Circular No. 1102 — Lowering Rules Regarding Savings Passbooks, in View of CMN Resolutions Nos. 1,235/86 and 1,236/86

CIRCULAR NO. 001102

To
Real Estate Credit Companies, Savings Banks, and Savings and Loan Associations

We communicate that the Board of the Central Bank, in a session held on this date, in view of the provisions of item IV of Resolutions Nos. 1,235 and 1,236, both dated 30.12.86, decided:

a) The balances of savings accounts, determined in accordance with item III of the aforementioned Resolutions, shall be updated as follows:

I - during the period from December 1986 to February 1987, by the variation of the Consumer Price Index (IPC) or by the yields of the Central Bank Letters (LBC), adopting, month by month, whichever results in a higher value;

II - from 01.03.87, based on the yields produced by the Central Bank Letters (LBC);

b) The yields shall be credited no later than the 4th (fourth) day following the publication of the remuneration index for savings deposits by the Central Bank;

c) The free savings accounts for individuals existing on this date will be automatically converted into monthly yield accounts, observing the following conditions:

I - the conversion will take place during the month of January 1987, on the same day corresponding to that scheduled for the posting of credits in each account;

II - the monetary correction and the interest or dividends, due from the date of the last yield credit until the day immediately preceding the conversion, will be obtained as follows:

1. monetary correction: determined in accordance with Article 12, Paragraphs 1 and 2 of Decree-Law No. 2,284, of 10.03.86, with the wording given to it by Decree-Law No. 2,311, of 23.12.86, and applied to:

1.1 - the arithmetic mean of the minimum monthly balances, in case there has been no withdrawal in the last two months of the period, for accounts whose quarter began in October 1986, or in the last month of the period, for accounts whose quarter began in November 1986;

1.2 - the minimum balance verified, in case there has been a withdrawal during the last two months of the period, for accounts whose quarter began in October 1986, or during the last month of the period, for accounts whose quarter began in November 1986;

1.3 - the minimum balance verified, in case of accounts whose quarter began in December 1986;

2. interest or dividends: calculated according to a quarterly interest rate of 1.5% (one and five-tenths percent), proportional to the elapsed months, on the same balance used for the calculation of monetary correction, previously increased by the value of this correction;

d) The yields, calculated according to the criteria established in the previous clause, shall be credited on the date of automatic conversion, observing the provisions of clause "b";

e) In the case of savings accounts closed between the posting date and the day of its respective effective implementation, the depositor's right to the aforementioned credit is assured;

f) In the cases of accounts opened on the 29th (twenty-nine), 30th (thirty), and 31st (thirty-first) days, the counting of the elapsed month or quarter shall always begin on the first day of the following month;

g) For the purposes of the provisions of the cited Resolution, only Saturdays, Sundays, and banking holidays are not considered business days;

h) Deposits made by means of checks, whenever honored in the first clearing and regardless of the time required for its realization, must be considered, for the purposes of this Circular, from the day of the deposit;

i) The remaining regulatory provisions regarding free savings accounts are maintained, insofar as they do not conflict with those of this Circular.

2. The documents and information that the financial agents of the Brazilian Savings and Loan System were obliged to provide to the extinct National Housing Bank (BNH) shall, maintaining the deadlines fixed for their sending, continue to be sent to the same locations, until this Agency issues norms regarding it, and the flow of information shall be regularized until 31.01.87.

3. This Circular shall enter into force on the date of its publication.

Brasília-DF, December 30, 1986

Luiz Carlos Mendonça de Barros
Director