Circular No. 1320 — Determines the unavailability of funds in debtors' accounts up to the amount of their outstanding foreign currency debt to Banco do Brasil S/A

CIRCULAR NO. 001320

To
Institutions of the National Financial System

We inform you that the Board of Directors of the Central Bank of Brazil, in a session held on 08.06.88, in view of the provisions of Article 2 of Decree-Law No. 2,169, of 29.10.84, decided that:

a) it will determine the unavailability of funds existing or that may enter the accounts of debtors, up to the amount of their debt to Banco do Brasil S/A;

b) within 24 (twenty-four) hours after receipt of the determination, the institutions will notify this Central Bank/Department of Supervision (DEFIS), SAS - Headquarters Building of the Central Bank, 12th floor - Brasília (DF), of the amount made unavailable, by immediate notice to the account holder; and

c) after receipt of the information provided in the previous clause, this Body will determine the transfer to Banco do Brasil S/A of those funds, up to the amount necessary to satisfy the debt, with any excess automatically released.

Brasília-DF, June 9, 1988

José Tupy Caldas de Moura
Director