CIRCULAR LETTER No. 1298

To
Financial Institutions participating in the
Check and Other Documents Clearing Service

Since the Check and Other Documents Clearing Service must be supervised by the Supervision Department of this Body, we communicate the amendment of item 22 of MNI 4-3-1.

2. Consequently, we attach the necessary sheet for updating the Manual of Norms and Instructions.

Brasília (DF), 30 October 1985..

DEPARTMENT OF BANKING OPERATIONS
Jose Costa de Oliveira
HEAD

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

Circular Letter No. 1298, of 30 October 1985.

1 - The Check and Other Documents Clearing Service is regulated by the Central Bank and executed by Banco do Brasil S.A.

2 - The following participate in the Service:

a) the Central Bank;

b) banking establishments authorized to receive deposits from the public, movable by check;

c) other financial institutions, at the discretion of the Central Bank/Department of Banking Operations.

3 - For the purpose of this chapter, the following are named:

a) Executant - Banco do Brasil S.A.:

b) Participant - all financial institutions admitted to the Service:

c) Sender - the Participant that forwards documents to the Service:

d) Addressee - the Participant receiving the documents.

4 - The admission of financial institutions to the Service depends on prior and express authorization from the Central Bank/Department of Banking Operations, which assigns each Participant a code number, valid in all locations of the Country, and the Executant is responsible for communicating the fact to the other Participants. Each bank branch is identified by a numeric suffix corresponding to its respective registration order number in the General Registry of Taxpayers of the Ministry of Finance.

5 - The admission of a bank branch, opened in a location already covered by the Service, is automatic, provided that the respective financial institution is authorized, in the form of the previous item.

6 - The Service is developed through three modalities:

a) Local System: covers the branches of Participants located in any location where the Executant maintains a branch, allowing the participation of branches located in surrounding locations that are willing to attend the exchange and return sessions, at the determined times, at their sole account and risk;

b) Regional Integrated System: covers the branches of Participants located in locations of the same region previously determined by the Executant,

c) National System: covers all branches of Participants installed in the Country.

Circular No. 772, of 08.04.83 – At. MNI No. 672.

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Documents Clearing Service – 3
SECTION: General Provisions - 1

7 - The Local System must be installed by the Executant, upon communication to the Central Bank/Department of Banking Operations, whenever Banco do Brasil S.A. and at least one other participating establishment operate in the location.

8 - If regional conveniences so advise, the Executant may promote the installation of a Regional Integrated System, upon communication to the Central Bank/Department of Banking Operations.

9 - The Executant may also, after prior consultation with the Central Bank/Department of Banking Operations, promote the interconnection of Regional Integrated Systems.

10 - The clearing sessions must be held in a closed room. In the headquarters locations of a System, this room is called a clearing chamber.

11 - The Executant must assign a code number to the implemented clearing chambers, regularly sending to the Participants a list of these chambers and their respective code numbers.

12 - Banco do Brasil S.A. is responsible for representing the Central Bank, as a Participant of the Service, whenever necessary.

Circular No. 772, of 08.04.83 – At. MNI No. 672.

13 - Participants must indicate to the Service their accredited representatives, and the Executant may refuse the proposed name or request, at any time, the replacement of the indicated representatives.

14 - Establishments that do not have branches in centralizing locations of Regional Integrated Systems, but that maintain them within the integrated region, must be represented by their own bearer or, optionally, by one of the Participants of the Service, solely for the purpose of forwarding and receiving documents, after prior consultation with the Central Bank/Department of Banking Operations.

15 - Also subject to representation, in the form of the previous item, in the case of interconnection of systems, are Participants that, while maintaining a branch in a centralizing location of a Regional Integrated System, do not maintain one in the centralizing location of the other Integrated System(s).

16 - All Participants that do not have a branch in the Capital of the State of São Paulo must be represented, in accordance with item 14, for the purpose of the National Clearing System.

17 - The clearing chambers of the Regional Integrated and National Systems do not operate on the commemorative date of Corpus Christi, and this day is therefore considered a holiday, for the purpose of the return periods of checks in transit through the Service.

18 - The forms and stamps used in the Service are made by the Participants, in compliance with the standards set by the Executant, and the use of non-standardized models is prohibited.

19 - The expenses indicated below are reimbursed by the Participants:

a) production of material for the Participants' use;

b) publication of the books of the Registry of Issuers of Bad Checks (CCF).

20 - Expenses with unified transportation of clearable documents are apportioned among the Participants in accordance with the following parameters:

a) 50% (fifty percent) of the total costs, according to the number of financial institutions participating in the respective System;

b) the remaining 50% (fifty percent), according to the number of branches of those financial institutions, existing at the end of each calendar half-year in the region covered by the System.

21 - The Participants undertake to observe the rules of this chapter and the routines of the Service determined by the Executant.

Circular Letter No. 1298, of 30.10.85 – At. MNI No. 893.

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Paper Clearing Service – 3
SECTION: General Provisions - 1

22 - Any irregularity capable of affecting the standing and position of the Participants must be reported by the Executant to the Central Bank/Department of Banking Operations which, after issuing an opinion on the matter, forwards the matter to the Supervision Department for examination and adoption of the appropriate measures.

23 - Any changes to the rules governing the Clearing Service will be incorporated into this chapter by means of a Carta-Circular issued by the Central Bank and signed by the Head of the Department of Banking Operations.

Circular Letter No. 1298, of 30.10.85 – At. MNI No. 893.