Circular Letter No. 2609 — Regulates the application of fines arising from the registration of data in the System for the Registration of Credit Operations with the Public Sector - CADIP

CIRCULAR LETTER No. 002609

Regulates the application of fines arising from the registration of data in the System for the Registration of Credit Operations with the Public Sector - CADIP

In view of the provisions of Art. 5 of Resolution No. 2,215, of 11.29.95, we communicate that as of 01.01.96, pecuniary fines will be applied, observing the following:

I - the following constitute events giving rise to fines: delay and incorrect registration of data for each credit operation carried out with a public-sector body or entity;

II - the calculation base for determining the fines is given by the number of days of delay in registering the data or the number of days in which it remained incorrect in the System, counting only business days;

III - the maintenance of an incorrect registration in the system will be treated, for the purpose of determining and collecting fines, as late information, for the period of time in which, in that condition, it has remained in the system's database;

IV - fines will be individualized by events, which consist of the determination of the irregularity committed in each information module of each credit operation registered in the system, in accordance with the criteria established in Art. 3 of Circular 2,544, of 02.23.95;

V - fines will be determined monthly, by the fifth business day of each month, based on the fine events occurring in the previous month, with the event that presents, as a result of the calculation base, the highest number of business days prevailing for the purpose of calculating the fine to be applied in that assessment month;

VI - the data registered in each module of the system are classified into three groups of variables, according to the incidence of fines:

a) Closed Variables: those that cannot be modified after being registered in the System;

b) Open Variables - those that can be altered at any time, not giving rise to the application of a pecuniary fine.

c) Variables Subject to Fines - those that, once altered, will give rise to the application of a pecuniary fine.

VII - the list of variables classified in accordance with the description in the previous item is presented in the Annex to this Circular Letter;

VIII - the initial reference date for establishing the calculation base is 01.01.96; therefore, events giving rise to fines that occurred prior to that date will enjoy amnesty, for the purpose of calculating pecuniary fines;

IX - financial institutions will be informed, by means of an electronic debit notification mail (Debit Notice), regarding the amount of the fine and the date on which the debit will be made to the bank reserve account;

X - financial institutions will have access to the fine statement, individualized by credit operation, with the following details:

a) identification of the operation, characterized by the Bacen Number that the operation received when registered in the System;

b) identification of the information module, characterized by the name of the module as set out in Art. 3 of Circular 2,544;

c) number of days of delay, determined in the event considered in the calculation base;

1. amount of the fine determined per operation;

2. limit of the fine per operation, in accordance with subitem b of Art. 2 of CMN Resolution 2,215, of 11.29.95:

3. amount of the fine to be applied in the assessment period, considering the regulatory limit established for each credit operation;

4. limit of the fine per financial institution, in accordance with subitem c of Art. 2 of CMN Resolution 2,215, of 11.29.95:

5. amount of the fine to be applied, per assessment period, considering the regulatory limit established for each financial institution;

XI - fines will be debited directly from the bank reserves of the financial institutions, on the 15th day of the assessment month or on the immediately following business day when the 15th coincides with a non-business day;

XII - financial institutions will have 15 days, counted from the date of issuance of the electronic debit notification mail, to, in the first instance, file appeals with the Regional Unit contesting the pecuniary fine applied, which must be accompanied by:

a) copy of the electronic debit notification mail informing the Financial Institution of the Debit Notice;

b) statement of the calculation memory of the fines determined for the reference month, detailed by fine event;

c) reasoning on which the appeal is based, itemized by fine event.

XIII - fine events whose appeals have been upheld will be cancelled and the corresponding amount will be returned to the bank reserve account of the respective financial institution;

XIV - the financial institution may request reconsideration of the application of a fine whose appeal was considered unfounded in the first-instance judgment;

XV - the deadline for filing a request for reconsideration in the second instance is 15 days, counted from the date of issuance of the rejection mail in the first instance;

XVI - fine events whose appeals have been upheld, in a decision on reconsideration appeals, will be cancelled and the corresponding amount will be returned to the bank reserve account of the respective financial institution;

XVII - in cases where the System does not permit the registration of data for a credit operation due to non-recognition of the Borrower's CGC, no fine will be applied for the period in which the restriction persists, and financial institutions must adopt the following procedures:

a) forward a copy of the General Taxpayer Registry or of the Law that created the municipality, depending on the impediment encountered, so that DEDIP arranges the proper adjustment in the System;

b) forward in a timely manner, during the period in which the restriction is maintained, the data required for each module, using for this purpose the format of the respective data entry screens (demonstration screens - PF4/16).

2.         It should be noted that for the registration of operations carried out with the Direct Administration of States, the Federal District, Municipalities and their respective Autarchies, the Protocol number (Pt) relating to the process that was processed at this Central Bank of Brazil will be required.
   
                          Brasilia, December 28, 1995.
   
                          DEPARTMENT OF PUBLIC DEBT
   
                          Jairo da Cruz Ferreira Head
   
                            ANNEX
   

Classification of the variables of each of the System's information modules

MODULE 01 - REGISTRATION INFORMATION:

a) Basic Information:

• Closed Variables:
  . Creditor CGC - 8 digits
  . Borrower CGC - 14 digits
  . Guarantor CGC - 14 digits
  . Modality

• Open Variables:
  . Creditor CGC (Complement) - last 6 digits
  . Creditor Number
  . COSIF
  . Guarantees
  . Legal Authorization
  . Operation Conditions

• Variables Subject to Fines:
  . Operation Amount
  . Principal to be Disbursed
  . Principal to be Paid
  . Currency
  . Contract Date
  . Reference Date
  . Source
  . Rate
  . Period
  . Type
  . Capitalization
  . Indexed
  . Update Index

b) Disbursement Schedule:

• Variables Subject to Fines:
  . No. of Installments
  . Date
  . Principal Amount

c) Payment Schedule:

• Variables Subject to Fines:
  . No. of Installments
  . Date
  . Principal Amount
  . Amount of Charges

MODULE 02 - INFORMATION ON DISBURSEMENT AND PAYMENT MOVEMENTS:

a) Disbursement Movement:

• Closed Variable:
  . Total Disbursement

• Open Variable:
  . Partial Disbursement

• Variables Subject to Fines:
  . No. of Installments
  . Effective Disbursement Date
  . Principal Disbursed
  . Principal Update
  . Total Disbursed
  . Debt Balance after the Movement

b) Payment Movement:

• Closed Variable:
  . Total Installment Payment

• Open Variable:
  . Partial Installment Payment
  . Total Paid

• Variables Subject to Fines:
  . Installment No.
  . Effective Payment Date
  . Principal Effectively Paid
  . Principal Update
  . Monthly Rate
  . Fine/Late Payment Charge
  . Total Paid
  . Debt Balance after the Movement

MODULE 03 - MONTHLY INFORMATION:

• Free Variable:
  . Total for Reconciliation

• Variables Subject to Fines:
  . Debt Balance
  . Average Monthly Debt Balance (*)
  . Average Monthly Rate ()
  . Operation Status
  .Normal Course
  .In Arrears
  .Credit in Liquidation
  .Recorded as Loss
  . Income to be Appropriated
  . Income Appropriated in the Month
  . Amount of Overdue Credit

Note: (*) and () exclusive to Modalities 01, 36 and 41

MODULE 04 - OPERATION STATUS:

a) Compliant

• Closed Variable:
  . Identification of the Borrower's Status

b) Non-compliant

• Closed Variable:
  . Identification of the Borrower's Status

c) Suspended Payment

• Closed Variable:
  . Reason for Suspension