Redirecting LCI and LCA Events

Optional

Payment of financial events will be optional for LCI and LCA guarantee contracts

From now on, custodians of Real Estate Credit Bills (LCI) and Agribusiness Credit Bills (LCA) may choose whether or not to direct the payment of financial events to investors who offer these assets as collateral at the B3 Clearinghouse. Until now, payment was mandatory.

With the change, financial institutions may choose, when registering the Guarantee Contract and the LCI or LCA Asset Transfer Request, whether these events will be paid to the guaranteed parties or not. The change brings greater flexibility and control to OTC market participants.

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Depository

OTC

Completed

OTC

Product benefits

Greater control

The parties to the guarantee contract may choose who will receive the LCI and LCA events given as collateral at B3.

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With the new rules, lien contracts now offer greater flexibility to OTC market participants.

When registering the Guarantee Contract and the Asset Transfer Request, custodians may choose whether the LCI and LCA financial events will be paid to the guaranteed party. This will be done through the field “Events for the Guaranteed Party? YES / NO".

Click here to learn more details about the registration.

LCA is a bond issued by a financial institution and is used to raise funds for the agribusiness chain. For the investor, the advantages of an LCA include income tax exemption and coverage by the Credit Guarantor Fund (FGC). A key differential of LCAs registered with B3 is the range of collateral that can be attached to them.

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LCI is similar to LCA, with funds raised to promote the real estate sector. Investors also have income tax exemption and FGC coverage. LCI cannot be redeemed at any time, but it can be traded on the secondary market. Its minimum maturity period varies according to the index attached to it.

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