Circular No. 1260 - SFH Financial Agents - FCVS Coverage - Financing Contracts for Production Signed Before Resolution 1361 of July 30, 1987 - Amendment of Item 17 of Circular 1214 of August 4, 1987

CIRCULAR NO. 001260

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

We communicate that the Board of Directors of the Central Bank of Brazil, in a session held on 25.11.87, in view of the provisions of item XXII of Resolution No. 1,361, of 30.07.87, decided to amend item 17 of Circular No. 1,214, of 04.08.87, which shall now read as follows:

"17. In accordance with the provisions of item XXI of the aforementioned Resolution No. 1,361, of 30.07.87, financial agents of the Housing Financial System (SFH) may conclude negotiations that were being developed before the date of publication of the cited normative, including for the purpose of coverage by the Wage Variation Compensation Fund (FCVS), provided that one of the following hypotheses is verified:

a) financing proposal formalized with the financial agent;

b) promise to purchase and sell housing units executed by construction entrepreneurs, linked to a loan made by an institution of the Housing Financial System (SFH), in which the buyers are assured the obtaining of financing for portions of the respective acquisition cost;

c) production financing contracts duly signed."

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

Brasilia-DF, November 27, 1987

Luiz Aranha Corrêa do Lago
Director