CONSIGNABLE MARGIN RESERVE CONTRACT IN THE STATE OF SANTA CATARINA’S JURISPRUDENCE

Abstract

The present work deals with the topic of the consignable margin reserve contract, and its reception in the jurisprudence of Santa Catarina. Firstly, it is analyzed the applicability of the Consumer Protection Code to financial institutions, and which are the main consequences of such incidence notably in view of the protective nature of consumer legislation as an expression of the diagonal effectiveness of fundamental rights, and in particular regarding the inversion of the burden of proof. There are presented the concepts of consignable loan andof consignable margin reserve, differentiating them, with the indication of the law and regulation applicable to the latter modality. With that, it is aimed to situate the topic and make possible the comprehension about the possible irregularities regarding the aforementioned contractual species, with an emphasis on the main flaws that are commonly alleged by contracting parties in lawsuits that discuss the consignablemargin reserve. After that, judgments are analyzed on the contract inquestion, within the scope of the Santa Catarina Appeals Panels and theSanta Catarina Court of Justice, separately, with the goal of presenting the current prevailing understandings in such bodies, about its veracity and validity, or abusiveness; and, in the latter case, which are the consequences determined by the judging body arising from the recognitionof the nullity of the agreement, as well as what are the grounds used bythe judges as a reason to decide.