Rural producers

Right to extend debts contracted for rural production and/or cancellation of renegotiations promoted by financial institutions that abuse the application of interest applicable on the renegotiated debt.

It is possible to extend the rural credit operation signed with banks or credit cooperatives, backed by mandatory or free resources, formalized via rural bills as long as the resource is intended for investment in the rural sector.

In order to achieve this objective, the Rural Producer must prove the occurrence of causes that are independent of their will that resulted in the partial or total failure of the respective harvest invested.

It is also necessary to demonstrate that their payment capacity has been temporarily compromised, showing the long-term viability of the business.

Thus, once the applicable legal proceedings have been complied with, it is entirely possible to obtain an extension of rural credit operations.

It is important to highlight that, often, banks or credit cooperatives, upon receiving the rural producer who is on the verge of defaulting on the initially agreed payments, propose the renegotiation of the operations, replacing the initially agreed credit bill (Rural Credit Bill) with the Bank Credit Bill.

This provision exempts the financial institution from complying with the benefits contained in the rule that provides for the rural credit bill, increasing the remunerative interest, as well as the interest for late payment, thus increasing the amount owed by the rural producer and their respective guarantors or, even, the rural property.

In view of this, our team is available to represent rural producers who find themselves in such a situation, so that their rights guaranteed by law, as well as their assets, are preserved.