Circular Letter No. 3.393

CIRCULAR LETTER No. 003393 ------------------------ Discloses procedures for the submission of the foreign currency loan agreement and the corresponding documents and guarantees. Resolution No. 3.622, of 09 October 2008, amended by Resolutions No. 3.624, of 16 October 2008, No. 3.633, of 3 November 2008, No. 3.683, of 29 January 2009 and No. 3.691, of 23 March 2009, and in Circular No. 3.418, of 4 November 2008, amended by Circular 3.444, of 25 March 2009. In compliance with the provisions of the above-mentioned regulations, banking financial institutions must deliver to the address described below the agreement and the list of guarantees, in two copies, up to two business days prior to the execution of the loan, signed by a representative of the institution, in the form of its bylaws, accompanied by the following documentation: a) updated bylaws and/or minutes of the institution's meeting; b) power of attorney; c) signature card; d) certificate proving the regularity referred to in § 3 of art. 195 of the Federal Constitution; e) signed document containing the payment instruction of the financial institution. Address for delivery of documentation: Banco Central do Brasil Departamento de Operações das Reservas Internacionais - Depin Consultoria de Monitoramento - Comon (Tel.: (61) 3414- 2607, (61) 3414-2592 and (61) 3414-3554) Setor Bancário Sul (SBS) Quadra 3 Bloco B - 5th floor - Ed. Sede - Brasília - DF Cep 70074-900. 2. At any time the institution may send a prior consultation to the Banco Central do Brasil, at the address specified above, related to the required documentation. 3. The institution must deliver, by the business day prior to the date scheduled for delivery of the signed agreement, a list of guarantees denominated or referenced in United States dollars, in a magnetic file via PSTAW10, by means of document L005, following the guidelines described on the Banco Central do Brasil website, address: http://www.bcb.gov.br, area Sistema Financeiro Nacional / Informações cadastrais e contábeis / Prestação de informações ao BC / Informações obrigatórias / Leiautes de documentos. In the course of the loan operation, the financial institution is obliged to resubmit the magnetic file when there is a matured or early amortized guarantee or, at any time, upon determination by the Banco Central do Brasil; 4. With regard to the guarantees referred to in § 3 of Article 2 of Circular No. 3.418, of 2008, the following must be observed: a) advance on foreign exchange contract (ACC) and advance on delivered foreign exchange bills (ACE): the contracting date must be after the auction settlement day, the nature-group 57 must be used and the provisions of item II, subparagraph 'd', of Circular Letter No. 3.352, of 27 November 2008 must be observed; b) advance receipt of exports with a shipment term of up to 360 days: the date informed in field 14 (ENTREGA DOCS:) of the type 1 foreign exchange contract must be after the date of presentation of the
guarantee. Within a maximum period of five business days after the date informed in field 14, the guarantee must be replaced by operation(s) of an amount equal to or greater than that one or the loan must be amortized proportionally; c) advance receipt of exports with a shipment term exceeding 360 days: only the shipments provided for in the RDE/ROF schedule with dates after the date of presentation of the guarantee must be considered. Within a maximum period of five business days after each date provided for in the RDE/ROF for the shipment of the goods, the guarantee must be replaced by operation(s) of an amount equal to or greater than that one or the loan must be amortized proportionally; d) foreign loan, import financing and equipment leasing and rental with registration in the RDE/ROF: only the principal installments provided for in the RDE/ROF payment schedule with maturity dates after the date of presentation of the guarantee must be considered. Within a maximum period of five business days after each date provided for in the RDE/ROF for the payment of principal, the guarantee must be replaced by operation(s) of an amount equal to or greater than that one or the loan must be amortized proportionally; e) import financing without registration in the RDE/ROF (operations contracted with a term of less than 361 days): only the installments provided for in the payment schedule of the import declaration - DI with maturity dates after the date of presentation of the guarantee must be considered. Within a maximum period of five business days after each date provided for in the DI (Import Declaration), the guarantee must be replaced by operation(s) of an amount equal to or greater than that one or the loan must be amortized proportionally; f) equipment leasing and rental without registration in the RDE/ROF (operation contracted with a term of less than 361 days): only the installments with maturity dates after the date of presentation of the guarantee must be considered. Within a maximum period of five business days after the maturity of the guarantee installment, the guarantee must be replaced by operation(s) of an amount equal to or greater than that one or the loan must be amortized proportionally; and g) transfer contracted under the aegis of Resolution No. 2.770, of 30 August 2000: only the installments with maturity dates after the date of presentation of the guarantee must be considered. Within a maximum period of five business days after the maturity of the guarantee installment, the guarantee must be replaced by operation(s) of an amount equal to or greater than that one or the loan must be amortized proportionally. 5. Procedures relating to the delivery of supplementary guarantees, when required: I - the financial institution shall arrange for the constitution of the supplementary guarantee, by the business day preceding the date scheduled for delivery of the signed contract, by pledging federal domestic public debt securities registered
in the Special System for Settlement and Custody (Selic) in a special-movement custody account, to be opened by the Selic Administrator, at the request of the interested institution; II - to determine the corresponding amount in Reais and the quantity of securities, the following must be considered, respectively: the R$/USD selling rate quotation from the Ptax Closing bulletin, disclosed by the Central Bank of Brazil on the date immediately preceding the date of the pledge, and the unit price accepted by the Central Bank of Brazil in its repurchase operations with the respective securities, on the date of the pledge; and III - if, subsequently, there is an insufficiency in the total value of the guarantees initially determined in Reais, whether due to price variation or the release of interest or partial/total amortization of the securities offered as collateral, the institution must, on the same day, restore its total by the amount of the reduction observed. 6. The banking financial institution must make the effective delivery of the foreign currency corresponding to the difference between the amount sold by the Central Bank of Brazil and the amount effectively contracted in the loan operation. 7. The partial or total settlement of the loan must be reported in a SWIFT message, stating the number of the Communiqué, the date of the loan disbursement, and the principal and interest amounts. 8. This Circular Letter enters into force on the date of its publication. Brasília (DF), 22 April 2009 Department of International Reserves Operations - Depin Department of Monitoring of the Financial System and Information Management - Desig Márcio Barreira de Ayrosa Moreira Sidnei Correa Marques Head Head Department of Information Technology - Deinf Department of Open Market Operations - Demab José Antônio Eirado Neto João Henrique de Paula Freitas Simão Head Head