Circular No. 1255 — Extends Permission for Banco do Nordeste do Brasil S/A (BNB), Banco da Amazonia S/A (BASA), and Banco Nacional de Credito Cooperativo (BNCC) to Operate Rural Savings Passbook

CIRCULAR N. 001255

We communicate that the Board of Directors of the Central Bank of Brazil, in a session on 21.10.87, based on Resolution n. 1.188, of 05.09.86, decided:

a) to authorize Banco da Amazonia S.A. - BASA, Banco do Nordeste do Brasil S.A. - BNB and Banco Nacional de Credito Cooperativo S.A. - BNCC to receive rural savings passbook deposits, obeying the norms established for free savings deposits by Resolutions n. 1.235 and 1.236, of 30.12.86, 1.380, of 27.08.87, and by Circulars n. 1.102, of 30.12.86, and 1.221, of 27.08.87;

b) the resources captured in the manner of the previous item will have the following basic direction:

I - 20% (twenty percent) in mandatory reserve to be maintained in federal public debt titles or in Letters of the Central Bank (LBC);

II - 60% (sixty percent) in credit operations for rural investment and others, according to the norms set forth in the Rural Credit Manual (MCR), observed that 10% (ten percent), at minimum, of this percentage, must be applied in irrigation;

c) the remaining resources may be applied in the following operations:

I - acquisitions of titles of federal, state and municipal public debt and of the Central Bank of Brazil;

II - interbank deposits referred to in Resolution n. 1.102, of 28.02.86;

III - loans in general, including from the commercial and industrial portfolios, for a minimum term of 180 (one hundred and eighty) days, in the cases of BNB and BASA; and

IV - loans to rural credit and production cooperatives, for a minimum term of 180 (one hundred and eighty) days, in the case of BNCC.

2. The capture of resources, by means of rural savings passbook deposits, is restricted to the premises of Banco da Amazonia S.A., Banco do Nordeste do Brasil S.A. and Banco Nacional de Credito Cooperativo S.A. that operate in rural credit.

3. The resources captured in the manner of this Circular must be applied in operations that have an update clause linked to the index used in savings deposits, and the interest will be calculated, at minimum, at a level equal to that of capture.

4. Exceptions to this condition will be applications where the Law of Means comes to provide specific resources to cover the cost differential.

5. The percentage of mandatory reserve provided for in item "b" of item 1 of this Circular will be calculated based on the simple arithmetic mean of the balances of captured resources during the last 6 (six) months counted on the base date of its application.

Brasilia-DF, November 17, 1987

Wadico Waldir Bucchi Luiz Aranha Corrêa do Lago Director Director

Helio Ribeiro de Oliveira
Director