Circular No. 1944 — Regulates the Issuance of Economic Development Bonds (TDE) under Article 31 of Law No. 8,177 of March 1, 1991

CIRCULAR NO. 001944

REGULATES THE ISSUANCE OF ECONOMIC DEVELOPMENT BONDS - TDE, AS PROVIDED FOR IN ART. 31 OF LAW NO. 8,177, OF MARCH 1, 1991.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING HELD ON APRIL 17, 1991, IN VIEW OF THE PROVISIONS OF ART. 31, PARAGRAPH 2, OF LAW NO. 8,177, OF MARCH 1, 1991, AND ART. 3 OF PORTARIAN NO. 190, OF MARCH 27, 1991, OF THE MINISTRY OF ECONOMY, FINANCE AND PLANNING, HAS DECIDED:

ART. 1. THE ECONOMIC DEVELOPMENT BONDS - TDE PROVIDED FOR IN ART. 31 OF LAW NO. 8,177, OF MARCH 1, 1991, ISSUED BY MULTIPLE BANKS WITH COMMERCIAL OR INVESTMENT PORTFOLIOS, COMMERCIAL BANKS, INVESTMENT BANKS, DEVELOPMENT BANKS, AND ECONOMIC SAVINGS INSTITUTIONS (CAIXAS ECONÔMICAS), SHALL HAVE THE FOLLOWING CHARACTERISTICS:

A - FORM: REGISTERED;

B - PAR VALUE: MULTIPLE OF CR$ 1,000.00 (ONE THOUSAND CRUZEIROS);

C - REMUNERATION: REFERENCE RATE - TR;

D - OFFERING CONDITIONS: PLACEMENT, THROUGH FINANCIAL INSTITUTIONS AND INSTITUTIONS PART OF THE DISTRIBUTION SYSTEM FOR BONDS AND SECURITIES, TO INSTITUTIONAL INVESTORS, INDIVIDUALS, AND LEGAL ENTITIES IN GENERAL;

E - REDEMPTION TERM: COMPATIBLE WITH THE FINANCIAL SCHEDULE OF THE PROJECTS, OBSERVING A MINIMUM OF 1 (ONE) YEAR.

PARAGRAPH 1. THE ISSUANCE OF TDE SHALL OCCUR EXCLUSIVELY IN BOOK-ENTRY FORM, THROUGH REGISTRATION OF THE RESPECTIVE CREDIT RIGHTS IN THE REGISTRATION AND FINANCIAL SETTLEMENT SYSTEM FOR BONDS ADMINISTERED BY THE CENTRAL CUSTODY AND FINANCIAL SETTLEMENT OF BONDS - CETIP.

PARAGRAPH 2. THE TRANSFER OF TDE SHALL BE PROCESSED THROUGH REGISTRATION OF THE ASSIGNMENT OF THE CORRESPONDING CREDIT RIGHTS IN THE SYSTEM REFERRED TO IN THE PREVIOUS PARAGRAPH.

ART. 2. THE FINANCIAL AGENT ISSUING TDE MUST KEEP AVAILABLE TO THE CENTRAL BANK DOCUMENTS THAT PROVE THE DELIVERY OF RESOURCES TO THE BENEFICIARY COMPANY.

ART. 3. THE FINANCIAL AGENT MUST REQUIRE FROM THE BENEFICIARY COMPANY PROOF OF THE USE OF RESOURCES IN THE EXECUTION OF THE PROJECT.

PARAGRAPH 1. IN THE CASE OF RESOURCES ORIGINATING FROM A CONSORTIUM, IT IS THE RESPONSIBILITY OF THE LEADING FINANCIAL AGENT TO REQUIRE THE PROOF REFERRED TO IN THIS ARTICLE.

PARAGRAPH 2. IN THE EVENT OF IRREGULARITIES IN THE EXECUTION OF THE PROJECT OR IN THE APPLICATION OF RESOURCES, THE FINANCIAL AGENT MUST DEMAND THE EARLY SETTLEMENT OF THE FINANCING, NOTIFYING THE NATIONAL BANK FOR ECONOMIC AND SOCIAL DEVELOPMENT - BNDES OR THE BANK OF THE NORTHEAST OF BRAZIL S.A. - BNB, AS THE CASE MAY BE.

ART. 4. FINANCIAL AGENTS MUST KEEP THE RESOURCES RAISED, VIA THE ISSUANCE OF TDE, FULLY APPLIED IN THE FINANCING OF PROJECTS WITHIN THE SCOPE OF THE INDUSTRIAL COMPETITIVENESS PROMOTION PROGRAM.

PARAGRAPH 1. IF INSUFFICIENCY IN THE ALLOCATION OF RESOURCES IS VERIFIED, THE DIFFERENCE SHALL BE SUBJECT TO DEPOSIT AT THE CENTRAL BANK.

PARAGRAPH 2. THE DEPOSIT REFERRED TO IN THE PREVIOUS PARAGRAPH SHALL BE REMUNERATED BY THE REFERENCE RATE - TR.

PARAGRAPH 3. THE CENTRAL BANK, APPROPRIATELY, WILL DISCLOSE A NORM PROVIDING FOR THE SYSTEMATIC MONITORING OF THE DESTINATION OF RESOURCES UNDER THE TERMS OF THIS ARTICLE, INCLUDING WITH A VIEW TO COMPLIANCE WITH THE PROVISIONS OF ART. 37 OF LAW NO. 8,177, OF MARCH 1, 1991.

ART. 5. PROJECT FINANCING OPERATIONS WITHIN THE SCOPE OF THE INDUSTRIAL COMPETITIVENESS PROMOTION PROGRAM ARE SUBJECT TO THE PROVISIONS OF ART. 34 OF LAW NO. 4,595, OF DECEMBER 31, 1964.

ART. 6. NON-OBSERVANCE OF THE PROVISIONS OF THIS CIRCULAR SHALL BE CONSIDERED A SERIOUS OFFENSE, SUBJECTING THE OFFENDING INSTITUTION AND ITS ADMINISTRATORS TO THE PENALTIES PROVIDED FOR IN ART. 44 OF THE SAID LAW NO. 4,595.

ART. 7. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), APRIL 18, 1991

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR