Post by account_disabled on Mar 13, 2024 8:49:25 GMT
Rural producers who are unable to pay their debt due to the harvest failure that occurred in the 2005-2012 harvest year in their region, hit by drought, have the right to renegotiate their debt with the financial institution. This is because, according to the Superior Court of Justice, the extension of debt originating from rural credit does not constitute an option of the financial institution, but the right of the debtor under the terms of the law.
For this reason, the Court of Justice of Rio Grande do Sul has been condemning financial institutions to renew contracts for farmers' rural operations, under the terms governed by Central Bank resolutions, whose debts were being judicially enforced.
Thus, as a result of the B2B Lead frustration of the harvest whose planting took place in the period 2005-2012, due to drought, which resulted in an emergency situation or public calamity recognized by municipal and/or state decree, as well as fulfilling the requirements required by the resolutions issued by the Central Bank, it is the duty of the financial institution to promote the renegotiation of debt arising from rural credit.
In this sense, the securitization of rural activity financing, with the extension of debts, is a right that belongs to rural producers and must be granted as long as the requirements set out in the normative text are met.
The understanding of the higher courts has the power to guarantee the social function of the contract, as food production constitutes a basic priority of government policies. Therefore, its financing is of interest to the whole of society. In other words, “State regulation (intervention) is strictly necessary and indispensable for normal supply and, therefore, food security”[1].
In view of the drought that hit the states of Rio Grande do Sul, Santa Catarina and Paraná in the years 2004 to 2012, the rural producer who obtained reduction or losses, and whose municipality has declared a state of public calamity and emergency, has the right to renegotiate your debt. Along these lines, rural producers who have an agricultural financing contract have the right to extend their debt with reduced interest.
Stay tuned, rural producer, as more than 39 municipalities in the state of Rio Grande do Sul have declared a public calamity and emergency due to drought this year.
