Circular No. 1.109

CIRCULAR N. 001109 ------------------ We inform that the Board of Directors of the Central Bank of Brazil, in view of the provisions of item II of Resolution No. 1.199 of 10.10.86, and in paragraphs 1 of art. 1 and sole paragraph of art. 5 of the Regulation annexed to the aforementioned Resolution, decided to amend items "a" and "b" of Circular No. 1.077 of 13.10.86, which shall henceforth have the following wording: "a) the investments of the Short-Term Investment Funds shall be represented by the securities specified below, in the following proportions: I - 60% (sixty percent), at minimum, in Central Bank Bills; II - the remaining resources, individually or jointly, in: - National Treasury Bills; - Bank Deposit Certificates and Bills of Exchange accepted by a credit, financing and investment company, duly registered with the Central Custody and Financial Settlement of Securities (CETIP), or maintained in book-entry form, provided they are linked to the nominal yield of Central Bank Bills; - Securities forming part of the portfolio of institutions authorized to carry out repurchase operations, linked to repurchase commitments assumed by them, for settlement within a maximum period of 28 (twenty-eight) days counted from the assumption of the commitments; b) the Short-Term Investment Funds may, regardless of the limit referred to in art. 10 of the aforementioned Regulation and subject to the provisions of item "a" of this Circular, invest resources in securities issued, accepted or co-obligated by the managing institution or companies linked to it, provided that the conglomerate to which the managing institution belongs is perfectly identified through the name of the Fund;". 2. This Circular shall enter into force on the date of its publication. Brasília-DF, 14 January 1987 Luiz Carlos de Mendonça de Barros Director