Circular No. 2.695

CIRCULAR No. 002695 ------------------ Establishes conditions for the granting of financial assistance to multiple banks with commercial portfolios, commercial banks and savings banks, as addressed in Resolution No. 2.288, of 20.06.96. The Board of Directors of the CENTRAL BANK OF BRAZIL, based on item V of art. 10 of Law No. 4.595, of 31.12.64, renumbered by virtue of arts. 19 and 20 of Law No. 7.730, of 31.01.89, and on art. 5 of Resolution No. 2.288, of 20.06.96, D E C I D E D: Art. 1 The access to the Liquidity Loan and Special Medium-Term lines shall be made through formal manifestation of the financial institution to the Regional Office of the Central Bank of Brazil where it is subject to jurisdiction, to which all required documentation must be delivered. Art. 2 The use of the Liquidity Loan and Special Medium-Term lines shall be subject to the following conditions: I - Movement: all movement of funds arising from operations, whether for withdrawals or for amortization/settlement, shall be effected by entries in the Banking Reserves account of the financial institution, on the date of the request, with valued entries being prohibited; II - The federal public securities that may be used as collateral for the operations must be mandatorily blocked from movement in the Special Settlement and Custody System (SELIC); III - The financial charges of the aforementioned financial assistance lines shall be capitalized daily, based on the rates in force in the period in which the institution presents a debit balance, and shall be due upon amortizations and settlement of the operation. Art. 3 This Circular enters into force on the date of its publication. Art. 4 The following Circulars are revoked: Nos. 2.455, of 27.07.94, 2.464, of 17.08.94, 2.510, of 30.11.94, 2.618, of 21.09.95, 2.645, of 29.11.95, and 2.653, of 03.01.96. Brasília, 20 June 1996 Francisco Lafaiete de Pádua Lopes Director