Circular No. 2027 — Minimum Capital and Net Worth Limits for Consortium Administrators

CIRCULAR NO. 002027

TO CONSORTIUM ADMINISTRATORS

FIXES MINIMUM LIMITS OF PAID-IN CAPITAL AND NET WORTH FOR CONSORTIUM ADMINISTRATORS, REGULATES ITS UPDATE AND ALTERS PROVISIONS RELATING TO CONSORTIUM OPERATIONS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 27.08.91, BASED ON ART. 33 OF LAW NO. 8.177, OF 01.03.91, DECIDED:

ART. 1. TO FIX THE FOLLOWING MINIMUM LIMITS OF PAID-IN CAPITAL AND NET WORTH FOR CONSORTIUM ADMINISTRATORS:

A - CONSORTIUM ADMINISTRATORS OF MOVABLE GOODS:
CR$ 70,000,000.00 (SEVENTY MILLION CRUZEIROS);

B - CONSORTIUM ADMINISTRATORS OF REAL ESTATE:
CR$ 180,000,000.00 (ONE HUNDRED AND EIGHTY MILLION CRUZEIROS).

SINGLE PARAGRAPH. THE MINIMUM LIMITS OF PAID-IN CAPITAL AND NET WORTH FIXED IN THIS ARTICLE SHALL, FROM 10.01.91, BE UPDATED PERIODICALLY AND BASED ON THE INDEX ESTABLISHED IN ART. 1 OF LAW NO. 8.200, OF 28.06.91.

ART. 2. CONSORTIUM ADMINISTRATORS MUST MEET THE MINIMUM LIMITS OF PAID-IN CAPITAL AND UPDATED NET WORTH BASED ON THE VARIATION OF THE INDEX REFERRED TO IN THE SINGLE PARAGRAPH OF ART. 1, VERIFIED UP TO THE SECOND MONTH IMMEDIATELY PRECEDING THE CURRENT MONTH, ON A MONTHLY BASIS.

SINGLE PARAGRAPH. FOR THE PURPOSES OF THIS ARTICLE, THE VALUES OF PAID-IN CAPITAL, ADDED TO THE CORRESPONDING MONETARY CORRECTION RESERVE, AND NET WORTH ADJUSTED IN THE FORM OF RESOLUTION NO. 1,555, OF 22.12.88, SHALL BE CONSIDERED.

ART. 3. INSUFFICIENCIES OF PAID-IN CAPITAL AND ADJUSTED NET WORTH, EVENTUALLY VERIFIED AS A RESULT OF THE PROVISIONS OF THIS CIRCULAR, SHALL BE ELIMINATED BY 12.31.91.

SINGLE PARAGRAPH. THE PROVISIONS OF THIS ARTICLE APPLY EXCLUSIVELY TO CONSORTIUM ADMINISTRATORS THAT ALREADY HAVE A CERTIFICATE OF AUTHORIZATION AND TO LEGAL ENTITIES WHOSE APPLICATIONS FOR AUTHORIZATION TO ADMINISTER CONSORTIUM HAVE BEEN FILED WITH THE CENTRAL BANK BY THE DATE OF ENTRY INTO FORCE OF THIS CIRCULAR.

ART. 4. THE INITIAL CAPITAL OF CONSORTIUM ADMINISTRATORS MAY ONLY BE PAID IN CURRENT CURRENCY.

PARAGRAPH 1. CAPITAL INCREASES THAT ARE NOT PAID IN CURRENT CURRENCY MAY ONLY RESULT FROM THE INCORPORATION OF RESERVES AND PROFITS, OBSERVING, ALSO, THE PROHIBITION REGARDING THE USE OF REVALUATION RESERVES, PROVIDED FOR IN CIRCULAR NO. 1,964, OF 23.05.91.

PARAGRAPH 2. THE PROVISIONS OF THIS ARTICLE DO NOT APPLY TO APPLICATIONS THAT HAVE BEEN FILED WITH THE CENTRAL BANK BY THE DATE OF ENTRY INTO FORCE OF THIS CIRCULAR.

ART. 5. IT IS PROHIBITED FOR CONSORTIUM ADMINISTRATORS TO PARTICIPATE IN THE CAPITAL OF COMPANIES OF THE SAME SPECIES.

SINGLE PARAGRAPH. CONSORTIUM ADMINISTRATORS THAT ALREADY HAVE A CERTIFICATE OF AUTHORIZATION, AND LEGAL ENTITIES WHOSE APPLICATIONS FOR AUTHORIZATION TO ADMINISTER CONSORTIUM HAVE BEEN FILED WITH THE CENTRAL BANK BY THE DATE OF ENTRY INTO FORCE OF THIS CIRCULAR, MUST ADAPT TO THE PROVISIONS OF THIS ARTICLE BY 12.31.92.

ART. 6. THE CERTIFICATE OF AUTHORIZATION, WHICH WILL HAVE INDEFINITE VALIDITY, IS THE DOCUMENT THAT ENABLES THE ADMINISTRATOR TO OPERATE IN THE CONSORTIUM SYSTEM, OBSERVING THE TERMS, LIMITS, AND CONDITIONS CONTAINED IN IT AND IN THE PLAN REGULATIONS THAT ACCOMPANY IT.

SINGLE PARAGRAPH. THE ALTERATION OF ANY OF THE DATA IN THE CERTIFICATE OF AUTHORIZATION REQUIRES PRIOR APPROVAL FROM THE CENTRAL BANK.

ART. 7. THE VALIDITY OF CERTIFICATES OF AUTHORIZATION ISSUED FROM 03.31.89 ONWARDS IS HEREBY EXTENDED FOR AN INDEFINITE PERIOD, OBSERVING THE TERMS OF RESOLUTION NO. 1,778, OF 12.19.90, AND THE PROVISIONS IN THE SINGLE PARAGRAPH OF THE PREVIOUS ARTICLE.

ART. 8. IF THE DELIVERY OF THE ITEM DOES NOT OCCUR WITHIN THE MAXIMUM PERIOD OF 30 (THIRTY) DAYS AFTER THE DATE OF THE ASSEMBLY, DUE TO THE LACK OF THE SAME IN THE MARKET, THE AWARDED CONSORTIUM MEMBER MAY CHOOSE:

I - FOR AN ITEM OR SET OF ITEMS DIFFERENT FROM THOSE ORIGINALLY STATED IN THE CONTRACT OR OPTION, NEW, OF NATIONAL OR FOREIGN MANUFACTURE;

II - FOR A USED VEHICLE, WITH UP TO 03 (THREE) YEARS OF MANUFACTURE, INCLUDING THE YEAR OF PURCHASE, ACQUIRED THROUGH THE ISSUANCE OF A SALES RECEIPT AND CERTIFICATE OF FUNCTIONING WARRANTY FOR A PERIOD OF 03 (THREE) MONTHS OR 5,000 (FIVE THOUSAND) KILOMETERS, COVERING CHASSIS AND ENGINE; OR

III - FOR THE RECEIPT OF THE CREDIT IN KIND, IN THE OCCURRENCE OF THE PROVISIONS IN ITEM 49 OF ORDINANCE NO. 190, OF 10.27.89.

PARAGRAPH 1. THE ITEMS REFERRED TO IN ITEMS I AND II OF THIS ARTICLE MUST BE OF EQUAL OR HIGHER VALUE THAN THE OBJECT OF THE RESPECTIVE PLAN.

PARAGRAPH 2. IN THE CASE REFERRED TO IN ITEM I, THE OPTION FOR AN AUTOMOBILE MAY ONLY BE EXERCISED BY A PARTICIPANT IN A GROUP DESTINED FOR THE ACQUISITION OF AN ITEM OF THE SAME SPECIES.

PARAGRAPH 3. THE DELIVERY OF THE ITEM TO THE AWARDED CONSORTIUM MEMBER IS CONDITIONED ON THE PAYMENT OF OBLIGATIONS IN DELAY PROVEN TO HAVE OCCURRED AFTER THE AWARD.

ART. 9. NON-OBSERVANCE OF THE PROVISIONS OF THIS CIRCULAR MAY IMPLY SUSPENSION OF THE EXAMINATION OF APPLICATIONS BY THE NON-COMPLIANT ADMINISTRATOR, WITHOUT PREJUDICE TO THE PENALTIES PROVIDED FOR IN LAW NO. 5.768, OF 12.20.71.

ART. 10. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 11. ITEMS 2 AND 63 AND SUBITEM 3.2 OF ORDINANCE NO. 190, OF 10.27.89, ITEM 2 OF ORDINANCE NO. 028, OF 03.05.90, ITEM 1 OF ORDINANCE NO. 281, OF 04.26.91, AND CIRCULAR NO. 1,983, OF 07.04.91, ARE HEREBY REVOKED.

BRASÍLIA (DF), AUGUST 28, 1991

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR