Circular No. 1.279

CIRCULAR N. 001279 ------------------ We inform that the Board of the Central Bank of Brazil, in a session held on 13.01.88, having regard to the provisions of item II of Resolution n. 1.199, of 10.10.86, and in paragraphs 1 of article 1 and sole paragraph of article 5 of the Regulation annexed to the aforementioned Resolution, decided: a) the investments of the Short-Term Investment Funds shall be represented as follows: I - 50% (fifty percent), at minimum, in operations referred to in the Regulation annexed to Resolution n. 1.088, of 30.01.86, for settlement within a maximum period of 28 (twenty-eight) days, counted from the date of assumption of the commitment, provided that at least 40% (forty percent) of the Fund's investments shall be backed by Treasury Financial Bills and/or Central Bank Bills, and 10% (ten percent), at maximum, in operations backed by the other securities provided for in the aforementioned Regulation; II - 30% (thirty percent), at minimum, in Treasury Financial Bills and/or Central Bank Bills; III - 10% (ten percent), at maximum, in bank deposit certificates and/or bills of exchange accepted by a credit, financing and investment company, traded in bearer form, with a term between issuance and maturity equal to or greater than 90 (ninety) days, duly registered with the Central Custody and Financial Settlement of Securities (CETIP); and IV - 10% (ten percent), at maximum, in federal, state and municipal public debt securities; b) the Short-Term Investment Funds may, regardless of the limit referred to in article 10 of the Regulation annexed to the aforementioned Resolution n. 1.199/86, 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; c) the redemption of shares of the aforementioned Funds shall be processed on the 1st (first) business day following the receipt of the request. 2. The Short-Term Investment Funds shall have until 01.03.88 to adapt their portfolios to the limits referred to in item "a" of the previous item. 3. This Circular shall enter into force on the date of its publication, and Circular n. 1.234, of 22.09.87, is hereby revoked. Brasília-DF, 14 January 1988 Luiz Aranha Corrêa do Lago Wadico Waldir Bucchi Director Director Alkimar Ribeiro Moura Director