Circular Letter No. 2,882

CIRCULAR LETTER No. 002882 ------------------------ Provides for the daily submission of information on the minimum and maximum interest rates charged in overdraft credit operations, under the terms of Circular 2,936 of 14 October 1999. Multiple banks with commercial portfolios, commercial banks and savings banks must daily inform the Central Bank of Brazil, Department of Registration and Information - DECAD, through transaction PESP500 of the Central Bank Information System _ SISBACEN, option Circular 2,937 _ Overdraft Rates - of the effective daily minimum and maximum interest rates charged in contracts for opening credit in current account - overdraft, referred to in Article 3 of Circular 2,936 of 14 October 1999. 2. The effective daily rates to be reported, regardless of the methodology adopted by financial institutions for charging overdraft-related expenses, must be calculated by deannualizing the interest rate for the period by the number of business days observed in that same period. 3. In the composition of each rate, in addition to the nominal interest rate, all taxes, charges and any other expenses whose triggering event is the use of credit must be considered, so as to express the cost effectively charged to the borrower, except for the amount charged for renewal of the contract, as it is not directly associated with the use of the funds utilized. 4. The rate information must be provided by the 2nd (second) business day following the date to which it refers, considering as a business day any day that is not a Saturday, Sunday or national holiday. 5. This Circular Letter enters into force on the date of its publication, and its effects, as of 6 December 1999. Brasilia, 24 November 1999. DEPARTMENT OF REGISTRATION AND INFORMATION Sergio Almeida de Souza Lima Head