Circular No. 1112 - Brazilian Savings and Loan System (SBPE) - Real Estate Financing. Resolution 1221 of November 24, 1986 - Complementary Norms. Direction of the Application of Resources from Savings Deposits

CIRCULAR NO. 001112

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

We inform you that the Board of Directors of the Central Bank of Brazil, in a session held on this date, decided that the application of resources in housing financing, as provided for in item "b" of item II of Resolution No. 1,221, of November 24, 1986, shall be destined for financing for:

a) acquisition or construction of properties with a sale value greater than that established in Circular No. 1,110, of January 21, 1987;

b) acquisition or construction of properties in municipalities other than the borrower's domicile;

c) entrepreneurs in the construction of housing units not intended for sale by the Housing Financial System;

d) renovation or expansion of housing properties;

e) acquisition, construction, or renovation of housing properties with the guarantee of another property belonging to the borrower;

f) acquisition, linked to housing developments, of equipment intended for urban infrastructure.

2. The financings referred to in the previous item shall be carried out under the following conditions:

a) with mortgage guarantee;

b) they shall not have coverage from the Wage Variation Compensation Fund (FCVS);

c) with financial charges agreed upon between the contracting parties;

d) with contribution to the Housing Assistance Fund - FUNDHAB, when required in accordance with current regulations.

Brasilia-DF, January 21, 1987

Luiz Carlos Mendonça de Barros
Director