Circular No. 220

CIRCULAR N. 000220 ------------------ To Banking Establishments We inform you that the National Monetary Council, in a session held on this date, in view of the provisions of art. 4, item VII, of Law No. 4.595, of 31 December 1964, decided to maintain the option for banking establishments to assign to legal entities, under special contract, the performance of the functions of correspondents, which shall be limited to the collection of instruments and the execution, active or passive, of payment orders in the name of the contracting party, with other operations prohibited, including the granting of loans and the taking of deposits - except as regards the permission contained in item IV of Resolution No. 244, of 16 January 1973. Such contracting shall not require authorization, but must nevertheless be communicated to the Central Bank of Brazil. 2. The balances presented in the accounts of "CORRESPONDENTES NO PAÍS" must be covered, at most, monthly, in accordance with a prior agreement between the interested parties. Brasília-DF, 15 October 1973 Luiz de Carvalho e Mello Filho Director