Circular Letter No. 3.351

CIRCULAR LETTER No. 003351 ------------------------ Discloses procedures to be observed in the delivery of the contract, corresponding guarantees and in the financial settlement, related to the Communiqués that deal with the rate auction for granting loans in foreign currency by the Central Bank of Brazil In compliance with the provisions of Resolution No. 3.622, of 9 October 2008, amended by Resolutions No. 3.624, of 16 October 2008, and No. 3.633, of 3 November 2008, in Circular No. 3.418, of 4 November 2008 and in the Communiqués that deal with rate auctions for granting loans in foreign currency, the banking institutions winning the bids must observe the following procedures: I - up to two business days prior to the formalization of the loan, the contract referred to in paragraph 6, item IV, subitem 'a' of the Communiqué disclosing the auction, must be delivered in two copies, at the address described below, signed by a representative of the institution, in the form of its bylaws, accompanied by the following documentation: a) bylaws and/or minutes of the institution's assembly; b) power of attorney; c) signature card; and d) certificate proving the regularity referred to in § 5 of art. 195 of the Federal Constitution. Address for delivery of documentation: Central Bank of Brazil Department of International Reserve Operations - Depin Monitoring Consultancy - Comon (Tel.: (61) 3414- 1920, (61) 3414-2607 and (61) 3414-2592) South Banking Sector (SBS) Block 3 Block B - 5th floor - Headquarters Building - Brasília - DF Zip Code 70074-900. II - with regard to guarantees constituted in the form of Advances on Exchange Contracts (ACC) and Advances on Delivered Exchange Bills (ACE): a) the granting of ACC/ACE must be supported by a specific export exchange contract identified with Nature-Group code 57; b) the export exchange operation contracted prior to the disclosure in the RMCCI of Nature-Group code 57 must be amended by 30.11.2008; c) up to one business day prior to the date scheduled for delivery of the signed contract, the declaratory listing of these guarantees must be presented in a magnetic file via PSTAW10, through document L001, following the guidelines described on the Central Bank of Brazil website, address: http://www.bcb.gov.br, area National Financial System/Registration and accounting information/Provision of information to the BC/Mandatory information/Document layouts; and d) the bank contracting the exchange operation dealt with in this item must: 1. promote, through PCAM300 (option 1- Contracting, suboption 7-Registration of Linked Exchange Contracts), the linking of the export exchange contract (Type 1) to the respective sale exchange contract (Type 6) carried out by the Central Bank of Brazil; 2. each export exchange operation (Type 1) that, in whole or in part, is settled, cancelled or written off from its Exchange Position, before the maturity of the loan, implies its replacement, within 5 business days, by operation(s) of an
amount equal to or greater than that; 3. observing the deadline established in item 2 of this subitem, the amount equivalent to the exchange operation that, in whole or in part, is settled, cancelled or written off from its Exchange Position, before the maturity of the loan and that is not replaced must be amortized from the granted loan; 4. the exchange contract(s) that, in whole or in part, replace(s) the operation settled, cancelled or written off from the bank's Exchange Position, must also be linked to the sale exchange contract carried out by the Central Bank of Brazil; and 5. each exchange contract that is fully replaced must have its linking effected in the form of item 1 of this subitem annulled. III - with regard to supplementary guarantees, when they exist: a) the listing of the federal domestic public debt securities registered in the Special Settlement and Custody System (Selic) must be presented in a magnetic file via PSTAW10, through document L002, according to the address described in item II, subitem 'c'. To determine the corresponding amount in Reais and the quantity of securities, the R$/USD selling rate quotation from the Ptax Closing bulletin, disclosed by the Central Bank of Brazil on the date prior to the presentation of the listing, and the unit price accepted by the Central Bank of Brazil in its repurchase operations with the respective securities on the day of presentation of the listing must be considered, respectively; and b) on the same day of the presentation of the listing described in the previous subitem, the financial institution shall transmit a command to Selic for the transfer of the securities from its own free-movement custody account to a specific account of the Central Bank of Brazil 'fiduciary assignment'; c) the financial institution must send an email to sucopdicon.depin@bcb.gov.br, with two business days' notice, to inform the forecast of receipt of coupons and/or amortizations of the securities presented as collateral; and d) in the event of insufficiency in the total value of the guarantees, due to the release of interest or partial/total amortization of securities delivered as collateral, the institution must, on the same day, replenish the guarantees by the amount of the reduction observed, in the form of subitems 'b' and 'c' of this item. IV - at the end of the term established in each of the auctions in question, the banking institution must carry out the effective delivery of the foreign currency corresponding to the difference between the amount sold by the Central Bank of Brazil and that applied in new ACC and/or ACE operations. V - the remittance of foreign currency to be credited to the Central Bank of Brazil, upon early amortization or settlement of the loan, must observe the following payment instruction in USD: PAY TO: BANCO DO BRASIL - NEW YORK (BRASUS33) IN F/O BANCO CENTRAL DO BRASIL (BCBRBRDF) A/C NO. 840390112 VI - the guarantees mentioned in this Circular Letter must observe the
maturity term defined in paragraph 6, item IV, subitem 'b' of the Communication that provides for the auction. 2. This Circular Letter enters into force on the date of its publication. Brasília, 14 November 2008 Department of Operations of the Department of Operations of the International Reserves (Depin) Open Market (Demab) Márcio Barreira de Ayrosa Luiz Donizete Felício Moreira Head Head Department of Information Technology Department of Monitoring of the (Deinf) Financial System and Information Management (Desig) José Antônio Eirado Neto Cornélio Farias Pimentel Head Head