date of contracting, of the agreed interest rate by a market rate, without prejudice to other sanctions and penalties provided for in the legislation, including with regard to the obligation of the financial institution to communicate indications of a crime of public criminal action or tax fraud.

TITLE:
RURAL CREDIT

CHAPTER:
Operations - 3

SECTION:
Working Capital Credits - 2 (*)

1 - Rural working capital is classified as agricultural and livestock.

Working capital credit can be intended to meet normal expenses:

a) of the production cycle of periodic crops, the off-season of permanent crops or the extraction of spontaneous or cultivated vegetable products;

b) of livestock exploitation.

It is admitted to finance as working capital items:

a) agricultural:

expenses for sugarcane cutting and ratoon management, encompassing cultural practices,
harvesting and partial replanting;

advance purchase of inputs;

III

acquisition of silos (bags), limited to 5% (five percent) of the value of
working capital;

b) livestock:

acquisition of animals for rearing and fattening, when it concerns an
enterprise managed by an independent rural producer;

acquisition of inputs, at any time of the year;

c) agricultural and livestock: expenses for the acquisition of inputs for the restoration and recovery of legal reserve areas and permanent preservation areas, including pest and invasive species control, maintenance and conduct of natural regeneration of native species and fire prevention.

4 - For the purpose of working capital credit, apiculture, poultry farming, pisciculture, sericulture, aquaculture and commercial fishing are considered livestock exploitation.

The following credits are not included in the calculation of the rural working capital limit with controlled resources:

a) with resources from the regional financing constitutional funds; and

b) with resources raised through the issuance of Letters of Credit of Agribusiness.

Subject to the limit of rural working capital with controlled resources, the value of
the working capital credit may be increased by up to 10% (ten percent), provided that:

a) the additional value of the working capital credit is used for the financing referred to in item “c” of item 3;

b) the plan or project of the financing referred to in item “a” is presented separately from the working capital for the productive activity;

c) the beneficiary presents the Rural Environmental Registry (CAR) validated by the competent body in the respective federative unit of the rural property where the working capital financing project is carried out.

7 - The beneficiary may obtain financing, under controlled resources, for working capital of more than one agricultural product and for livestock working capital, provided that the value of the financing does not exceed the limit per producer.

8 - Up to 15% (fifteen percent) of the total budget value, when intended for small and medium producers, may include funds for small expenses conceived as investment, provided they can be settled with the product of the exploitation in the same cycle, such as: repairs or reforms of production assets and installations, acquisition of draft animals, clearing, stumping and similar, including acquisition, transport, application and incorporation of agricultural lime.

9 - It is admitted that a credit cooperative, with uncontrolled resources of rural credit, grants isolated working capital financing to a small producer, for the purchase of medicines, clothing, clothes, household utilities and satisfaction of other fundamental expenses for family well-being.

In financing of working capital items for the advance purchase of inputs
the following conditions must be observed:

a) the credit instrument must contain the identification of the crops to which the acquired inputs are destined, specifying the corresponding value for each one;

b) the value of the financing must be computed, for the purpose of verifying the credit limit per beneficiary, in the agricultural year in which the operation is contracted;

c) the financing referred to in the caput must be computed for the purpose of defining the maximum term of the operation.

11 - It is prohibited to approve credit to meet expenses whose times or cycles of realization have already elapsed, however, it is admitted to consider as own resources of the borrower the expenses already incurred.

12 - The budget of livestock working capital may include funds for cleaning and restoration of pastures, haymaking, silage and formation of periodic forages of cycle not exceeding 2 (two) years, for consumption of own herd.

The maximum terms for the repayment of working capital credits with controlled resources, except those of the constitutional funds, are as follows:

a) agricultural:

3 (three) years for saffron and royal palm (heart of palm) crops;

2 (two) years for biennial crops;

III

14 (fourteen) months for permanent crops;

1 (one) year for other crops;

b) livestock:

6 (six) months, in financing for the acquisition of cattle and buffalo for
fattening in confinement regime;

2 (two) years when the financing involves the acquisition of cattle and
buffalo for rearing and fattening in extensive regime and the credit covers both purposes in the same operation;

III - 1 (one) year in other financings.

14 - The maturity of the agricultural working capital credit must be fixed for a term not exceeding 60 (sixty) days after the end of the harvest, except as provided in item 15.

The extension and reprogramming of the repayment of credit operations intended for
agricultural working capital is admitted, observing the following conditions:

a) the borrower must request the extension after the harvest and until the date fixed for maturity;

b) the repayment must be agreed upon observing the term adequate to the commercialization of the product and the revenue flow of the beneficiary;

c) the producer must present proof that the product is stored, maintaining it as guarantee for the financing;

d) in case of operations classified with controlled resource source, reclassification to uncontrolled resources must be performed.

16 - The operations intended for the financing of milk working capital may be agreed with provision for repayment in monthly installments, equal and successive, the first maturing up to 90 (ninety) days after the release of the financing.

17 - The pledge of the working capital financing must link only the production expected for the financed area, in order to allow the producer to obtain marketing credit for the production of the same harvest harvested in an unfinanced area.

18 - If the commercialization of the product linked as guarantee for the financing occurs before the agreed maturity date, the outstanding balance of the working capital financing must be immediately amortized or settled by the borrower, proportionally to the volume of the product commercialized.

It is admitted to contract working capital financing with provision for simplified renewal, observing the provisions of this Section and the following specific conditions:

a) term: those provided in this Section, with automatic renewal from the day following the payment of the credit referring to the previous harvest;

b) each renewal, the financial institution is obliged to require from the borrower, at least, simplified budget containing the location of the enterprise, the activities for the new cycle and the disbursement schedule, or the authorization for the maintenance of the original location, activity and budget, making, in all cases, the due registration in the System of Rural Credit and Proagro Operations (Sicor).

In the case of activities explored successively, whose harvest periods are
not clearly defined, such as horticultural products, swine farming and poultry farming, the maturity of the working capital credit is limited to 1 (one) year, the financial institution must, for this purpose:

a) establish the waiver of periodic amortizations during the validity of the loan, provided that, at the end of each production cycle, the acquisitions of inputs for the subsequent stage are renewed, according to the budget;

b) monitor the assisted activity, in each cycle, to certify the effective employment of resources for the purposes provided.

TITLE:
RURAL CREDIT

CHAPTER:
Operations - 3

SECTION:
Investment Credits - 3 (*)

1 -
Rural investment credit is classified as financing with predominance of funds for fixed and semi-fixed investments in goods and services related to the agribusiness activity, even if the budget allocates resources for working capital.

The following fixed investments are financeable:

a) construction, reform or expansion of improvements and permanent installations;

b) acquisition of machines and equipment with probable useful life superior to 5 (five) years;

c) irrigation, damming, drainage works;

d) afforestation, reforestation, clearing and stumping;

e) formation of permanent crops;

f) formation or recovery of pastures;

g) rural electrification and telephony;

h) protection, correction and soil recovery, including the acquisition, transport and application of the inputs for these purposes.

The following semi-fixed investments are financeable:

a) acquisition of animals for breeding or rearing;

b) installations, machines and equipment with probable useful life not superior to 5 (five) years;

c) acquisition of vehicles, tractors, combines, implements, vessels and aircraft;

d) acquisition of equipment used in the measurement of crops.

The budget or investment plan may provide funds for:

a) expenses with project or plan for working capital and administration;

b) recovery or reform of machines, tractors, vessels, vehicles and equipment, as well as acquisition of accessories or spare parts, unless resulting from a loss covered by insurance;

c) the process of georeferencing of rural properties;

d) finance the environmental regularization of the rural property, which may include costs related to registration in the Rural Environmental Registry (CAR) and implementation of the measures provided in the commitment term signed by the producer upon adherence to the Environmental Regularization Program (PRA), including the acquisition of Environmental Reserve Quotas (CRA), provided that the economic viability of the activities developed on the property for payment of the credit is defined in the technical project.

5 - The machines, tractors, vehicles, vessels, aircraft, equipment and implements financed must be intended specifically for the agribusiness activity, observed that the investment credit for acquisition of these goods, in an isolated or not manner, can only be granted for new items produced in Brazil that are on the list of Accredited Manufacturers Informatized (CFI) of the National Bank for Economic and Social Development (BNDES) and meet the parameters related to the minimum nationalization indices defined in BNDES regulations applicable to Finame Agrícola, except when there is no national manufacturing similar.

The following types of vehicles are financeable:

a) trucks, including refrigerated, insulated or bulk carriers;

b) pickup trucks for cargo, except double-cab vehicles, observed that the financing:

will only be granted to beneficiaries who develop activities of
horticulture and fruit farming, observed that, in the calculation of the payment capacity, specified in the technical project, it must be proven that, at least, 50% (fifty percent) of the revenue generated by the production unit has origin in at least one of these activities;

is conditioned on the presentation of the invoice regarding the acquisition of the good
issued by the manufacturer;

c) motorcycles adequate to rural conditions, when technically and economically recommended for the development of the rural activity.

7 - The credit for the acquisition of trucks is conditioned on proof of the possibility of its full employment in the agribusiness activities of the buyer during, at least, 120 (one hundred and twenty) days per year.

8 - It is prohibited to finance a vehicle that is classified as a passenger car, by type or finish.

Investment credit is conceived as credit intended for:

a) foundation or expansion of sugarcane crops, comprising the preliminary works, planting and subsequent treatments until the first harvest (sugarcane plant);

b) renewal of sugarcane crops in areas previously occupied by sugarcane fields with exhausted productive cycle (sugarcane plant, ratoon and second ratoon), comprising all necessary expenses until the first harvest, according to item “a”.

The beneficiary of credit for investment related to livestock must:

a) adopt prophylactic and sanitary measures in defense of the herds;

b) mark the animals, observing legal norms.

The financing is subject to the following maximum terms, which include the grace period:

a) fixed investment: 12 (twelve) years;

b) semi-fixed investment: 6 (six) years, except when it concerns acquisition of animals for breeding or rearing, whose term will be up to 5 (five) years, including up to 12 (twelve) months of grace period.

It is admitted that financial institutions authorized to capture rural savings use the resources of the referred source for application in rural investment credit operations under the conditions current for programs with BNDES resources, with the Ministry of Economy defining the limits and methodology for equalization of these resources, based on the limits proposed by the Ministry of Agriculture, Livestock and Supply (Mapa) per program, observed the provisions of art. 4 of Law No. 8,427, of May 27, 1992.

TITLE:
RURAL CREDIT

CHAPTER:
Operations - 3

SECTION:
Marketing Credits - 4 (*)

1 - The marketing credit has the objective of making available to the rural producer or to its agricultural cooperatives the resources necessary for the commercialization of its products in the market.

The marketing credit comprises:

a) pre-commercialization;

b) discounting of Rural Bill of Exchange (DR) and Rural Promissory Note (NPR);

c) loans to cooperatives for advances to members, on account of products delivered for sale, observing the commercialization prices;

d)
Special Financing for Storage of Agricultural and Livestock Products (FEE);

e) price protection and/or price equalization risk premium financing;

f) financing for guarantee of prices to the producer (FGPP).

The pre-commercialization credit:

a) consists of the supply of resources to rural producers or to their cooperatives to meet the expenses inherent to the phase immediate to the harvest of own production or of members;

b) aims to allow the sale of production without precipitations harmful to the interests of the producer, in the best markets, but cannot be used to favor speculative retention of goods, notably in case of shortage of food products for internal supply;

c) can be granted in isolation or as an extension of working capital;

d) has a maximum term of 240 (two hundred and forty) days.

4 - The following may be object of discounting DR and NPR originating from the sale or delivery of production proven to be own, even when processed or industrialized by the rural producer or by its cooperative.

5 - The endorsee or holder of DR or NPR has no right of recourse against the first endorser and its guarantors.

6 - The guarantees given in the discounting of DR or NPR are null, unless provided by the individuals participating in the issuing company, by this or by other legal entities.

7 - The provisions of items 5 and 6 do not apply to transactions carried out between rural producers or between these and their cooperatives.

Regarding the discounting of titles:

a) it is prohibited to discount a title originating from an advance purchase and sale contract, with promise of future delivery of the goods;

b) the following maximum terms must be observed, counted from issuance to maturity:

up to 90 (ninety) days, when referring to cotton in lint, beans and cowpeas;

up to 180 (one hundred and eighty) days, when referring to açaí, garlic, peanut, rice, natural rubber, coffee, Brazil nut, silk cocoon, cassava flour, cassava starch, gum and tapioca, sunflower, guarana, jute or embonecated malva, castor bean in pod, corn, popcorn corn, sisal, soybean, sorghum and seeds;

III

up to 240 (two hundred and forty) days, when referring to cotton in fiber, cottonseed, cashew nut, carnauba wax and ceriferous powder and milk;

IV - up to 120 (one hundred and twenty) days, when referring to other agribusiness products.

9 - In the case of discounting of DR and NPR related to products linked to guarantee of working capital or storage financing, the financial institution must transfer the released resources to the creditor of the respective operation, up to the value necessary for the settlement of the respective outstanding balance.

The operations of discounting DR and NPR representative of the commercialization of in natura milk for agroindustry, and the granting of credits to
cooperatives for advance to members on account of milk delivered for sale, except those under the resources of the regional financing constitutional funds, are restricted to:

a) volume corresponding to up to 20% (twenty percent) of the reception capacity of the respective agroindustry, per agricultural year;

b) term of up to 240
(two hundred and forty) days.

11 - The FEE is intended to finance the storage and conservation of agricultural and livestock products, aiming at commercialization in better market conditions, with beneficiaries being the rural producers and their agricultural production cooperatives, as well as seed producers registered in the federal public administration body responsible.

12 - The FEE is based on the minimum price of products supported by the Minimum Price Guarantee Policy (PGPM) and the reference price of products contained in the tables at the end of this Section, with premiums and discounts defined by the National Company for Supply (Conab) according to the type and quality of the product.

13 - It is prohibited to grant the FEE for the product that has been object of working capital financing with extension and reprogramming of the maturity of the operation.

14 - The limit of the credit, per borrower for FEE operations and discounting of DR and NPR, must not consider the marketing credits granted with resources from the regional financing constitutional funds.

15 - The beneficiary may contract FEE for more than one product, provided that the limit per producer is respected for each agricultural year.

16 - The sum of the credits for storage with controlled resources is subject to the limit of marketing credit with controlled resources.

Without prejudice to the possibility of the financial institution anticipating the realization of the financing, the FEE intended for products classified as seed is limited to 80% (eighty percent) of the quantity identified in the conformity term or seed certificate, observed also the following:

a) the borrower has a term of up to 150 (one hundred and fifty) days to perform the identification of the grain or kernel as seed;

b) the portion of the value of the operation proportional to the quantity not identified as seed in the manner of item “a” must be downgraded;

c) the reference price of the financing must be based, at least, on the minimum price of products supported by the PGPM or those defined in the tables at the end of item 26.

18 - It is prohibited to grant FEE for the activities of broiler poultry farming, pisciculture and swine farming explored under partnership regime.

19 - It is admitted the transfer of ownership/responsibility in FEE operations of cotton, from producers to cotton processing industries or fiber consumers, when the respective parties decide to negotiate the linked product.

20 - Although freely agreed upon between the parties, the guarantees of the FEE must incorporate the pledge of the stored products or their derivatives.

The balance of the FEE operation must be amortized or settled upon commercialization, partial or total, of the product linked in pledge, allowing the maintenance of the normal course of the operation, provided that the correspondence of the value of the guarantee in relation to the outstanding balance of the financing is preserved, by substituting the pledged product by:

a) another of the same species or by titles representative of the sale of these goods, observed that the maturity terms of these titles cannot be superior to the maturity of the respective FEE;

b) cotton in fiber, in operations that have cotton in lint as object;

c) derivatives of the product in natura object of the financing.

22 - In the case of the FEE related to products linked to working capital financing, the financial institution must transfer the released resources to the creditor of the working capital operation, up to the value necessary for the settlement of the respective outstanding balance.

23 - The FEE for grape derivatives granted to rural producers is conditioned on the presentation of a formalized contract between the producer and cooperative or industry for processing of the grape and storage of its derivatives.

The FEE for industrial grape is subject, in addition to the general rules of rural credit, to the following conditions:

a) maximum maturity: December 31 of the year subsequent to the contracting;

b) monthly amortizations of:

15% (fifteen percent), in the months of May to August of the year subsequent to the contracting;

II - 10% (ten percent), in the months of September to December of the year subsequent to the contracting.

FEE operations related to products and seeds are subject to the following specific conditions:

a) maximum maturity terms:

90
(ninety) days for beans, cowpeas and cotton in lint, being that, for the latter, the term may be extended by another 150 (one hundred and fifty) days, provided that there is substitution by cotton in fiber;

180 (one hundred and eighty) days for açaí, rice, natural rubber, coffee, Brazil nut, cassava flour, cassava starch, gum and tapioca, jute and embonecated and pressed malva, corn, soybean, sorghum, sisal, wheat, seeds and the products contained in the tables of item 26;

III

240 (two hundred and forty) days for cotton in fiber, cottonseed, carnauba wax and ceriferous powder and milk;

120 (one hundred and twenty) days for andiroba (kernel), babassu (kernel), baru (fruit), cocoa (kernel), cultivated cocoa (kernel), juçara (fruit), orange, macauba (fruit), mangaba (fruit), pequi (fruit), piaçava (fiber), pine nut (fruit), and umbu (fruit);

b) at the discretion of the financial institution, intermediate amortizations may be established;

c) the operations must refer to own production obtained in the current harvest, observing the regions or federative units and the period of validity of the minimum prices, according to ordinance of the federal public administration body responsible;

d) the extension of the initial or single maturity term is admitted, for up to 60 (sixty) days after the harvest of the respective product, in the case of FEE of seeds of cotton, rice, corn, soybean, sorghum, wheat, peanut, barley and triticale against the presentation of proof of sale on credit of harvest;

e) the minimum prices for each harvest and the respective areas of coverage are defined by deliberation of the National Monetary Council (CMN) and published by means of ordinance of the federal public administration body responsible.

The operations under the FEE, of products not part of the PGPM, must observe the following reference values from the agricultural year 2020/2021:


a) Winter Crops - 2020/2021 Harvest
I - Grains
Products	Supported Regions and States	Unit	Basic Type/Class	Reference Prices (R$/unit)

Garlic	South	kg	-	7.13
	Center-West, Northeast and Southeast		6.06
Oats	South	60 kg	1	36.30
Canola	Center-West, Southeast and South	Unique	58.43
Barley		36.08
Sunflower		57.12
Triticale		25.28

II - Seeds (1)
Products	Supported Regions and States	Unit	Basic Type/Class	Reference Prices (R$/unit)

Oats	South	kg	Unique	1.03
Barley	Center-West, Southeast and South		0.94
Sunflower		1.32
Triticale		0.72
(1) Genetic, basic and certified S1 and S2, in accordance with article 35 of Decree No. 5,153, of July 23, 2004, which regulated Law No. 10,711, of August 5, 2003.

b) Summer and Regional Crops - 2020/2021 and 2021 Harvests
I - Grains and grasses
Products	Supported Regions and States	Unit	Basic Type/Class	Reference Prices (R$/unit)

Peanut	Brazil	25 kg	-	30.41
Cashew nut	Northeast and North	kg	Unique	3.98
Silk cocoon	PR and SP	15% Silk	17.72
Guarana	Center-West and North	1	18.35
	Northeast		10.70
Castor bean (berry)	Brazil	60 kg	Unique	108.21
Popcorn	Center-West, Southeast, South and BA-South	kg	-	0.65

II - Seeds (1)
Products	Supported Regions and States	Unit	Basic Type/Class	Reference Prices (R$/unit)

Peanut	Brazil	kg	-	4.58
(1) Genetic, basic and certified S1 and S2, in accordance with article 35 of Decree No. 5,153, of July 23, 2004, which regulated Law No. 10,711, of August 5, 2003.

c) Other Products
Products	Supported Regions and States	Unit	Basic Type/Class	Reference Prices (R$/unit)

Pineapple	Brazil	kg	-	0.64
Acerola		0.91
Banana		0.75
Guava		0.47
Sheep wool
- Ideal and Merino		23.00
- Corriedale		10.35
- Romney and crosses		6.33
- Others		4.60
Apple		0.77
Papaya		0.37
Mango		1.21
Passion fruit		1.89
Honey		8.50
Strawberry		3.05
Peach		0.70
Live pig		4.15
Industrial tomato		0.21

TITLE:
RURAL CREDIT

CHAPTER:
Operations - 3

SECTION:
Industrialization Credits - 5 (*)

Industrialization credit is intended for:

a) to the rural producer for industrialization of agricultural products on their rural property, provided that, at least 50% (fifty percent) of the production to be benefited or processed is own production; and

b) to cooperatives, as defined in the Industrialization section of chapter of this manual that governs the granting of Credits to Agricultural Production Cooperatives, provided that, at least 50% (fifty percent) of the production to be benefited or processed is own production or of members.

Financing is admitted as industrialization items:

a) benefiting, such as cleaning, drying, pasteurization, refrigeration, peeling and standardization of products, among others;

b) purchase of inputs, such as packaging, labels, condiments, preservatives, sweeteners, among others;

c) expenses with labor, maintenance and conservation of equipment and acquisition of secondary materials indispensable to industrial processing; and

d) insurance and taxes related to the industrialization process.

3 - The repayment of industrialization credit must be adequate to the marketing cycle of the products resulting from the process, respecting the maximum term of 2 (two) years for grapes and 1 (one) year for other products.

The credit limit for industrialization operations should not consider
industrialization credits granted with resources from the regional financing constitutional funds.

TITLE:
RURAL CREDIT

CHAPTER:
Operations - 3

SECTION:
Transitional Norms - 7 (*)

Exceptionally, in the 2020/2021 agricultural year, the contracting of
Special Financing for Storage of Agricultural Products (FEE) is authorized, for the commercialization of sugarcane, observing the reference prices of R$94.08/t (ninety-four reais and eight cents per ton) for the North and Northeast regions, and R$78.82/t (seventy-eight reais and eighty-two cents per ton) for the Center-West, Southeast and South regions, and the following specific conditions when it comes to financing backed by controlled resources:

a) credit limit: those established in the table that sets the credit limit, per borrower, for FEE operations and for Discount of Rural Bill of Exchange (DR) and of Rural Promissory Note (NPR);

b) financial charges: those provided for in the table that provides for interest rates for rural credit;

c) repayment term: up to 240 (two hundred and forty) days;

d) guarantees: freely agreed between the parties, allowing the substitution of pledge by ethanol and sugar or any other guarantee accepted by the financial institution;

e) presentation of a formal contract between the beneficiary and the mill for the processing of sugarcane and storage of its derivatives.

Exceptionally, in the 2020/2021 agricultural year, it is admitted that the contracting of
FEE for the commercialization of products from commercial capture fishing and aquaculture, observe the following specific conditions:

a) repayment term: up to 240 (two hundred and forty) days;

b) guarantees: freely agreed between the parties, allowing the substitution of pledge by any other guarantee accepted by the financial institution;

c) presentation of a formal contract between the beneficiary and the company of conservation, benefiting, transformation or industrialization of fishery products and of aquaculture products for the storage of the product or its derivatives.

Resolution CMN No. 4,883 — Consolidation of Provisions in Chapters 1, 2 and 3 of the Rural Credit Manual (MCR) Regarding Principles, Basic Concepts and Operations Applicable to Rural Credit

Lineage: Superseded

Timeline