Circular Letter No. 1321 — Amendment to the MNI

Circular Letter No. 1321, of December 18, 1985.

CIRCULAR LETTER No. 1321

To

Financial Institutions participating in the Check and Other Papers Clearing Service

We inform you that the limit value of checks to be exchanged in the specific sessions of the Clearing Houses of Rio de Janeiro (RJ) and São Paulo (SP) has been raised to 5 MVR, rounded to the nearest hundred thousand cruzeiros, while the limit value of 1 MVR, which will now be rounded to the nearest hundred thousand cruzeiros, remains for exchanges in the specific sessions of the other Clearing Houses in the Country.

2. We also inform you that the values exchanged in the specific sessions will be included in the financial results of the banks on the same day these sessions are held.

3. We further communicate that, although the interconnection of the Regional Integrated Clearing Systems of Rio de Janeiro (RJ) and São Paulo (SP) is maintained, checks may no longer be settled through the Interconnected System.

4. The measures communicated in this Circular Letter will be implemented on a date to be announced by the Operator.

5. Consequently, we attach the necessary sheets to update the Manual of Norms and Instructions.

Brasília (DF), December 18, 1985.

DEPARTMENT OF BANKING OPERATIONS
José Costa de Oliveira
CHIEF

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

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Clearing - 3
Circular Letter No. 1319, of 13.12.85 – At. MNI No. 903.

1 - The following papers 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. 1 of this chapter); d) documents for the refund of federal taxes; e) clearing slips:
I - of Collection Block, models A and 3 (document No. 2 of MNI 16-8); II - of Credit Document, models A, 3 and C (document No. 3 of MNI 16-8); f) receipts, including payment order receipts, if they contain the necessary elements to characterize them as such; g) Financial Note instituted by Decree No. 91.959, of 19.11.85.

2 - The following are clearable through the System:
a) Local:
I - documents drawn on the System itself;
II - clearing slips related to the collection of titles, drawn on any location, provided that the destination financial institution maintains a branch in the System; b) Regional Integrated:
I - documents drawn on the locations of the System itself or on locations of another Regional Integrated System interconnected with this one, even if they have been forwarded by non-participating bank branches; II - clearing slips related to the collection of titles, drawn on any location, provided that the destination financial institution maintains a branch in the System; c) National: checks and payment order receipts, drawn on locations not covered by the System or Regional Integrated System (or by the System Interconnected to it) in which they are being exchanged.

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

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Clearing - 3
Circular Letter No. 1319, of 13.12.85 – At. MNI No. 903.

4 - The documents forwarded to the Service must contain, obligatorily:
a) on the back of all documents: a clearing stamp with the date of the exchange session, the name of the Sender, its code number, and the declaration "Forwarded for Settlement through the Check and Other Papers Clearing Service"; b) on the front of checks: a crossing stamp, which can be special (in black) or general (in white).

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

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

7 - Until the respective clearing is considered perfect and final, the Recipient is a fiduciary depositary of the documents forwarded to it by the Sender.

8 - With regard to checks, in particular, the following must also be observed:
a) the affixing of the clearing stamp also makes the Sender responsible, towards the drawee establishment, for the eventual non-existence or insufficiency of the chain of endorsements;

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Clearing - 3
Circular Letter No. 1321, of 18.12.85 – At. MNI No. 904.

b) Checks that have been prepared in accordance with the standards and requirements referred to in MNI 16-8-1 may circulate through the Service; c) checks may only be presented or re-presented by another establishment, other than that indicated in the special crossing, when provided with a mandate endorsement; d) the circulation of checks is admitted, bearing a clearing stamp with the date of the business day preceding the session in which they are being exchanged, when of value lower than the stipulated limit — one MVR or five MVR, depending on the System, rounded to the nearest hundred thousand — only in the specific sessions for the exchange of these documents; e) with reference to re-presentation:
I - no check may be re-presented more than once; II - the re-presentation of a check after it has been refused in the first presentation on the grounds of "written counter-order from the issuer" or "closed account" is prohibited; III - the re-presentation of a check returned for insufficient funds may only be made after at least two business days have elapsed, counted from the business day immediately following its first presentation; IV - checks returned for "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.

9 – With reference to checks and payment order receipts clearable through the National System, the following must also be observed:
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 capital of the State or Territory where the exchange must be carried out and the date on which they are being exchanged, in addition to the name of the Sender, its code number, and the declaration "Forwarded for Settlement through the Check and Other Papers Clearing Service".

10 - Reserving the provisions of the next item, clearing slips may only circulate through the Service:

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Clearing - 3
Circular Letter No. 1321, of 18.12.85 – At. MNI No. 904.

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 within the time limits allowed in MNI 16-10-8 and 16-10-9.

11 – The forwarding to the Service of clearing slips is admitted, exclusively, for the Credit Document, models A and B, until the business day following the receipt, re-presentation being prohibited. In this case, the clearing slips may contain a clearing stamp with the date of the business day preceding the session in which they are being exchanged.

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Clearing Sessions – Exchange - 6
Circular Letter No. 1321, of 18.12.85 – At. MNI No. 904.

1 - The exchange takes place through direct delivery, to each Recipient, of closed envelopes containing the documents to be cleared to debit and credit, with their respective sum 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 Central employee, registering the occurrence. Any irregularities eventually found are the responsibility of:
a) the Sender, when falling under the following hypotheses:
I - absence of sum tape;
II - sum error;
III - sum 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; VII - clearing slips of Credit Document, model C, manufactured in disagreement with the standards provided in MNI 16-8-3; b) the Recipient, when related to the circulation of:
I - checks manufactured in disagreement with the standards provided in MNI 16-8-1; II - clearing slips of collection blocks or of Credit Document, models A and B, manufactured in disagreement with MNI 16-8-2 and 16-8-3, respectively.

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Clearing Sessions – Exchange - 6
Circular Letter No. 1321, of 18.12.85 – At. MNI No. 904.

5 - The time of the sessions must be fixed by consensus of the Participants, observing 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 location, in order to allow the forwarding to the Service of all documents on the same day they are received; b) only when duly justified, an interval shorter than that provided 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 amount of documents on the same day they are received; c) the change of session time is subject to the authorization of the Higher Administration of the Operator, which will previously hear the Bank Central/Department of Banking Operations.

6 - In locations centralizing 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 "d" of item 4-3-3-8, observing that: (*) a) in the Regional Integrated Systems of São Paulo (SP) and Rio de Janeiro (RJ), checks of value lower than five MVR may circulate through the specific exchange session; b) in the other Regional Integrated Systems, checks of value lower than one MVR may circulate through the specific exchange session.

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

8 - If a municipal holiday occurs in a location centralizing a Regional Integrated System:
a) the event is not considered, in the other locations of the System, for the purpose of forwarding payment papers and clearing slips of the Credit Document, models A and B, to the Service; b) payment papers and clearing slips of the Credit Document, models A and B, whose clearing stamps contain the date of the holiday may circulate through the exchange sessions held in that location, on the business day following the event.

9 - The rules established in items 7 and 8 also apply to checks of value lower than the limit referred to in item "d" of MNI 4-3-3-8.

10 - For the purpose of forwarding checks and payment order receipts to the National System, municipal holidays scheduled for the drawee locations are not considered.