Circular Letter No. 2.897

CIRCULAR LETTER No. 002897 ------------------------ Discloses procedures to be observed in the operations of the Central Bank Rediscount, which is dealt with in Circular No. 2.965, of 8 February 2000. Taking into account the issuance of Circular No. 2.965, of 8 February 2000, we communicate that, as of 14 February 2000, the contracting of operations of the Central Bank Rediscount shall observe: I - In operations of up to 1 (one) day, dealt with in item I of art. 3 of the aforementioned Circular No. 2.965: a) the financial institution shall request the operation from the Department of Banking Operations (DEBAN), where it is under jurisdiction, informing the intended amount and the characteristics and quantity of the securities, observing the unit prices used by the Central Bank of Brazil in its repurchase operations, disclosed daily by the Department of Open Market Operations (DEMAB); and b) once the operation is authorized, its formalization shall be carried out by registration in the Special System of Settlement and Custody (SELIC), and the financial institution and the Department of Banking Operations (DEBAN) shall adopt all procedures, in accordance with the regulation of that System and as per Communiqué No. 7.279, of 11 February 2000. II - In operations of up to 15 (fifteen) days and of up to 90 (ninety) days, dealt with in items II and III of art. 3 and art. 4 of the aforementioned Circular No. 2.965, the financial institution shall request the operation from the Department of Banking Operations (DEBAN), where it is under jurisdiction, presenting the required documentation, the intended amount and the itemized list of the securities, credits and receivables subject to the operation, it being clarified that: a) operations involving assets registered and traded in the environment of clearing and custody chambers shall be registered therein; b) when involving assets without registration in a clearing and custody chamber, the itemized list shall be accompanied by a file on electronic media, containing at least the following information: - type of credit; - CPF/CNPJ and name of the debtor; - nominal and effective annual interest rates; - composition of the rate - adjustment index and interest rate, if applicable; - date of contracting; - maturity date; - amount of the contracting; - present value of the credit on the date of the proposal; - payment flow in the currency; and - risk classification according to Resolution No. 2.682, of 21 December 1999. c) once the operation is authorized, its formalization shall take place in specific documents, registration in the clearing and custody chambers and, when dealing with operations of up to 90 (ninety) days, dealt with in items III of art. 3 and II of art. 4 of the aforementioned Circular, and in the other operations involving assets without registration and trading in clearing and custody chambers, by executing a specific contract. 2. This Circular Letter enters into force on the date of its
publication. Brasilia, 11 February 2000. Department of Banking Operations Luis Gustavo da Matta Machado Head of Unit