Circular No. 1150 — Brazilian Savings and Loan System (SBPE) — Establishes that Mortgage Notes are Privative to Institutions Granting Housing Finance with Resources of the Housing Finance System, in Non-Endorsable Nominative Form, with the Option to Maintain...

CIRCULAR NO. 001150

We communicate that the Board of Directors of the Central Bank of Brazil, having regard to the provisions of Articles 25 and 27 of Decree-Law No. 2,287 of July 23, 1986, has decided that the mortgage notes referred to in Resolution No. 1,283 of March 20, 1987, may be issued by economic savings banks, real estate credit societies, and savings and loan associations.

2. The minimum period to be observed between the issuance and redemption dates of the mortgage notes shall be 1 (one) year.

3. In calculating the operational limit referred to in item "a" of clause II of Resolution No. 1,221 of November 24, 1986, the following procedure shall be adopted:

a) the balance of investments by agents in mortgage notes with a term equal to or greater than 5 (five) years shall be calculated as housing financing, up to 30% (thirty percent) of the required amount;

b) the balance of mortgage note issuances shall be subtracted from housing financing.

4. Additionally, the Board of Directors of the Central Bank has decided that free-range operations referred to in item "c" of Item I of Resolution No. 1,221 of November 24, 1986 — governed by Circular No. 1,111 of January 21, 1987 — may be composed with the acquisition of mortgage notes issued by other financial agents.

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

Brasília-DF, March 24, 1987

Luiz Carlos Mendonça de Barros
Director