Circular Letter No. 1333 — Amends the MNI

Circular Letter No. 1333, of January 8, 1986

CIRCULAR LETTER NO. 1333

To

Financial Institutions Participating in the Check and Other Papers Clearing Service

We communicate that:

a) the settlement of differences found in the clearing movement, in the case of receipt clearing, will be made through the Difference Adjustment Document (DAD), at the initiative of the bank receiving the clearing slips, regardless of whether it is financially favored or prejudiced;

b) the return of a document to the clearing house is subject to the payment of a service fee to the Operator, equivalent to 3% (three percent) of the MVR, rounded to the nearest thousand cruzeiros, which benefits the Service. The service fee collected on a document whose return is challenged in the manner provided for in MNI 4-3-7-3 will not be refunded by the Operator;

c) the absence or irregularity of the crossing stamp on checks in transit through the Check and Other Papers Clearing Service does not constitute grounds for the return of the check, although the sending bank remains subject to the fine provided for in MNI 4-3-9-3-c, if the check is presented in disagreement with what is provided in MNI 4-3-3-4-b.

2. • Consequently, the sheets necessary for the update of the Manual of Norms and Instructions (MNI) are attached.

Brasília (DF), January 8, 1986.

DEPARTMENT OF BANKING OPERATIONS
José Costa de Oliveira
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 Service – 3
SECTION: Documents in Return – 4

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Circular Letter No. 1333, of January 8, 1986

1 - Except as provided in items 2, 3, 4, 6, 7 and 14, documents that are not returned by the next business day following the date contained in the clearing stamp are considered settled.

2 - Checks with a value lower than the limit referred to in item "d" of item 4-3-3-8, when exchanged in the specific sessions for these documents, may be returned by 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 routed over a centralized venue, where a holiday is expected on the business day following the exchange session, provided that the expression "municipal holiday" is stamped on them;

b) the documents are improperly forwarded, after the exchange session, to branches other than the drawees.

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

5 - Returns within the deadlines provided for in item 3, item "a", or in item 4 may be challenged immediately, in the same return session, or until the return sessions of the next business day, if the Operator proves the non-existence of the municipal holiday.

6 - The rules established in item 3, item "a", and in items 4 and 5 also apply to checks with a value lower than the limit referred to in item "d" of item 4-3-3-8, exchanged in the specific sessions for these documents.

7 - The deadlines for returning checks settled through the National System are indicated in document no. 2 of this chapter. The Operator will publish the list of hard-to-access venues (Black List).

8 - The reasons determining the return must always be explicitly stated 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;

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Return – 4

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Circular Letter No. 1333, of January 8, 1986

d) account closed;

e) absence or irregularity of the clearing stamp;

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 25.02.67;

i) null remittance.

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 for "improper clearing" or "null remittance".

11 - For the purpose of return, checks that present any of the hypotheses below are classified as:

a) "formal irregularity", those without the issuer's signature;

b) "improper clearing", when:

I - 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";

II - re-presented with the same "discrepancy or insufficiency in the issuer's signature" alleged in the first return;

III - presented to another establishment other than the drawee;

IV - 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;

c) "null remittance", when:

I - re-presented more than once;

II - re-presented only once, after having been refused in the first presentation under the allegation "written counter-order from the issuer" or "account closed";

III - without the mandate endorsement, when forwarded by another banking establishment other than that indicated in the special crossing.

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Return – 4

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Circular Letter No. 1333, of January 8, 1986

12 - It is forbidden to return under the allegation of "improper clearing" checks that, routed over venues - participants in the system in which they were presented, were improperly forwarded, after the exchange session, to branches other than those on which they were drawn.

13 - Checks that find themselves in the circumstances referred to in the previous item may be returned for other reasons, until the second business day following 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 sending bank a written communication about the occurrence, accompanied by a photocopy (front and back) of the checks in question.

14 - Checks that present an irregularity classifiable as null remittance (MNI 4-3-4-1 l-c) may be returned at any time.

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

16 - For the purpose of counting the maximum number of re-presentations, the return of checks by:

a) an establishment other than the drawee;

b) 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-presentation before the minimum interval of two business days, counted from the business day immediately following its first presentation, shall not be considered.

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 grounds 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) they must always be indicated by means of the normal return stamp, in a legible manner and without erasures, the reason determining the return and the date on which the check is being challenged by the drawee banking branch;

c) on the upper external part of the return stamp, the date of the session in which the check is actually being returned must be indicated by stamp. This measure constitutes the exclusive attribute of the banking branches participating in the Service in the respective State or Territory capitals;

d) for the purpose of counting the return deadline, a check without indication of the Federation Unit in which the drawee agency is located is considered to be routed over a venue in the interior of the State or Territory in which it was accepted for deposit;

e) if a municipal holiday occurs in the venue of the drawee banking branch within the return deadline, the checks eventually returned must contain on the back, stamped, the expression "municipal holiday". The deadline for returning these checks is automatically extended by one day;

f) the participant may not challenge, during the session, the return of checks whose deadlines for this purpose have been established; this is only admitted in the subsequent return session;

g) challenges made improperly must be regularized by returning the documents, obligatorily until the subsequent return session, which may even occur on the same day;

h) in the hypothesis provided for in item "e", the challenge may be made up to 30 calendar days after the date of the return of the check to the Clearing House where the respective exchange occurred, with communication to the Operator, and the document proving the non-existence of the alleged municipal holiday for the return outside the regulatory deadline must be attached to the check;

i) challenges made in accordance with the previous item must be immediately communicated, by the Operator, to the Central Bank/Banking Supervision Department, with a view to adopting appropriate measures.

19 - Clearing slips may only be returned for the following reasons:

a) discrepancy in the value received;

b) receipt made outside the deadline;

c) improper clearing;

d) absence or irregularity of the clearing stamp;

e) absence or irregularity of the mechanical authentication;

f) insufficient transfer for the indicated purpose;

g) discrepancy in the indication of the destination branch, account number or name of the beneficiary,

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Return – 4

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Circular Letter No. 1333, of January 8, 1986

20 - The reasons "insufficient transfer for the indicated purpose" and "discrepancy in the indication of the destination branch, account number or name of the beneficiary" only apply to the return of a Credit Document, model C, when the purpose to which it is destined cannot be fulfilled due to insufficiency in the amount transferred or discrepancy in its filling out.

21 - The return of any document for the settlement of differences found in the forwarding of negotiable papers from Participant to Participant is forbidden.

22 - The settlement of differences found in the clearing movement will be carried out as follows:

a) when it concerns payments, it is always initiated by the Participant who is financially prejudiced, using the Difference Adjustment Document (DAD). It is up to the favored Participant to communicate the fact to the prejudiced establishment, immediately after the difference is detected, by means of the form called Difference Communication Document (DCD);

b) in the case of receipts, it is always initiated by the bank receiving the respective clearing slips, regardless of whether it is financially favored or prejudiced, using the Difference Adjustment Document (DAD).

23 - The Difference Adjustment Document (DAD) may be challenged, at the time of delivery or during the subsequent return session, if the documentation attached to it is not sufficient to prove the difference.

24 - The Difference Adjustment Document (DAD) that refers to a difference already settled previously must be returned for "improper clearing".

25 - The return of a document to the clearing house is subject to the payment of a service fee to the Operator, equivalent to 3% (three percent) of the MVR, rounded to the nearest thousand cruzeiros, which benefits the Service. The service fee collected on a document whose return is challenged in the manner provided for in MNI 4-3-7-3 will not be refunded by the Operator.

26 - The return of the Difference Adjustment Document (DAD) is exempt from the payment of the service fee mentioned in the previous item.

27 - The service fee is the responsibility of the Recipient, and may be transferred to third parties, when resulting from the return of a check for:

a) insufficient funds;

b) discrepancy or insufficiency in the issuer's signature;

c) written counter-order from the issuer;

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Documents in Return – 4

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Circular Letter No. 1333, of January 8, 1986

d) Account closed;

e) issuance, by entities and bodies of the direct and indirect federal public administration, in disagreement with the requirements contained in art. 74, § 2nd (second), of Decree-Law no. 200, of 25.02.67.

28 - The service fee is the responsibility of the Sender, and is non-transferable to third parties, when resulting from the return of:

a) clearing slip for:

I - discrepancy in the value received;

II - receipt made outside the deadline;

III - improper clearing;

IV - absence or irregularity of the clearing stamp;

V - absence or irregularity of the mechanical authentication;

b) check for:

I - absence or irregularity of the clearing stamp,

II - formal irregularity or error in filling out;

III - improper clearing;

IV - null remittance.

29 - The service fee is also the responsibility of the Sender, and may be transferred to third parties, when resulting from the return of the Credit Document, model C, for any of the following reasons:

a) insufficient transfer for the indicated purpose;

b) discrepancy in the indication of the destination branch, account number or name of the beneficiary.

30 - If there is a concurrence of causes for the return, the one that implies the responsibility of the Sender prevails, for the purpose of charging the service fee.

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Clearing Sessions – Exchange - 6

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Circular Letter No. 1333, of January 8, 1986

1 - The exchange is processed by means of direct delivery, to each Recipient, of closed envelopes, containing the documents to be cleared to debit and to 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 the representatives of the Sending and Receiving establishments, the Operator must open at least one envelope to verify its content, or as many as requested by a duly accredited employee of the Central Bank, registering the occurrence. The irregularities eventually found are the responsibility of:

a) the Sender, when classifiable in the following hypotheses:

I - absence of sum tape;

II - sum error;

III - sum tape without authentication;

IV - lack of indication or incorrect indication of the quantity of documents;

V - documents without the clearing stamp or crossing 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 for in MNI 16-8-3;

b) the Recipient, when related to the transit of: - -

I - checks manufactured in disagreement with the standards provided for in MMI 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.

5 - The time of the sessions must be fixed by consensus of the Participants, observing that:

TITLE: REGULATIONS AND SPECIAL PROVISIONS – 4
CHAPTER: Check and Other Papers Clearing Service – 3
SECTION: Clearing Sessions – Exchange - 6

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Circular Letter No. 1333, of January 8, 1986

a) the start of the exchange session must occur at least two hours after the closing of the external business hours of the majority of Participants in the venue, 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, and provided that the Participants, in a meeting specially convened by the Operator, assume the commitment to forward to the Service the total quantity on the same day they are accepted;

c) the change of time of the sessions is subject to the authorization of the Superior Administration of the Operator, which will hear, previously, the Central Bank/Department of Banking Operations.

6 - In centralized venues of Regional Integrated Systems, the Operator will fix one or more time slots for the specific exchange of checks with a value lower than the limit referred to in item "a" of item 4-3-3-8, observing that:

a) in the Regional Integrated Systems of São Paulo (SP) and Rio de Janeiro (RJ), checks with a value lower than five MVR may transit through the specific exchange session;

b) in the other Regional Integrated Systems, checks with a value lower than one MVR may transit through the specific exchange session.

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

8 - If a municipal holiday occurs in a centralized venue of a Regional Integrated System:

a) the event is not considered, in the internal venues 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 transit through the exchange sessions held in that venue, on the business day following the event,

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

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