Circular Letter No. 1069 — Provides for the Rounding of Check Values Referenced in MNI 4-3-3-10-C

Circular Letter No. 1069, of 08/20/84.

CIRCULAR LETTER No. 1069

To

Financial Institutions Participating in the Check and Other Papers Clearing Service

We communicate that, for the purposes of what is provided in MNI 4-3-3-10-c, the fractional part of the ten-thousands place of cruzeiros of the values of the checks mentioned therein shall henceforth be rounded up.

2. Consequently, the sheets necessary for the updating of sections 4-3-3, 4-3-4, and 4-3-6 of the Manual of Norms and Instructions (MNI) are attached.

Brasília (DF), August 20, 1984.

BANKING OPERATIONS DEPARTMENT

Paulo César Ximenes A. Ferreira

CHIEF

This text does not replace that published in the DOU and in Sisbacen.

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Clearing - 3
Circular Letter No. 992, of 02/13/84 - At. MNI No. 724

1 - Subject to the provisions of the following item, the following papers shall circulate through the Service:
a) checks, including payment order checks and travel checks; b) Export Credit Declaration (DCE); c) Difference Adjustment Document - DAD (Document No. 3 of this Chapter); d) Credit Document - DOC (Document No. 2 of this Chapter); e) documents for the refund of federal taxes (payment orders, credit orders, and checks); f) clearing slips:
I - for registered collection in banks (Document No. 1 of this Chapter); II - for bank orders; III - for deposits between branches of the same bank; g) National Treasury Notes; h) receipts, including payment order receipts.

2 - Only the following are clearable through the National System:
a) checks and payment order receipts drawn on places not covered by the Local or Regional Integrated System in which the sending branch participates, or b) checks and payment order receipts drawn on any place other than that of the deposit acceptance, if the sending branch is located in a place not yet served by a Local or Regional Integrated System.

3 - Only documents drawn on the Local or Regional Integrated System itself are admitted for clearing, except:
a) those clearable through the National System; b) clearing slips related to the collection of securities, drawn on any place, provided that the destination financial institution maintains a branch in the System in which they were presented.

4 - Receipts, including payment order receipts, may only circulate through the Service if they contain the elements necessary to characterize them as such.

5 - It is prohibited, for the purpose of forwarding to the Service, to attach any documents to clearable papers, except in the case of a Difference Adjustment Document (DAD).

6 - All documents must contain (on the back and by stamp) the date, the name of the Sender, their code number, and the declaration “Liquidated through the Check and Other Papers Clearing Service.”

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Clearing - 3
Circular Letter No. 992, of 02/13/84 - At. MNI No. 724

7 - The affixing of this clearing stamp substitutes the Sender's signature for all legal purposes and effects, thereby making them responsible for the authenticity and validity of the receipts or the last endorsement.

8 - The cancellation of the clearing stamp is only valid when authenticated by the Sender, becoming unnecessary, however, in cases where the re-presentation of the document is made by the same Participant indicated in the first presentation.

9 - Until the respective clearing is considered perfect and final, the Recipient is a faithful depositary of the documents forwarded to them by the Sender.

10 - With regard to checks, in particular, the following must also be observed:
a) the affixing of the clearing stamp also makes the Sender responsible before the drawee establishment for the eventual non-existence or insufficiency of the chain of endorsements; b) only those that have been prepared in accordance with the standards of requirements referred to in MNI 16-8-1 may circulate through the Service;

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Clearing - 3
Circular Letter No. 1069, of 08/20/84 - At. MNI No. 761

c) the circulation of checks, containing a clearing stamp with the date of the business day preceding the session in which they are being exchanged, is admitted, when of value lower than the stipulated Limit - half MVR or one MVR, depending on the System, rounded up to the next fraction of ten thousand cruzeiros, -, only in the specific sessions for the exchange of these documents; (*) d) no check may be re-presented more than once, e) the re-presentation of a returned check due to insufficient funds may only be made after at least two business days have elapsed, counted from the business day immediately following its first presentation; f) checks returned due to “discrepancy or insufficiency in the issuer's signature” may be re-presented, at the Sender's discretion, after the discrepancy or insufficiency in the first return has been remedied by the affixing of new signatures.

11 - With reference to checks and payment order receipts liquidable through the National System, it is further necessary to observe:
a) they are exchanged, in special envelopes, during normal exchange sessions held:
I - in the capital of the State of São Paulo, or II - in any other State or Territory capital, provided that the drawee establishments are represented in the respective clearing house. b) they must receive a special stamp, on the back, containing the name of the State or Territory capital where the exchange must be effected and the date on which they are being exchanged, in addition to the name of the Sender, their code number, and the declaration “Liquidated through the Check and Other Papers Clearing Service.”

12 - Clearing slips may only circulate through the Service:
a) on the same date of receipt, re-presentation being prohibited; b) mechanically authenticated by the Sender, allowing in case of error, complementary authentication or registration of a new authentication with cancellation of the previous one. c) if their respective receipts occurred up to the day stipulated for maturity or, in the case of titles with maturity “At Sight” or “On Presentation”, up to 15 days after the date of their issuance.

13 - Forwarding to the Service of clearing slips related exclusively to the Credit Document (DOC) or to the collection of promissory notes that have been received on the first business day after their respective maturities is admitted, only when these fall on a non-business day.

14 - Regarding clearing slips related to promissory notes paid with discount, their forwarding to the Service is only admitted if:

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Clearing - 3
Circular Letter No. 1069, of 08/20/84 - At. MNI No. 761

a) the conditions for granting the privilege must necessarily appear in the collection block; b) the receipts occurred up to the date stipulated for this purpose or up to the first subsequent business day, if the date established for the privilege falls on a non-business day.

15 - If discount conditions are provided for in the promissory notes, they must necessarily appear in the corresponding collection blocks.

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Return - 4
Circular Letter No. 1069, of 08/20/84 - At. MNI No. 761

1 - Subject to the provisions of items 2, 3, 4, 6, and 7, documents are considered liquidated if they are not returned by the business day following the date contained in the clearing stamp.

2 - Checks of value lower than the limit referred to in item “c” of item 4-3-3-10, when exchanged in the specific sessions for these documents, may be returned up to the second business day following the date contained in the clearing stamp.

3 - In addition to the deadlines provided for in items 1 and 2, in Regional Integrated Systems, participants have one additional business day deadline for return, when:
a) the documents are drawn on a centralized place where a holiday is scheduled on the business day following the exchange session, provided that the expression “municipal holiday” is stamped on them; b) the documents are forwarded improperly, after the exchange session, to agencies other than the drawees.

4 - If a municipal holiday occurs in the centralized place of a Regional Integrated System, the challenged documents, whose clearing stamps contain the same date as the event, may circulate through the return session of the second business day after the holiday.

5 - Returns within the deadlines provided for in item “a” of item 3, or in item 4, may be challenged immediately, in the same return session, or up to the return sessions of the following business day, if the operator proves the non-existence of the municipal holiday.

6 - The provisions established in item “a” of item 3 and in items 4 and 5 also apply to (*) checks of value lower than the limit referred to in item “c” of item 4-3-3-10, exchanged in the specific sessions for these documents.

7 - The deadlines for the return of checks liquidated through the National System are indicated in Document No. 4 of this chapter. The Operator will publish the list of places with difficult access (Black List).

8 - The reasons determining the return must always be specified on the back of the documents, in a legible manner and without erasures; in the case of checks and clearing slips, the reasons must be indicated obligatorily by means of the return stamp.

9 - Checks may only be returned for the following reasons:
a) insufficient funds; b) discrepancy or insufficiency in the issuer's signature; c) written counter-order from the issuer; d) account closed; e) absence or irregularity of the clearing stamp;

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Return - 4
Circular Letter No. 1069, of 08/20/84 - At. MNI No. 761

f) formal irregularity or error in filling out; g) improper clearing; h) when issued by entities and bodies of the direct and indirect federal public administration, they are in disagreement with the requirements contained in art. 74, § 2nd (second) of Decree-Law No. 200, of 02/25/67.

10 - In the return of checks, the existence or non-existence of funds must invariably be indicated, regardless of the reasons that justified them, except if returned:
a) by another establishment that is not the drawee; b) by the drawee establishment itself, if the place of payment stated in the documents does not integrate the same clearing system in which they were presented.

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Documents in Return - 4
Circular Letter No. 992, of 02/13/84 - At. MNI No. 724

11 - Checks may be returned for “improper clearing” when they fall under any of the following hypotheses:
a) re-presented more than once; b) re-presented only once, after having been refused in the first presentation under the allegation of “written counter-order from the issuer” or “account closed”; c) re-presented before the minimum interval of two business days, counted from the business day immediately following their first presentation, if initially refused with the indication of “insufficient funds”; d) re-presented with the same “discrepancy or insufficiency in the issuer's signature” alleged in the first return; e) presented to another establishment that is not the drawee; f) presented to the drawee establishment itself, if the place of payment, stated in the documents, is not integrated into the clearing system in which they were presented.

12 - It is prohibited to return under the allegation of “improper clearing” checks that, drawn on places participating in the system in which they were presented, were forwarded improperly, after the exchange session, to agencies other than those on which they were drawn.

13 - Checks that find themselves in the circumstances treated in the previous item may be returned for other reasons up to the second business day, subsequent to the session in which they are exchanged, provided that, in the return session of the first business day after the exchange, the drawee bank delivers to the Sender bank a written communication about the occurrence, accompanied by a xerographic copy (front and back) of the checks in question.

14 - Checks lacking the following must be returned for “formal irregularity”:
a) the issuer's signature; b) the indication of the place where payment must be made; c) endorsement mandate, when forwarded by another banking establishment other than that indicated in the special crossing, if any.

15 - For checks returned for the second time, due to insufficient funds or because of “account closed”, the formalities related to the Register of Issuers of Checks without Funds (CCF), as provided in MNI 16-9-12, must be complied with.

16 - The following check returns must not be considered, for the purpose of counting the minimum number of re-presentations:
a) by an establishment that is not the drawee; b) by the drawee establishment itself, if the place of payment stated in the document does not integrate the same system in which it was presented; c) re-presented before the minimum interval of two business days, counted from the business day immediately following its first presentation.

17 - The return of a check re-presented before the minimum interval of two business days, counted from the business day immediately following its first presentation, does not constitute a reason for interrupting the deadline for re-presentation of a check initially returned with insufficient funds.

18 - In the return of checks forwarded to the National System, the following must also be observed:
a) they may only be returned in the same clearing house in which they were exchanged; b) the reason determining the return and the date on which the check is being challenged by the drawee banking department must always be indicated by means of the normal return stamp, in a legible manner and without erasures;

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Clearing Sessions – Exchange - 6
Circular Letter No. 1069, of 08/20/84 - At. MNI No. 761

1 - The exchange is processed through direct delivery, to each Recipient, of closed envelopes, containing the documents to be cleared to debit and credit, with their respective summation tapes duly authenticated. The Sender expressly declares the quantity and total value of the documents contained in each envelope, assuming full responsibility for them.

2 - According to local needs and conveniences, the exchange session may be divided into two or more time slots.

3 - It is prohibited for Participants to open the envelopes during the exchange sessions.

4 - In each exchange session, in the presence of representatives of the Sender and Recipient establishments, the Operator must open at least one envelope to verify its content, or as many as requested by a duly accredited Bank of Brazil employee, recording the occurrence. Any irregularities eventually found are the responsibility of:
a) the Sender, when they fall under the following hypotheses:
I - absence of summation tape;
II - summation error;
III - summation tape lacking authentication;
IV - lack of indication or incorrect indication of the quantity of documents; V - documents lacking the clearing stamp; VI - papers not provided for in section 3 of this chapter or accompanied by other documents; b) the Recipient, when related to the circulation of checks:
I - prepared in disagreement with the standards provided in MNI 16-8-1; II - lacking the indication of the account holder's registration number in the CPF or CGC, or the word EXEMPT in the field intended for respective personalization.

5 - The schedule of the sessions must be fixed by consensus of the participants, observed that:
a) the start of the exchange session must occur at least two hours after the closing of external business hours of the majority of Participants in the place, in order to allow the forwarding to the Service of all documents on the same day they are accepted; b) only when duly justified, an interval lower than that provided for in item “a” is admitted, provided that the participants, in a meeting specially convened by the Operator, assume the commitment to forward to the Service the total quantity of documents on the same day they are accepted; c) the change of session schedule is subject to authorization from the Superior Administration of the Operator, who will previously hear the Bank of Brazil/Banking Operations Department.

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Clearing Sessions – Exchange - 6
Circular Letter No. 1069, of 08/20/84 - At. MNI No. 761

6 - In the centralized places of Regional Integrated Systems, the Operator will fix one or more time slots for the specific exchange of checks of value lower than the limit referred to in item “c” of item 4-3-3-10, observing the following criteria: (*) a) in Systems whose monthly movement is equal to or lower than 3 million documents, checks of value lower than 1/2 MVR may circulate through the specific exchange session. b) in Systems whose monthly movement is superior to 3 million documents, checks of value lower than one MVR may circulate through the specific exchange session. c) the specific exchange session may be suppressed in Systems whose monthly movement is lower than 500 thousand documents, provided that the majority of participants, through their respective headquarters, manifest favorable opinion on the measure to the Operator.

7 - It is incumbent upon the Operator to adopt measures aimed at disciplining the functioning of the sessions mentioned in the previous item and to promote the appropriate alterations in each System, always in the months of FEBRUARY and AUGUST, based on statistical data collected in the previous civil quarter.

TITLE: REGULATIONS AND SPECIAL PROVISIONS - 4
CHAPTER: Check and Other Papers Clearing Services - 3
SECTION: Clearing Sessions – Exchange - 6
Circular Letter No. 992, of 02/13/84 - At. MNI No. 724

8 - If a municipal holiday occurs in a place centralized by a Regional Integrated System, the event is not considered, throughout the System, for the purpose of forwarding papers to the Service.

9 - If a municipal holiday occurs in the centralized place of a Regional Integrated System:
a) the event is not considered, in the other places of the System, for the purpose of forwarding papers to the Service; b) documents whose clearing stamps contain the date of the holiday may circulate through the exchange sessions held in that place, on the business day subsequent to the event.

10 - The provisions established in items 8 and 9 also apply to checks of value lower than the limits stipulated in item 6. (*)

11 - For the purpose of forwarding checks and payment order receipts to the National System, municipal holidays scheduled for the drawee places are not considered. (*)