The President Lula has sanctioned Law 14.905/24, which amends the Civil Code to regulate and standardize the issue of monetary updating and interest. The text was published in the Official Gazette of this Monday, 1st.Sanctioned Law amending CC and regulating monetary updating and interest.
The text states that if the obligation is not fulfilled, the debtor is responsible for losses and damages, plus interest, monetary updating, and attorney’s fees.In case the monetary updating index has not been agreed or is not provided for in specific legislation, the variation of IPCA, ascertained by IBGE, or the index that may replace it will be applied.
According to the text, when interest rates are not agreed upon, or when they are agreed upon without a stipulated rate, or when they arise from legal provisions, the interest rates will be set in accordance with the legal rate.
The legal rate will correspond to the Selic rate, minus the monetary updating index.The calculation methodology of the legal rate and its application will be defined by the National Monetary Council and disclosed by the Central Bank.
If the legal rate yields a negative result, it will be considered as 0 for calculating interest for the reference period. Selic Issue OvercomeIn an interview with Migalhas on Thursday, the 27th, Minister Luis Felipe Salomão addressed the issue. He emphasized that with the new rule, the matter of applying the Selic rate to civil debts, which was being discussed at the STJ, is now overcome.
Watch:In March of this year, the Special Court established the Selic rate to adjust civil debts, replacing the traditional model of monetary correction plus default interest. However, after intense debate, the trial was interrupted due to a request to review a procedural issue raised by Minister Salomão.
The reason was the absence of two ministers, Og Fernandes and Francisco Falcão, and the trial was tied. Yet, the President, Minister Maria Thereza, proceeded despite their absence and voted to break the tie.
After procedural issues raised by Salomão, a review request by Campbell halted the analysis, and the case was still pending in the Court.Check out the full text of the new law:LAW No. 14,905, OF JUNE 28, 2024Amends Law No. 10,406, of January 10, 2002 (Civil Code), to provide for monetary updating and interest.
I make known that the National Congress decrees and I sanction the following Law:Art. 1 This Law amends Law No. 10,406, of January 10, 2002 (Civil Code), to provide for monetary updating and interest.Art. 2 Law No. 10,406, of January 10, 2002 (Civil Code), shall be amended as follows.
“Article 389. If the obligation is not fulfilled, the debtor is responsible for losses and damages, plus interest, monetary updating, and attorney’s fees.Sole paragraph.
In case the monetary updating index has not been agreed or is not provided for by specific legislation, the variation of the National Consumer Price Index (IPCA) is applied, ascertained and disclosed by the Brazilian Institute of Geography and Statistics (IBGE), or the index to replace it.”(New Rule)”Article 395. The debtor is responsible for the damages caused by their delay, plus interest, value monetary updating, and attorney’s.
The legal rate corresponds to the Special System for Settlement and Custody (Selic) reference rate, minus the monetary updating index referred to in the sole paragraph of Article 389 of this Code.
2 The calculation methodology for the legal rate and its application shall be defined by the National Monetary Council and disclosed by the Central Bank of Brazil.§ 3 If the legal rate yields a negative result, it shall be considered as 0 (zero) for calculating the interest for the reference period.
“(New Rule)”Article 418. In case of contract breach, if:I – by the party that provided the earnest money, the other party may consider the contract as terminated, retaining it;II – by the party receiving the earnest money, the party that provided it may consider the contract as terminated and demand its return plus the equivalent, with monetary updating, interest, and attorney’s fees.” (New Rule)”Article 591.
If the loan is intended for economic purposes, interest is deemed due.Sole paragraph. If the interest rate is not agreed upon, the legal rate provided for in Article 406 of this Code shall apply.” (New Rule)”Article 772. The insurer’s delay in paying the claim obliges the monetary updating of the due compensation, without prejudice to default interest.
9,790, of March 23, 1999, that provide credit; orIV – carried out in the financial, capital, or securities markets.Art. 4 The Central Bank of Brazil shall provide an interactive application, accessible to the public, to simulate the use of the legal interest rate established in Article 406 of Law No.
10,406, of January 10, 2002 (Civil Code), in everyday financial situations.Art. 5 This Law shall enter into force on the date of its publication and shall have effects:I – as of its publication date, regarding the amendment of Article 2 inserting § 2 in Article 406 of Law No.
10,406, of January 10, 2002 (Civil Code); andII – 60 (sixty) days after its publication date, regarding the remaining provisions.Brasília, June 28, 2024; 203rd of Independence and 136th of the Republic.LUIZ INÁCIO LULA DA SILVAFernando HaddadManoel Carlos de Almeida Neto
