Circular No. 2140 — Compulsory Reserve and Mandatory Cash Requirement on Judicial Deposits — Definition of Rules

CIRCULAR NO. 002140

TO
MULTIPLE BANKS, COMMERCIAL BANKS, SAVINGS BANKS, AND REAL ESTATE CREDIT COMPANIES

ESTABLISHES COMPULSORY RESERVE / MANDATORY CASH REQUIREMENT ON JUDICIAL DEPOSITS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 26.02.92, HAVING REGARD TO THE PROVISIONS OF ART. 10, ITEMS III AND IV, OF LAW NO. 4.595, OF 31.12.64, WITH THE WORDING GIVEN TO IT BY ARTS. 19 AND 20 OF LAW NO. 7.730, OF 31.01.89, AND IN RESOLUTION NO. 1.857, OF 15.08.91, DECIDED:

ART. 1. ESTABLISH COMPULSORY RESERVE / MANDATORY CASH REQUIREMENT ON JUDICIAL DEPOSITS CONSTITUTED WITH MULTIPLE BANKS, COMMERCIAL BANKS, SAVINGS BANKS, AND REAL ESTATE CREDIT COMPANIES.

PARAGRAPH 1. THE COMPULSORY RESERVE / MANDATORY CASH REQUIREMENT REFERRED TO IN THE "CAPUT" OF THIS ARTICLE CORRESPONDS TO 100% (ONE HUNDRED PERCENT) OF THE INCREASE IN RESOURCES FROM JUDICIAL DEPOSITS VERIFIED FROM THE BASE DATE OF THE BALANCE SHEET OF 31.01.92 OR TO 60% (SIXTY PERCENT) OF THE BALANCE SHEET/BALANCE TO WHICH THE POSITION SUBJECT TO CALCULATION REFERS, WHICHEVER IS LOWER.

PARAGRAPH 2. THE COMPULSORY RESERVE AND THE MANDATORY CASH REQUIREMENT APPLY TO THE RESOURCES RECORDED IN THE FOLLOWING GROUPS/SUBGROUPS OF ACCOUNTS OF THE ACCOUNTING PLAN OF THE INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM (COSIF):
A - 4.1.1.70.00-9 - JUDICIAL DEPOSITS;
B - 4.1.5.50.00-7 - JUDICIAL DEPOSITS WITH REMUNERATION, DEDUCTING THE RESPECTIVE EXPENSES TO BE APPORTIONED RECORDED IN THE RUBRIC 4.1.5.95.00-0 - EXPENSES TO BE APPORTIONED ON TIME DEPOSITS.

PARAGRAPH 3. FOR THE PURPOSES OF CALCULATING THE AMOUNT SUBJECT TO PAYMENT, THE BALANCES OF THE BALANCE SHEET OF 31.01.92 MUST BE MONTHLY UPDATED BASED ON THE VARIATION OF THE REFERENCE RATE (TR), INCREASED BY 0.5% (FIVE TENTHS OF A PERCENT) PER MONTH.

ART. 2. THE PAYABILITY OF PAYMENT ON JUDICIAL DEPOSITS MUST BE COMPLIED WITH THROUGH ONE OF THE FOLLOWING ALTERNATIVES:
I - CONSTITUTION OF A CASH DEPOSIT; OR

II - LINKING, IN THE SPECIAL SYSTEM OF SETTLEMENT AND CUSTODY (SELIC), THE FOLLOWING SECURITIES, FROM THE INSTITUTION'S OWN PORTFOLIO AND NOT LINKED TO REPURCHASE AGREEMENTS:
A - TREASURY NOTES;
B - TREASURY BONDS;
C - TREASURY FINANCIAL NOTES;
D - CENTRAL BANK BONDS; OR
E - SECURITIES ISSUED BY THE STATE ITSELF, IN THE CASE OF STATE FINANCIAL INSTITUTIONS.

PARAGRAPH 1. THE AMOUNTS PAID IN CASH, UP TO THE VALUE OF THE PAYABILITY ON THE RESOURCES REFERRED TO IN PARAGRAPH TWO OF ART. 1, WILL BE REMUNERATED BASED ON THE VARIATION OF THE DAILY REFERENCE RATE (TRD), INCREASED BY INTEREST OF 0.5% (FIVE TENTHS OF A PERCENT) PER MONTH.

PARAGRAPH 2. THE SECURITIES LINKED/DISLINKED TO THE COMPULSORY RESERVE / MANDATORY CASH REQUIREMENT ON JUDICIAL DEPOSITS, EXCEPTING STATE SECURITIES, WILL BE CONSIDERED BY THEIR UNIT PRICES USED BY THE CENTRAL BANK IN ITS REPURCHASE OPERATIONS, DAILY PUBLISHED BY THE OPEN MARKET OPERATIONS DEPARTMENT (DEMAB).

PARAGRAPH 3. IN THE CASE OF LINKING A STATE PUBLIC SECURITY, IT WILL BE CONSIDERED BY ITS UNIT PRICE VALID FOR THE COLLATERAL OF REPURCHASE OPERATIONS, OR ITS RESPECTIVE PAR VALUE ON THE SAME DATE, TAKING THE LOWER OF THE TWO VALUES.

PARAGRAPH 4. THE PAYABILITY OF PAYMENT MUST BE COMPLIED WITH EXCLUSIVELY IN CASH OR IN SECURITIES, ONLY ALLOWING THE EXCHANGE OF PAYMENT MODALITY AT THE TIME OF THE ENTRY INTO FORCE OF A NEW PAYABILITY.

PARAGRAPH 5. LINKED SECURITIES MAY BE SUBSTITUTED BY OTHERS WHOSE FINANCIAL VALUE, ON THE DATE OF SUBSTITUTION, CALCULATED ACCORDING TO PARAGRAPHS TWO AND THREE OF THIS ARTICLE, IS EQUIVALENT TO THAT OF THE ORIGINALLY LINKED SECURITIES.

ART. 3. THE COMPULSORY RESERVE AND THE MANDATORY CASH REQUIREMENT CALCULATED EACH MONTH MUST BE PAID TO THE CENTRAL BANK ON THE 15TH (FIFTEENTH) DAY OF THE FOLLOWING MONTH OR THE IMMEDIATELY SUBSEQUENT BUSINESS DAY, IF THE 15TH (FIFTEENTH) IS NOT A BUSINESS DAY.

PARAGRAPH 1. FOR THE PURPOSES OF PROOF OF POSITIONS OF COMPULSORY RESERVE AND MANDATORY CASH REQUIREMENT ON JUDICIAL DEPOSITS, THE FINANCIAL INSTITUTION MUST FILL OUT THE DEMONSTRATIVE OF THE PAYABLE BALANCE - JUDICIAL DEPOSITS, WHOSE CODIFICATION IN THE DOCUMENT CATALOG (CADOC) IS AS FOLLOWS:

SEGMENT CADOC CODE COMMERCIAL BANKS ...... 20.1.3.085-7 MULTIPLE BANKS ...... 26.1.3.085-1 STATE SAVINGS BANKS ...... 36.1.3.085-8 FEDERAL SAVINGS BANK ...... 38.0.3.085-3 REAL ESTATE CREDIT COMPANIES ...... 83.1.3.085-6.

PARAGRAPH 2. THE DEMONSTRATIVE REFERRED TO IN THE PREVIOUS PARAGRAPH MUST BE SENT, ACCORDING TO THE JURISDICTION OF THE FINANCIAL INSTITUTION, TO THE CENTRAL BANK/BANKING OPERATIONS DEPARTMENT (DEBAN), IN BRASÍLIA (DF), OR TO THE RESPECTIVE REPRESENTATION IN A REGIONAL DELEGACY, BY THE BUSINESS DAY PRIOR TO THE ADJUSTMENT OF THE POSITION.

PARAGRAPH 3. THE FINANCIAL INSTITUTION THAT DELAYS THE DEMONSTRATIVE AND/OR COMES TO SUBSTITUTE IT AFTER THE DATE OF ADJUSTMENT OF EACH POSITION INCURS THE PAYMENT OF A MONETARY PENALTY TO BE CALCULATED ON THE EVENTUAL DEFICIENCY IN PAYMENT.

PARAGRAPH 4. THE FINANCIAL INSTITUTION THAT, OPTING TO LINK SECURITIES, DOES SO IN AN AMOUNT LOWER THAN THE PAYABILITY IS SUBJECT TO THE SAME PENALTY.

PARAGRAPH 5. THE MONETARY PENALTY WILL APPLY TO THE DEFICIENCIES VERIFIED AND WILL BE CALCULATED, UNTIL THE DATE OF ITS REGULARIZATION, TAKING AS A BASE THE AVERAGE ADJUSTED RATE OF ALL FINANCING OPERATIONS REGISTERED IN THE SPECIAL SYSTEM OF SETTLEMENT AND CUSTODY (SELIC), INDEPENDENTLY OF THE CHARACTERISTICS OF THE SECURITIES, INCREASED BY INTEREST OF 30% (THIRTY PERCENT) PER YEAR, REDUCED BY THE VARIATION OF THE DAILY REFERENCE RATE (TRD) IN THE PERIOD, CONSIDERING THE NUMBER OF BUSINESS DAYS, AND IS DUE ON THE FOLLOWING BUSINESS DAY.

PARAGRAPH 6. THE FACTORS RELATIVE TO THE AVERAGE ADJUSTED RATE AND THE DAILY REFERENCE RATE (TRD) CAN BE OBTAINED DIRECTLY THROUGH, RESPECTIVELY, THE TRANSACTIONS PTAX880, OPTION 14, AND PTAX860, OPTION 17, OF THE CENTRAL BANK INFORMATION SYSTEM - SISBACEN.

ART. 4. THE FINANCIAL MOVEMENT OF THE PAYMENT PROVIDED FOR IN THIS CIRCULAR WILL BE PROCESSED VIA THE "BANKING RESERVES" ACCOUNT OF THE INSTITUTION HOLDING A COMMERCIAL PORTFOLIO.

PARAGRAPH 1. FINANCIAL INSTITUTIONS SUBJECT TO PAYMENT, NOT HOLDING A COMMERCIAL PORTFOLIO, MUST ENTER INTO AN AGREEMENT WITH A MULTIPLE BANK WITH A COMMERCIAL PORTFOLIO, A COMMERCIAL BANK, OR A SAVINGS BANK FOR THE PURPOSES OF THE FINANCIAL MOVEMENT PROVIDED FOR IN THE "CAPUT" OF THIS ARTICLE.

PARAGRAPH 2. THE AGREEMENT REFERRED TO DOES NOT IMPLY ANY RESPONSIBILITY OF THE HOLDER OF THE "BANKING RESERVES" ACCOUNT TOWARDS THE CENTRAL BANK, EXCEPT IN THE CASE WHERE THE ENTRIES TRANSITED BY IT ARE NOT CHALLENGED UNTIL THE FIRST SUBSEQUENT BUSINESS DAY OF THE EVENT.

ART. 5. FINANCIAL INSTITUTIONS THAT DO NOT HAVE DEPOSITS OF THIS SPECIES ARE EXEMPT FROM SENDING THE DEMONSTRATIVE.

ART. 6. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION, PRODUCING EFFECTS FROM THE PAYMENT OF 16.03.92, CALCULATION BASE OF 28.02.92.

BRASÍLIA (DF), FEBRUARY 26, 1992

PEDRO LUIZ BODIN DE MORAES GUSTAVO JORGE LABOISSIÈRE LOYOLA DIRECTOR DIRECTOR

DOCUMENT IDENTIFICATION

01 CADOC CODE	02 ORDER NUMBER

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COMPULSORY DEPOSIT / MANDATORY CASH REQUIREMENT DEMONSTRATIVE OF THE PAYABLE BALANCE - JUDICIAL DEPOSITS

POSITION

|03 |

INSTITUTION IDENTIFICATION

04 NAME:	05 CGC
06 AGREEMENT HOLDER:

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CALCULATION OF THE BASE

07 JUDICIAL DEPOSITS ON THE BASE DATE OF 31.01.92
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08 FIELD 07 UPDATED UNTIL THE POSITION (TR+0.5% P.M.)
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09 BALANCE OF VALUES SUBJECT TO PAYMENT ON THE BASE
DATE (4.1.1.70.00-9 + 4.1.5.50.00-7 MINUS THE
RESPECTIVE EXPENSES TO BE APPORTIONED RECORDED IN
4.1.5.95.00-0).
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CALCULATION OF PAYABILITY
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10 PAYABLE IN POSITION: FIELD 9 - FIELD 8
(FILL ONLY IF POSITIVE)
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11 PAYMENT LIMIT (60% OF FIELD 9)
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12 VALUE TO BE KEPT PAID: FIELD 11 OR FIELD 10
(LOWER OF THE TWO FIELDS)
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COMPLIANCE WITH PAYABILITY (CHECK WITH X)
13 PAYMENT IN CASH ( )
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14 LINKING OF FEDERAL PUBLIC SECURITIES IN SELIC ( )
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15 LINKING OF STATE SECURITIES IN SELIC ( )
(ONLY FOR STATE FINANCIAL INSTITUTIONS)
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DECLARATION
THE SIGNATORIES OF THIS DOCUMENT TAKE RESPONSIBILITY FOR THE VERACITY
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OF THE ELEMENTS AND DATA CONTAINED IN IT AND FOR THE TOTAL COMPATIBILITY
OF THE DECLARED POSITIONS WITH THE RECORDS OF THE INSTITUTION, AUTHORIZING
THE DEBIT OF THE VALUE RECORDED IN FIELD 12, IN THE BANKING RESERVES ACCOUNT
OF THE BANK: ...... ......
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16 SIGNATURE, NAME AND POSITION
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18 SIGNATURE, NAME AND POSITION
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20 PLACE AND DATE

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