BRAZIL Law and Practice Contributed by: Domicio dos Santos Neto, Frederico Favacho, Henrique Erbolato and Fernando Ferreira, Santos Neto Advogados
8.3 Creditor Protection and Collateral Enforcement Fiduciary Security Interests
to deliver goods may likewise be subject to specific enforcement, with damage occurring where specific performance is impossible or otherwise appropriate under the applicable rules. Agribusiness transactions may also benefit from the executory nature of certain instruments commonly used in the sector. CPRs, for example, are credit instruments that may support enforcement proceed- ings, with the applicable procedure depending on whether the obligation provides for physical or finan- cial settlement. Brazilian courts have recognised the relevance of specific enforcement in disputes involv- ing CPRs and agricultural products. The enforcement strategy will therefore depend on: • the nature of the contractual obligation; • whether the relevant document qualifies as an enforceable instrument; • the existence and type of collateral; and • whether the debtor is subject to insolvency or judi- cial reorganisation proceedings. 8.2 Litigation and Arbitration Trends in Agribusiness Litigation remains an important mechanism for resolv- ing agribusiness disputes in Brazil, particularly in dis- putes involving rural producers, supply contracts, credit obligations, guarantees and judicial reorgani- sation. At the same time, arbitration has become increasingly relevant for more complex commercial disputes, particularly where the parties are sophisti- cated businesses and the underlying contracts contain arbitration agreements. Arbitration may be particularly attractive in disputes involving long-term commercial relationships, commodities, supply chains, financing transactions and corporate arrangements, where the parties may value specialised decision-makers, pro- cedural flexibility and confidentiality. The increasing use of arbitration in agribusiness reflects the development of specialised expertise within the Brazilian arbitration community. The Bra- zilian arbitration framework is well established, and agribusiness has become one of the contexts in which specialised arbitration practice has developed.
Creditor protection in agribusiness transactions depends significantly on the type of collateral and the legal structure used to secure the underlying obli- gation. Brazilian law provides for both judicial and, in specific circumstances, extrajudicial enforcement mechanisms. Fiduciary security interests ( alienação fiduciária ) may provide creditors with efficient enforcement mecha- nisms, including the consolidation of ownership and subsequent sale of the secured asset in accordance with the applicable statutory procedure. Federal Law No 14,711/2023 further developed the legal frame- work governing fiduciary security interests by intro- ducing additional mechanisms for the enforcement and management of guarantees. The same legislation also introduced broader mecha- nisms for extrajudicial enforcement of certain secured credits, including rules concerning the execution of mortgages. However, the statutory framework expressly excludes financing operations involving agricultural activities from the specific extrajudicial mortgage enforcement procedure established by Law No 14,711/2023. Other Forms of Collateral Other types of collateral commonly used in agribusi- ness financing, including pledges over agricultural products, receivables assignments and rural property in trust structures, are subject to their own enforce- ment rules. The effectiveness of the security therefore depends on the nature of the collateral, the registra- tion requirements, the underlying financing instru- ment, and the debtor’s insolvency status. Judicial Reorganisation Other statutory rules have also preserved certain agri- business-related claims or collateral from the effects of judicial reorganisation. The treatment of CPRs is particularly relevant in this context. In 2025, the Supe- rior Court of Justice held that a credit represented by a CPR linked to a barter transaction does not become subject to judicial reorganisation merely because
23 AGRICULTURAL LAW 2026
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