Chamber approves proposal that validates endorsement on rural credit ballot

In a conclusive decision, the Constitution, Justice and Citizenship Committee of the Chamber of Deputies approved a proposal that validates the endorsement given in the rural credit card. Unless there is an appeal for analysis by the Plenary, the text will be sent directly to the Federal Senate.

Bill 1802/15, originally proposed by former deputy Carlos Bezerra, was presented with a vision opposite to the replacement of the Agriculture, Livestock, Supply and Rural Development Committee. The initial objective of the project was to decree the nullity of the endorsement given in a rural credit card, an idea contrary to the approved text.

At the center of this controversy is the interpretation of the provision of Decree-Law 167/67, which states that "any other guarantees, real or personal, are also void, except when provided by natural persons participating in the issuing company, by it or by other legal entities ". The understanding of this device generated disputes in the Superior Court of Justice (STJ), with decisions varying between considering the nullity of the guarantee only for the rural promissory note and the rural duplicate, and other judgments that extend this nullity also to the rural credit note.

According to former deputy Celso Maldaner, rapporteur on the Agriculture Committee, the proposal aims to pacify the jurisprudential discussion on the validity of the endorsement affixed to rural credit cards. Maldaner points out that, when asked to honor rural credit operations, many guarantors claim the nullity of the guarantee based on Decree-Law 167/67, which does not clearly specify which instruments it applies to.