Circular No. 1111 — Complementary Norms to Resolution No. 1221 of November 24, 1986 — Direction of Application of Resources from Savings Deposits

CIRCULAR NO. 001111

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

We communicate that the Board of Directors of the Central Bank of Brazil, in a session held on this date, decided to issue the following complementary norms to Resolution No. 1,221, of November 24, 1986.

2. The following operational modalities may compose the operations of the free range, as referred to in item "c" of item I of the aforementioned Resolution:

a) working capital financing for companies producing and distributing construction materials of interest to the Housing Finance System, through credit opening contracts;

b) working capital financing for incorporating companies, through credit opening contracts guaranteed by pledge of promissory notes issued by third parties in favor of the financed company, observing the provisions of item "c" of item V of Resolution No. 386, of July 21, 1976;

c) acquisition of federal, state, and municipal public debt titles, and of the Central Bank of Brazil;

d) acquisition of credit rights from other financial institutions;

e) real estate financial leasing, concluded with the seller of the property itself, in accordance with Article 15 of the Regulation annexed to Resolution No. 980, of December 13, 1984, of the National Monetary Council;

f) acquisition of credit rights from financial leasing contracts;

g) interbank deposits referred to in Resolution No. 1,111, of March 19, 1986;

h) mortgage loans, understood as the raising of resources guaranteed by a mortgage on real estate.

Brasília-DF, January 21, 1987

Luiz Carlos Mendonça de Barros
Director