The Superior Court of Justice has recently defined that Rural Product Bonds are absolutely unseizable, in view of the social function inherent to these types of credit instruments.
The discussion took place in the judgment of Special Appeal 1.327.643/RS, when the Court of Justice of Rio Grande do Sul rejected the unseizability foreseen in articles 69 of Decree 167/67 and 18 of Law 8929/94, to the detriment of the satisfaction of a labor credit due to its alimentary nature.
In the beginning of the trial, Reporting Justice Luis Felipe Salomão argued that the creation of Rural Notes sought to develop and encourage agribusiness in such a way as to facilitate the circulation of rural products.
Next, the Rapporteur pointed out the existence of previous judgments of the Superior Court of Justice itself in which the unseizability of products pledged as collateral through a Rural Credit was relativized in order to meet the labor debt claim.
However, he affirmed that such understanding “did not represent a final interpretation of the law, given the disregard of the reasons for the creation of the Rural Product License, disregarding that, to the referred assets, the legal system imprinted a function that prevails over the satisfaction of a private credit, even if of a food nature”.
Thus, together with all the members of the 4th Panel, in a unanimous decision, the Superior Court of Justice ruled out conflicting issues that hover over the relativization of the unseizability of Rural Notes, understanding the literal interpretation of the legal text of decree 167/67 and law 8929/04, which state that Rural Notes are absolutely unseizable.
In view of the turbulent times the country is going through, and in view of the great circulation of goods inherent to Agribusiness, the establishment of an understanding in the sense of protecting the products pledged as guarantee through Rural Bonds is an important factor to boost the economy.
Therefore, taking into account Brazil’s history, in which it depends on capital generated through rural negotiations, the legislator, by providing that Rural Credit Notes are absolutely unseizable, sought to protect relationships in the agricultural area, in a way that the current position of the Superior Court of Justice is rightly in harmony with the legal text.
The DDSA’s real estate team is available for further clarifications and assistance in cases involving real estate and land contracts.