Circular No. 1336 — Establishes the Bankers Acceptances Market and the Bankers Acceptances Liquidity Program (PLABAN)

CIRCULAR NO. 001336

To
Commercial Banks

We communicate that the Board of Directors of the Central Bank, having regard to the provisions of Resolution No. 1,502, of July 28, 1988, has decided to issue the following norms necessary for the establishment of the market for bankers acceptances and the Bankers Acceptances Liquidity Program (PLABAN).

2. Credit operations referred to in item I of Resolution No. 1,502 may only be guaranteed by the pledge of Deposit Receipts/"Warrants", relating to coffee, corn, and soy stored in the States of Minas Gerais, São Paulo, Paraná, Santa Catarina, and Rio Grande do Sul, provided that the following stages of the products are observed:

a) raw coffee, in beans, processed, type 7, up to better;

b) corn in grains;

c) soy in grains.

3. Since the certainty of the quality and integrity of the guarantee is of primordial importance for the tranquility of the operations carried out, inspections must be promoted, under the responsibility of the commercial banks accepting the bills of exchange, on the products given as collateral.

4. For the purposes of the provision in item VIII, letter "e", of Resolution No. 1,502, a link between the borrower and the warehouse of the product is configured whenever any of the following hypotheses occur, individually or cumulatively:

a) when there is shareholding participation equal to or greater than 10% (ten percent) between the depository and the depositor of the product;

b) when any administrator or shareholder of one participates with 10% (ten percent) or more of the capital of the other;

c) in the case where one or more elements appear as administrators of both;

d) when the depositor is an administrator or employee of the depository;

e) in the case where the depository and the depositor of the product belong to the same economic group.

5. Accreditation to the Bankers Acceptances Liquidity Program (PLABAN) shall be made through the signing of a revolving credit opening contract, to be executed between the Central Bank and the commercial bank.

6. For the purposes and effects of the provision in PLABAN, the commercial bank will be considered as a whole, comprising the headquarters and branches.

7. The operational limit of each bank for the operations in question will be determined by the Department of Banking Operations (DEBAN), according to the availability of the Program.

8. The use of credit must be made through presentation, by the commercial bank, of a proposal letter addressed to the Central Bank, accompanied by a promissory note issued by it.

9. The credit granted will be equivalent, at most, to the value of the financing that gave rise to the bill of exchange given as collateral for the operation, which will be blocked at CETIP through double command (Central Bank/commercial bank).

10. As security for the responsibilities arising from the use of the credit, the commercial bank will give to the Central Bank, as collateral, the respective bill of exchange. If the accepting bank is the beneficiary itself, it must also pledge the credit rights emerging from the financing contract.

11. The operations of this kind will be subject to the costs obtained by applying the factor (1+x)(1+y), where "x" is the average effective nominal rate calculated in the daily negotiation of bankers acceptances registered at the Central Custody and Financial Settlement Center (CETIP) and "y" is a fixed rate to be defined by the Board of the Banking Area of the Central Bank and published by the Department of Banking Operations (DEBAN). The total cost referred to in this item may not be lower than the cost of raising these resources by the Central Bank.

12. The period for using the resources will comprise the period between the date of the credit and the day before the maturity of the respective bill of exchange.

13. All movement of resources originating from the operations in question - including debit of operational and/or additional costs - will take place through debits or credits in the "Bank Reserves" account maintained by the commercial bank with the Central Bank.

14. At the maturity of the operation, the value of the principal, plus the corresponding costs, will be debited to the same "Bank Reserves" account, without fail.

15. Upon finding any non-compliance with the norms governing bankers acceptances, the accepting commercial bank will incur a pecuniary penalty corresponding to 30% (thirty percent) per year, calculated on the amount of the bill of exchange and for its entire period of validity, and the accepting bank may also be prevented from operating in PLABAN.

16. The program in question does not ensure coverage for eventual risks inherent to credit operations represented by bills of exchange.

17. This Circular will enter into force on the date of its publication, and the Bankers Acceptances Liquidity Program (PLABAN) will begin 60 (sixty) days after that date.

Brasília-DF, July 28, 1988

Wadico Waldir Bucchi Keyler Carvalho Rocha Director Director

Hélio Ribeiro de Oliveira
Director