Circular No. 4021 — Amends Circular No. 3,996 Regarding LTEL-LFG Operations

The Collegiate Board of the Central Bank of Brazil, in a session held on May 26, 2020, based on Art. 10, item V, of Law No. 4,595, of December 31, 1964, and Resolution No. 4,795, of April 2, 2020,

R E S O L V E:

Art. 1º Circular No. 3,996, of April 6, 2020, shall enter into force with the following alterations:

“Art. 10. .....................................................

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II - only values maturing from 360 (three hundred and sixty) days onwards shall be considered for the securities referred to in item IV; and

III - only values maturing from 180 (one hundred and eighty) days onwards shall be considered for the securities referred to in item V.

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“Art. 14. .....................................................

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§ 2º ..........................................................

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III - up to 25% (twenty-five percent) of the amount of the Reference Equity of the conglomerate or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, in operations requested from June 22 to June 26, 2020;

IV - up to 25% (twenty-five percent) of the amount of the Reference Equity of the conglomerate or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, respecting the limit provided in items I and II of the caput, in operations requested from July 20 to July 31, 2020;

V - up to 10% (ten percent) of the amount of the Reference Equity of the conglomerate, or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, respecting the limit provided in items I and II of the caput, in operations requested from August 24 to August 27, 2020;

VI - up to 10% (ten percent) of the amount of the Reference Equity of the conglomerate, or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, respecting the limit provided in items I and II of the caput, in operations requested from September 21 to September 24, 2020;

VII - up to 10% (ten percent) of the amount of the Reference Equity of the conglomerate, or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, respecting the limit provided in items I and II of the caput, in operations requested from October 26 to October 29, 2020;

VIII - up to 10% (ten percent) of the amount of the Reference Equity of the conglomerate, or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, respecting the limit provided in items I and II of the caput, in operations requested from November 23 to November 26, 2020; and

IX - up to 50% (fifty percent) of the amount of the Reference Equity of the conglomerate, or the PLA calculated based on the Combined Balance Sheet of the Cooperative System, as applicable, respecting the limit provided in items I and II of the caput, in operations requested from December 17 to December 21, 2020.

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“Art. 18. .....................................................

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§ 3º In the case of the securities referred to in items IV and V of Art. 5 of Resolution No. 4,795, of 2020, the financial institution must request, according to the form and procedure established by Desig, the corresponding dissolution of guarantee when the maturity of the assets deposited in the pledge account owned by the Central Bank of Brazil occurs within a period shorter than those provided in items II and III of Art. 10, as applicable, without prejudice to the provisions of §§ 1º and 2º.” (NR)

Art. 2º This Circular enters into force on the date of its publication.

Bruno Serra Fernandes Paulo Sérgio Neves de Souza Monetary Policy Director Supervision Director

João Manoel Pinho de Mello Director of System Organization and Financial Resolution