CIRCULAR No. 002205

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REGULATES THE CONSTITUTION AND OPERATION OF "COMMODITIES" INVESTMENT FUNDS, REFERRED TO IN RESOLUTION No. 1.912 OF 03/11/1992.

WE HEREBY ANNOUNCE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 07/22/1992, HAVING REGARD TO THE PROVISIONS OF ART. 2 OF RESOLUTIONS No. 1.779 OF 12/20/1990 AND No. 1.912 OF 03/11/1992, DECIDED:

ART. 1. TO APPROVE THE ANNEXED REGULATION, WHICH GOVERNS THE CONSTITUTION AND OPERATION OF "COMMODITIES" INVESTMENT FUNDS.

ART. 2. THE FRAMING OF THE INVESTMENTS OF THE RESOURCES OF "COMMODITIES" INVESTMENT FUNDS WITHIN THE LIMITS ESTABLISHED IN ARTS. 10 AND 11 OF THE REGULATION IN QUESTION MUST BE VERIFIED:

I - WITHIN ONE HUNDRED AND EIGHTY DAYS FROM THE DATE OF RESPECTIVE CONSTITUTION, IN THE CASE OF THOSE CONSTITUTED UP TO 09/30/1992;

II - WITHIN NINETY DAYS FROM THE RESPECTIVE CONSTITUTION, IN THE CASE OF THOSE CONSTITUTED FROM 10/01/1992.

SOLE PARAGRAPH. THE INVESTMENT OF FUND RESOURCES IN THE ASSETS REFERRED TO IN ART. 10, ITEM I, OF THE MENTIONED REGULATION, NOT REGISTERED IN THE REGISTRATION AND FINANCIAL SETTLEMENT SYSTEM ADMINISTERED BY THE CENTRAL CUSTODY AND FINANCIAL SETTLEMENT OF SECURITIES - CETIP, IS PERMITTED UNTIL SUCH REGISTRATION IS POSSIBLE.

ART. 3. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), JULY 24, 1992

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR

ANNEXED REGULATION

CHAPTER I

CONSTITUTION AND CHARACTERISTICS

ART. 1. THE "COMMODITIES" INVESTMENT FUND, CONSTITUTED IN THE FORM OF AN OPEN-END FUND, IS A JOINT POOL OF RESOURCES DESTINED FOR INVESTMENT IN A PORTFOLIO OF FINANCIAL ASSETS LINKED TO AGRICULTURAL, LIVESTOCK AND AGRO-INDUSTRIAL PRODUCTS AND OTHER FINANCIAL ASSETS, AS WELL AS FOR CARRYING OUT OPERATIONS IN ORGANIZED FUTURES SETTLEMENT MARKETS INVOLVING CONTRACTS REFERENCED IN THE MENTIONED PRODUCTS.

PARAGRAPH 1. FOR THE PURPOSES OF THIS REGULATION, A CONTRACT TRADED IN AN ORGANIZED FUTURES SETTLEMENT MARKET IS DEFINED AS ONE, IN ANY OF THE OPERATIONAL MODALITIES "FORWARD", "FUTURE" OR "OPTIONS", REGULARLY TRADED ON STOCK EXCHANGES OR COMMODITIES AND FUTURES EXCHANGES, DULY APPROVED BY THE CENTRAL BANK OR BY THE SECURITIES AND EXCHANGE COMMISSION, THE LATTER IN THE EVENT THAT IT IS REFERENCED IN SECURITIES.

PARAGRAPH 2. THE FUND SHALL HAVE AN INDETERMINATE TERM OF DURATION AND ITS NAME, WHICH MAY NOT CONTAIN TERMS INCOMPATIBLE WITH ITS OBJECTIVE, SHALL INCLUDE THE WORD "COMMODITIES".

ART. 2. THE CONSTITUTION OF A "COMMODITIES" INVESTMENT FUND, WITHIN A MAXIMUM PERIOD OF FIVE DAYS FROM ITS OCCURRENCE, SHALL BE THE SUBJECT OF WRITTEN COMMUNICATION TO THE REGIONAL OFFICE OF THE CENTRAL BANK TO WHICH THE ADMINISTERING INSTITUTION IS SUBJECT, WHICH COMMUNICATION SHALL CONTAIN THE NAME OF THE ADMINISTRATOR RESPONSIBLE FOR THE FUND'S OPERATIONS AND BE ACCOMPANIED BY A COPY OF THE CONSTITUTION DOCUMENT.

PARAGRAPH 1. THE CONSTITUTION DOCUMENT, WHICH SHALL BE REGISTERED AT A DEED AND DOCUMENT REGISTRY OFFICE, SHALL REPRODUCE THE ENTIRE TEXT OF THE FUND'S REGULATION AND CONTAIN THE QUALIFICATION OF ITS FOUNDERS.

PARAGRAPH 2. THE CENTRAL BANK MAY, AT ANY TIME, ORDER THE AMENDMENTS IT DEEMS NECESSARY TO BE MADE TO THE FUND'S REGULATION.

ART. 3. THE REGULATION OF THE "COMMODITIES" INVESTMENT FUND, TO WHICH THE UNITHOLDERS MUST ADHERE AT THE TIME OF THEIR ENTRY, SHALL CONTAIN THE FOLLOWING INFORMATION:
I - MANAGEMENT FEE, OR CRITERION FOR ITS FIXATION;

II - OTHER FEES AND/OR EXPENSES;

III - CONDITIONS FOR SUBSCRIPTION AND REDEMPTION OF UNITS;

IV - AVAILABILITY OF INFORMATION TO UNITHOLDERS, AS PER ARTS. 32 TO 35.

SOLE PARAGRAPH. THE FEES, EXPENSES AND TERMS SHALL BE IDENTICAL FOR ALL UNITHOLDERS.

CHAPTER II

ADMINISTRATION

ART. 4. THE ADMINISTRATION OF A "COMMODITIES" INVESTMENT FUND MAY BE EXERCISED BY A MULTIPLE BANK, COMMERCIAL BANK, INVESTMENT BANK, SAVINGS BANK, CREDIT, FINANCING AND INVESTMENT COMPANY, SECURITIES BROKERAGE COMPANY OR SECURITIES DISTRIBUTION COMPANY, UNDER THE SUPERVISION AND DIRECT RESPONSIBILITY OF AN ADMINISTRATOR OF THE INSTITUTION.

SOLE PARAGRAPH. FOR THE PURPOSE OF EXERCISING THE ADMINISTRATION OF THE FUND, THE INSTITUTION MUST BE AUTHORIZED BY THE SECURITIES AND EXCHANGE COMMISSION TO EXERCISE THE ACTIVITY REFERRED TO IN ART. 23 OF LAW No. 6.385 OF 12/07/1976.

ART. 5. THE ADMINISTERING INSTITUTION OF A "COMMODITIES" INVESTMENT FUND, OBSERVING THE LIMITATIONS OF THIS REGULATION, SHALL HAVE THE POWER TO PERFORM ALL ACTS NECESSARY FOR THE ADMINISTRATION OF THE FUND'S PORTFOLIO, AS WELL AS TO EXERCISE ALL RIGHTS INHERENT TO THE ASSETS THAT COMPOSE IT, INCLUDING THE RIGHT TO VOTE AND TO ATTEND AND VOTE IN GENERAL OR SPECIAL MEETINGS.

ART. 6. THE FOLLOWING SHALL BE INCLUDED AMONG THE OBLIGATIONS OF THE ADMINISTERING INSTITUTION OF A "COMMODITIES" INVESTMENT FUND:

I - TO MAINTAIN, AT ITS OWN EXPENSE, UPDATED AND IN PERFECT ORDER, IN ACCORDANCE WITH GOOD ADMINISTRATIVE TECHNIQUE:

A - THE DOCUMENTATION RELATING TO THE FUND'S OPERATIONS;

B - THE REGISTER OF UNITHOLDERS;

C - THE MINUTES BOOK OF GENERAL MEETINGS;

D - THE ATTENDANCE BOOK OF UNITHOLDERS;

E - THE FILE OF INDEPENDENT AUDITOR'S REPORTS;

F - RECORD OF ALL ACCOUNTING FACTS REFERRING TO THE FUND;

II - TO RECEIVE ANY INCOME OR ASSETS OF THE FUND;

III - TO BEAR THE FUND'S ADVERTISING EXPENSES;

IV - TO DISCLOSE, DAILY, IN THE NEWSPAPER(S) REFERRED TO IN ART. 17, ITEM III, THE VALUE OF THE FUND'S NET ASSETS, THE VALUE OF THE UNIT AND THE ACCUMULATED RETURNS IN THE MONTH AND YEAR TO WHICH THE INFORMATION REFERS;

V - TO PROVIDE ANNUALLY TO UNITHOLDERS A RECEIPT FOR INCOME TAX DECLARATION PURPOSES.

ART. 7. THE ADMINISTERING INSTITUTION OF A "COMMODITIES" INVESTMENT FUND SHALL BE PROHIBITED, IN THE SPECIFIC EXERCISE OF ITS FUNCTIONS AND USING THE FUND'S RESOURCES:

I - TO GRANT LOANS OR ADVANCES, OR OPEN CREDITS, UNDER ANY MODALITY;

II - TO PROVIDE SURETY, GUARANTEE, ACCEPTANCE OR CO-OBLIGATE ITSELF IN ANY OTHER FORM, EXCEPT IN THE CASE OF MARGINS IN OPERATIONS CARRIED OUT IN ORGANIZED FUTURES SETTLEMENT MARKETS;

III - TO CARRY OUT OPERATIONS AND TRADE WITH OTHER ASSETS THAN THOSE REFERRED TO IN THIS REGULATION OR THOSE THAT MAY BE AUTHORIZED BY THE CENTRAL BANK;

IV - TO INVEST ABROAD RESOURCES RAISED IN THE COUNTRY;

V - TO ACQUIRE UNITS OF THE FUND ITSELF, OR OF ANY OTHER JOINT FUND THAT IS NOT A FINANCIAL INVESTMENT FUND;

VI - TO SELL FUND UNITS ON INSTALLMENT;

VII - TO PROMISE PREDETERMINED INCOME TO UNITHOLDERS;

VIII - TO MAKE, IN ITS ADVERTISING OR OTHER DOCUMENTS THAT MAY BE PRESENTED TO INVESTORS, PROMISES OF WITHDRAWALS OR INCOME, BASED ON ITS OWN PERFORMANCE, THE PERFORMANCE OF OTHERS OR THAT OF FINANCIAL ASSETS;

IX - TO DELEGATE POWERS TO MANAGE AND ADMINISTER THE FUND, EXCEPT WITH SPECIFIC AUTHORIZATION FROM THE CENTRAL BANK.

ART. 8. THE ADMINISTERING INSTITUTION MAY, BY NOTICE PUBLISHED IN THE NEWSPAPER(S) REFERRED TO IN ART. 17, ITEM III, OR BY MEANS OF A LETTER OR TELEGRAM ADDRESSED TO EACH UNITHOLDER, RESIGN FROM THE ADMINISTRATION OF THE "COMMODITIES" INVESTMENT FUND, AND SHALL BE OBLIGED, IN THE SAME ACT, TO CONVENE A GENERAL MEETING THAT SHALL DECIDE ON ITS REPLACEMENT OR ON THE LIQUIDATION OF THE FUND, OBSERVING THE PROVISIONS OF ART. 25.

SOLE PARAGRAPH. IN THE CASES OF REPLACEMENT OF THE ADMINISTERING INSTITUTION AND LIQUIDATION OF THE FUND, THE RULES IN FORCE ON CIVIL OR CRIMINAL LIABILITY OF ADMINISTRATORS, DIRECTORS AND MANAGERS OF FINANCIAL INSTITUTIONS SHALL APPLY, AS APPLICABLE, INDEPENDENTLY OF THOSE GOVERNING THE CIVIL LIABILITY OF THE ADMINISTERING INSTITUTION ITSELF.

ART. 9. THE ADMINISTERING INSTITUTION OF A "COMMODITIES" INVESTMENT FUND SHALL STIPULATE, AT ITS DISCRETION, REMUNERATION TO BE RECEIVED FOR THE PROVISION OF MANAGEMENT AND ADMINISTRATION SERVICES OF THE FUND.

CHAPTER III

COMPOSITION AND DIVERSIFICATION OF THE PORTFOLIO

ART. 10. THE INVESTMENTS OF THE "COMMODITIES" INVESTMENT FUND SHALL BE REPRESENTED BY:

I - 80%, AT MOST, IN:

A - CREDIT RIGHTS LINKED TO EXPORT CONTRACTS ("EXPORT NOTES") OF AGRICULTURAL, LIVESTOCK AND AGRO-INDUSTRIAL PRODUCTS, OBSERVING THE MAXIMUM OF 15%;

B - "WARRANTS" REPRESENTING DEPOSIT OF AGRICULTURAL, LIVESTOCK AND AGRO-INDUSTRIAL PRODUCTS, PROVIDED THEY ARE GUARANTEED BY A FINANCIAL INSTITUTION;

C - COMMODITY CERTIFICATES, WITH ISSUANCE GUARANTEED BY A FINANCIAL INSTITUTION;

II - 45%, AT MOST, IN:

A - SECURITIES ISSUED BY THE NATIONAL TREASURY OR THE CENTRAL BANK;

B - STATE AND MUNICIPAL PUBLIC DEBT SECURITIES;

C - BANK DEPOSIT CERTIFICATES, BILLS OF EXCHANGE, MORTGAGE BILLS AND DEBENTURES;

D - UNITS OF FINANCIAL INVESTMENT FUNDS; AND

E - PROMISSORY NOTES ISSUED BY JOINT-STOCK COMPANIES, INTENDED FOR PUBLIC OFFERING;

III - 20%, AT MOST, IN SHARES OF PUBLIC COMPANIES ADMITTED TO TRADING ON A STOCK EXCHANGE OR IN A REGULATED OVER-THE-COUNTER MARKET AUTHORIZED BY THE SECURITIES AND EXCHANGE COMMISSION;

IV - 10%, AT MOST, IN GOLD BARS ACQUIRED ON A COMMODITIES AND FUTURES EXCHANGE.

PARAGRAPH 1. THE ASSETS REFERRED TO IN ITEMS I AND II, LETTERS "C" AND "E", MUST BE DULY REGISTERED IN THE REGISTRATION AND FINANCIAL SETTLEMENT SYSTEM ADMINISTERED BY THE CENTRAL CUSTODY AND FINANCIAL SETTLEMENT OF SECURITIES - CETIP.

PARAGRAPH 2. WITH REGARD TO THE ASSETS REFERRED TO IN ITEMS I AND II, LETTERS "B", "C", "D" AND "E":

A - THE TOTAL OF A SINGLE ISSUER SHALL NOT EXCEED 10% OF THE TOTAL INVESTMENTS OF THE FUND OR, IN THE CASE OF A FINANCIAL INSTITUTION ISSUER, 30% OF THAT SAME TOTAL;

B - THE TOTAL IN SECURITIES ISSUED OR CO-OBLIGATED BY A SINGLE ISSUER, ITS CONTROLLER, COMPANIES DIRECTLY OR INDIRECTLY CONTROLLED BY IT AND ITS AFFILIATES UNDER COMMON CONTROL SHALL NOT EXCEED 10% OF THE TOTAL INVESTMENTS OF THE FUND OR, IN THE CASE OF A CONGLOMERATE INTEGRATED BY A FINANCIAL INSTITUTION, 30% OF THAT SAME TOTAL.

ART. 11. THE "COMMODITIES" INVESTMENT FUND SHALL MAINTAIN POSITIONS IN ORGANIZED FUTURES SETTLEMENT MARKETS INVOLVING CONTRACTS REFERENCED IN AGRICULTURAL, LIVESTOCK AND AGRO-INDUSTRIAL PRODUCTS CORRESPONDING TO AT LEAST 15% OF THE TOTAL OF ITS INVESTMENTS.

PARAGRAPH 1. PROVISIONALLY, IN THE EVENT OF THE NON-EXISTENCE OF TRADING OF THE CONTRACTS REFERRED TO IN THIS ARTICLE, THE MINIMUM PERCENTAGE ESTABLISHED SHALL BE DIRECTED TO THE ASSET REFERRED TO IN ART. 10, ITEM I.

PARAGRAPH 2. FOR THE PURPOSE OF VERIFYING COMPLIANCE WITH THE LIMIT ESTABLISHED IN THIS ARTICLE, THE FOLLOWING SHALL BE CONSIDERED:

A - THE VALUES OF POSITIONS HELD OPEN, BOTH BOUGHT AND SOLD, IN THE CASE OF OPERATIONS CARRIED OUT IN FORWARD AND FUTURES MARKETS;

B - THE VALUES OF PREMIUMS PAID OR RECEIVED, IN THE CASE OF OPERATIONS CARRIED OUT IN THE OPTIONS MARKET.

PARAGRAPH 3. WITHOUT PREJUDICE TO THE PROVISIONS OF THE "CAPUT", THE FUND IS PERMITTED TO CARRY OUT OPERATIONS IN ORGANIZED FUTURES SETTLEMENT MARKETS INVOLVING CONTRACTS REGULARLY TRADED, REFERENCED IN OTHER ASSETS OR COMMODITIES THAN THOSE REFERRED TO THEREIN.

PARAGRAPH 4. THE SUM OF THE VALUES CORRESPONDING TO GUARANTEE MARGINS RELATING TO OPERATIONS CARRIED OUT IN ORGANIZED FUTURES SETTLEMENT MARKETS MAY NOT EXCEED 30% OF THE FUND'S NET ASSETS.

PARAGRAPH 5. THE SUM OF THE VALUES PAID AS PREMIUM IN OPTION PURCHASE OPERATIONS NOT CHARACTERIZED AS "COLLARS", AS DEFINED IN THE OPERATIONS REGULATIONS OF STOCK EXCHANGES AND COMMODITIES AND FUTURES EXCHANGES, MAY NOT EXCEED 10% OF THE FUND'S NET ASSETS.

CHAPTER IV

NET ASSETS

ART. 12. THE NET ASSETS OF THE "COMMODITIES" INVESTMENT FUND SHALL BE UNDERSTOOD AS THE SUM OF AVAILABLE FUNDS PLUS THE VALUE OF THE PORTFOLIO, PLUS AMOUNTS RECEIVABLE, MINUS LIABILITIES.

SOLE PARAGRAPH. FOR THE PURPOSE OF DETERMINING THE VALUE OF THE PORTFOLIO, THE CRITERIA ESTABLISHED BY THE CHART OF ACCOUNTS REFERRED TO IN ART. 29, SOLE PARAGRAPH, SHALL BE OBSERVED.

CHAPTER V

ISSUANCE, PLACEMENT AND REDEMPTION OF UNITS

ART. 13. THE UNITS OF THE "COMMODITIES" INVESTMENT FUND, WHICH SHALL BE NON-TRANSFERABLE, SHALL CORRESPOND TO IDEAL FRACTIONS THEREOF, SHALL BE IN NOMINATIVE FORM AND SHALL BE KEPT IN DEPOSIT ACCOUNTS IN THE NAME OF THEIR HOLDERS.

SOLE PARAGRAPH. THE STATUS OF UNITHOLDER IS PRESUMED BY THE REGISTRATION OF THE UNITS IN THE DEPOSIT ACCOUNT OPENED IN THEIR NAME IN THE BOOKS OF THE DEPOSITARY INSTITUTION.

ART. 14. THE DEPOSIT ACCOUNT STATEMENTS SHALL EVIDENCE THE OBLIGATION OF THE ADMINISTERING INSTITUTION OF THE "COMMODITIES" INVESTMENT FUND TO COMPLY WITH THE CONTRACTUAL PROVISIONS CONTAINED IN THE FUND'S REGULATION AND THE RULES OF THIS REGULATION.

SOLE PARAGRAPH. ANY CLAUSE RESTRICTING OR MODIFYING THE OBLIGATION REFERRED TO IN THIS ARTICLE SHALL BE DEEMED NOT WRITTEN.

ART. 15. THE DEPOSIT ACCOUNT STATEMENTS SHALL REFER TO WHOLE AND/OR FRACTIONAL NUMBER OF UNITS, AS PROVIDED IN THE REGULATION OF THE "COMMODITIES" INVESTMENT FUND.

SOLE PARAGRAPH. WHEN THE SYSTEM OF WHOLE UNITS IS ADOPTED, THE RESIDUAL VALUE OF THE INVESTMENTS SHALL BE KEPT IN A CURRENT ACCOUNT FOR FUTURE INVESTMENTS OR, IF REQUESTED, SHALL BE PAID TO THE UNITHOLDER IN CASH.

ART. 16. THE UNITS OF THE "COMMODITIES" INVESTMENT FUND MAY ONLY BE PLACED BY:

I - MULTIPLE BANK;

II - COMMERCIAL BANK;

III - INVESTMENT BANK;

IV - SAVINGS BANK

V - CREDIT, FINANCING AND INVESTMENT COMPANY;

VI - SECURITIES BROKERAGE COMPANY;

VII - SECURITIES DISTRIBUTION COMPANY.

ART. 17. THE FOLLOWING SHALL BE PROVIDED TO THE INVESTOR, FREE OF CHARGE, AT THE TIME OF THEIR ENTRY AS A UNITHOLDER OF THE "COMMODITIES" INVESTMENT FUND:

I - A COPY OF THE FUND'S REGULATION;

II - A DOCUMENT CLEARLY STATING THE FEES AND/OR EXPENSES WITH WHICH THE INVESTOR HAS BEEN CHARGED;

III - INDICATION OF THE NEWSPAPER(S) USED FOR DISCLOSURE OF FUND INFORMATION.

SOLE PARAGRAPH. THE SENDING OF THE DOCUMENTS REFERRED TO IN THIS ARTICLE IS PERMITTED AT THE TIME OF CONFIRMATION OF THE FIRST INVESTMENT.

ART. 18. THE UNITS OF THE "COMMODITIES" INVESTMENT FUND SHALL HAVE THEIR VALUE CALCULATED DAILY, BASED ON A PATRIMONIAL VALUATION CARRIED OUT IN ACCORDANCE WITH THE PROVISIONS OF ART. 12 AND THE RULES OF THE CHART OF ACCOUNTS REFERRED TO IN ART. 29, SOLE PARAGRAPH.

ART. 19. THE SUBSCRIPTION AND REDEMPTION OF UNITS OF THE "COMMODITIES" INVESTMENT FUND SHALL BE MADE IN CASH, CHECK, PAYMENT ORDER, DEBIT AND CREDIT IN CURRENT ACCOUNT OR CREDIT ORDER DOCUMENT.

SOLE PARAGRAPH. IN SPECIAL CASES, AFTER PRELIMINARY CONSULTATION WITH THE CENTRAL BANK, REDEMPTION MAY BE MADE IN ASSETS COMPOSING THE FUND'S PORTFOLIO.

ART. 20. IN THE ISSUANCE OF UNITS OF THE "COMMODITIES" INVESTMENT FUND, THE VALUE OF THE UNIT IN EFFECT ON THE DAY OF EFFECTIVE AVAILABILITY OF THE RESOURCES ENTRUSTED BY THE INVESTOR TO THE FUND'S ADMINISTERING INSTITUTION, AT ITS HEADQUARTERS OR BRANCHES, SHALL BE USED.

SOLE PARAGRAPH. FOR THE CALCULATION OF THE NUMBER OF UNITS TO WHICH THE INVESTOR IS ENTITLED, THE AGREED FEES AND/OR EXPENSES SHALL BE DEDUCTED FROM THE AMOUNT DELIVERED TO THE ADMINISTERING INSTITUTION.

ART. 21. FOR THE PURPOSE OF EXERCISING THE RIGHT OF REDEMPTION BY THE UNITHOLDER, THE "COMMODITIES" INVESTMENT FUND SHALL OBSERVE A GRACE PERIOD OF THIRTY DAYS FROM THE DATE OF ISSUANCE OF THE UNITS.

SOLE PARAGRAPH. DURING THE GRACE PERIOD, THE OCCURRENCE OF REDEMPTION(S) IS PERMITTED, PROVIDED THAT AT THE VALUE OF THE UNIT IN EFFECT ON THE DATE OF RESPECTIVE ISSUANCE OR ON THE DAY OF EFFECTIVE REDEMPTION, WHICHEVER IS LOWER.

ART. 22. THE REDEMPTION OF UNITS OF THE "COMMODITIES" INVESTMENT FUND SHALL BE EFFECTED, WITHOUT CHARGING ANY FEE OR EXPENSE, BY THE FIRST BUSINESS DAY FOLLOWING THE RESPECTIVE REQUEST.

SOLE PARAGRAPH. IN THE REDEMPTION, THE VALUE OF THE UNIT IN EFFECT ON THE DAY OF RESPECTIVE PAYMENT SHALL BE USED.

ART. 23. THE REGULATION OF THE "COMMODITIES" INVESTMENT FUND MAY PROVIDE FOR THE REINVESTMENT OF AMOUNTS CORRESPONDING TO REDEMPTIONS OF UNITS REQUESTED AND NOT CLAIMED BY UNITHOLDERS WITHIN THIRTY DAYS.

CHAPTER VI

GENERAL MEETING

ART. 24. THE GENERAL MEETING OF UNITHOLDERS OF THE "COMMODITIES" INVESTMENT FUND SHALL HAVE EXCLUSIVE COMPETENCE:

I - TO APPROVE, BY APRIL 30 OF EACH YEAR, THE FUND'S ACCOUNTS, PREPARED BY THE ADMINISTERING INSTITUTION, AND DELIBERATE ON ITS FINANCIAL STATEMENTS;

II - TO AMEND THE FUND'S REGULATION;

III - TO DELIBERATE ON THE REPLACEMENT OF THE ADMINISTERING INSTITUTION;

IV - TO DELIBERATE ON MERGER, INCORPORATION, SPIN-OFF OR LIQUIDATION OF THE FUND.

SOLE PARAGRAPH. THE FUND'S REGULATION MAY BE AMENDED INDEPENDENTLY OF A GENERAL MEETING, WHENEVER SUCH AMENDMENT ARISES EXCLUSIVELY FROM THE NEED TO COMPLY WITH REQUIREMENTS OF THE CENTRAL BANK, AS A CONSEQUENCE OF LEGAL OR REGULATORY RULES, AND THE NECESSARY COMMUNICATION TO UNITHOLDERS MUST BE PROVIDED WITHIN THIRTY DAYS.

ART. 25. THE CONVENING OF THE GENERAL MEETING OF UNITHOLDERS OF THE "COMMODITIES" INVESTMENT FUND SHALL BE MADE BY MEANS OF A NOTICE PUBLISHED IN THE NEWSPAPER(S) REFERRED TO IN ART. 17, ITEM III, WHICH SHALL MANDATORILY CONTAIN THE DAY, TIME AND PLACE WHERE THE MEETING WILL BE HELD AND, EVEN IF BRIEFLY, THE MATTERS TO BE ADDRESSED.

PARAGRAPH 1. THE FIRST CONVENING OF THE GENERAL MEETING SHALL BE MADE WITH AT LEAST EIGHT DAYS' ADVANCE NOTICE, COUNTED FROM THE DATE OF PUBLICATION OF THE FIRST NOTICE.

PARAGRAPH 2. IN THE CASES OF ART. 24, ITEMS III AND IV, IF THE GENERAL MEETING IS NOT HELD, A NEW NOTICE OF SECOND CONVENING SHALL BE PUBLISHED, WITH A MINIMUM ADVANCE NOTICE OF FIVE DAYS.

PARAGRAPH 3. EXCEPT IN CASES OF FORCE MAJEURE, THE GENERAL MEETING SHALL BE HELD AT THE PLACE WHERE THE ADMINISTERING INSTITUTION HAS ITS HEADQUARTERS; WHEN IT MUST BE HELD ELSEWHERE, THE NOTICES SHALL CLEARLY INDICATE THE PLACE OF THE MEETING, WHICH IN NO CASE MAY BE HELD OUTSIDE THE LOCALITY OF THE HEADQUARTERS.

PARAGRAPH 4. REGARDLESS OF THE FORMALITIES PROVIDED IN THIS ARTICLE, A GENERAL MEETING AT WHICH ALL UNITHOLDERS ARE PRESENT SHALL BE CONSIDERED REGULAR.

ART. 26. IN ADDITION TO THE ANNUAL ACCOUNTING MEETING, THE GENERAL MEETING OF UNITHOLDERS OF THE "COMMODITIES" INVESTMENT FUND MAY ALSO MEET TO ADDRESS THE MATTERS REFERRED TO IN ART. 24, ITEMS II TO IV, UPON CONVENING BY THE ADMINISTERING INSTITUTION OR BY UNITHOLDERS HOLDING UNITS REPRESENTING AT LEAST 30% OF THE TOTAL.

ART. 27. AT THE GENERAL MEETING OF UNITHOLDERS OF THE "COMMODITIES" INVESTMENT FUND, WHICH MAY BE INSTALLED WITH ANY NUMBER, RESOLUTIONS SHALL BE TAKEN BY THE CRITERION OF ABSOLUTE MAJORITY OF UNITS OF UNITHOLDERS PRESENT, WITH EACH UNIT CORRESPONDING TO ONE VOTE.

PARAGRAPH 1. IN RESOLUTIONS TAKEN AT A GENERAL MEETING REGARDING THE CASES OF ART. 24, ITEMS III AND IV, THE ABSOLUTE MAJORITY SHALL BE COMPUTED IN RELATION TO THE TOTAL UNITS ISSUED.

PARAGRAPH 2. RESOLUTIONS SHALL BE TAKEN BY MAJORITY OF UNITS OF UNITHOLDERS PRESENT AT THE GENERAL MEETING, EVEN IN THE CASES OF ART. 24, ITEMS III AND IV, WHEN THE QUORUM OF ABSOLUTE MAJORITY OF UNITS ISSUED IS NOT REACHED AT A MEETING HELD ON FIRST CONVENING.

PARAGRAPH 3. ONLY UNITHOLDERS REGISTERED UP TO THREE DAYS BEFORE THE DATE SET FOR THE MEETING MAY VOTE AT THE GENERAL MEETING.

PARAGRAPH 4. LEGAL REPRESENTATIVES OF UNITHOLDERS OR THEIR DULY CONSTITUTED ATTORNEYS HAVE STANDING TO ATTEND THE GENERAL MEETING.

CHAPTER VII

FINANCIAL STATEMENTS

ART. 28. THE INVESTMENT FUND IN "COMMODITIES" SHALL KEEP ACCOUNTING RECORDS SEPARATE FROM THOSE OF THE RESPECTIVE ADMINISTERING INSTITUTION.

ART. 29. THE FINANCIAL STATEMENTS OF AN INVESTMENT FUND IN "COMMODITIES" SHALL BE SUBJECT TO THE BOOKKEEPING RULES ISSUED BY THE NATIONAL MONETARY COUNCIL AND THE CENTRAL BANK.

SOLE PARAGRAPH. FOR THE PURPOSE OF VALUING THE ASSETS COMPRISING THE FUND, AS WELL AS THE APPROPRIATION OF REVENUES AND EXPENSES PERTAINING THERETO, THE RULES SET FORTH IN THE CHART OF ACCOUNTS ISSUED BY THE CENTRAL BANK SHALL BE OBSERVED.

ART. 30. THE INVESTMENT FUND IN "COMMODITIES" SHALL BE AUDITED SEMI-ANNUALLY BY AN INDEPENDENT AUDITOR REGISTERED WITH THE SECURITIES COMMISSION.

CHAPTER VIII

ON PUBLICITY AND THE SUBMISSION OF DOCUMENTS

ART. 31. THE ADMINISTERING INSTITUTION OF AN INVESTMENT FUND IN "COMMODITIES" SHALL BE OBLIGED TO DISCLOSE, WIDELY AND IMMEDIATELY, ANY ACT OR FACT RELEVANT TO IT, SO AS TO GUARANTEE ALL QUOTAHOLDERS ACCESS TO INFORMATION THAT MAY, DIRECTLY OR INDIRECTLY, INFLUENCE THEIR DECISIONS REGARDING REMAINING IN THE FUND.

PARAGRAPH 1. THE DISCLOSURE OF THE INFORMATION REFERRED TO IN THIS ARTICLE SHALL BE MADE THROUGH PUBLICATION IN THE PERIODICAL(S) REFERRED TO IN ART. 17, ITEM III.

PARAGRAPH 2. THE ADMINISTERING INSTITUTION SHALL MAKE THE PUBLICATIONS PROVIDED FOR IN THIS REGULATION ALWAYS IN THE SAME PERIODICAL(S), AND ANY CHANGE SHALL BE PRECEDED BY NOTICE TO THE QUOTAHOLDERS.

ART. 32. THE ADMINISTERING INSTITUTION OF AN INVESTMENT FUND IN "COMMODITIES" SHALL, WITHIN A MAXIMUM PERIOD OF TEN DAYS AFTER THE END OF EACH MONTH, MAKE AVAILABLE TO THE QUOTAHOLDERS, AT ITS HEADQUARTERS AND BRANCHES, THE INFORMATION REFERRED TO IN ART. 33, BASED ON DATA RELATING TO THE LAST DAY OF THE MONTH TO WHICH THEY REFER.

ART. 33. THE ADMINISTERING INSTITUTION OF AN INVESTMENT FUND IN "COMMODITIES" SHALL SEND TO EACH QUOTAHOLDER, ANNUALLY, BASED ON DATA RELATING TO THE LAST DAY OF THE MONTH OF DECEMBER, A DOCUMENT CONTAINING INFORMATION ON THE NUMBER OF QUOTAS OWNED BY THEM AND THEIR RESPECTIVE VALUE, AS WELL AS THE FUND'S PROFITABILITY FOR THE YEAR. SOLE PARAGRAPH. THE SENDING OF THE INFORMATION REFERRED TO IN THIS ARTICLE SHALL NOT BE MANDATORY FOR QUOTAHOLDERS:

A - HOLDING QUOTAS WHOSE TOTAL VALUE IS LESS THAN CR$ 500,000.00 (FIVE HUNDRED THOUSAND CRUZEIROS), ADJUSTED MONTHLY BY THE VARIATION OF THE REFERENCE FISCAL UNIT INDEX - MONTHLY UFIR;

B - WHOSE LAST SENDING OF INFORMATION WAS RETURNED DUE TO AN INCORRECT ADDRESS PROVIDED AND WHO HAVE NOT PROCEEDED TO UPDATE IT.

ART. 34. THE ADMINISTERING INSTITUTION OF THE INVESTMENT FUND IN "COMMODITIES" SHALL PUBLISH, ANNUALLY, BASED ON DATA RELATING TO THE LAST DAY OF THE MONTH OF DECEMBER, A DOCUMENT CONTAINING THE FOLLOWING INFORMATION REGARDING THE FUND:

I - PROFITABILITY AND NOMINAL VALUE OF THE QUOTA OVER THE LAST THREE YEARS, ALWAYS TAKEN ON THE BASIS OF COMPLETE FISCAL YEARS;

II - VALUE AND COMPOSITION OF THE PORTFOLIO, SPECIFYING THE QUANTITY, TYPE AND QUOTATION OF THE ASSETS COMPRISING IT, THE VALUE OF EACH INVESTMENT AND ITS PERCENTAGE OF THE TOTAL VALUE OF THE PORTFOLIO;

III - BALANCE SHEETS AND OTHER FINANCIAL STATEMENTS, ACCOMPANIED BY THE OPINION OF THE INDEPENDENT AUDITOR;

IV - LIST OF THE ENTITIES RESPONSIBLE FOR PROVIDING THE CUSTODY SERVICE FOR THE ASSETS COMPRISING THE PORTFOLIO;

V - THE CHARGES DEBITED TO THE FUND IN EACH OF THE LAST THREE YEARS, AS SET FORTH IN ART. 38, WITH THEIR VALUE AND PERCENTAGE IN RELATION TO THE AVERAGE MONTHLY NET ASSETS OF THE FUND IN EACH YEAR HAVING TO BE SPECIFIED.

ART. 35. THE MEASURES PROVIDED FOR IN ARTS. 33 AND 34 SHALL BE ADOPTED WITHIN A MAXIMUM PERIOD OF SIXTY DAYS AFTER THE END OF THE YEAR TO WHICH THEY REFER.

CHAPTER IX

ON GENERAL RULES

ART. 36. THE ASSETS COMPRISING THE PORTFOLIO OF AN INVESTMENT FUND IN "COMMODITIES" SHALL MANDATORILY BE HELD IN CUSTODY AT A MULTIPLE BANK WITH A COMMERCIAL OR INVESTMENT PORTFOLIO, A COMMERCIAL BANK, AN INVESTMENT BANK, A STOCK EXCHANGE OR AN ENTITY AUTHORIZED TO PROVIDE THAT SERVICE BY THE CENTRAL BANK OR THE SECURITIES COMMISSION. ART. 37. THE ASSETS COMPRISING THE PORTFOLIO OF AN INVESTMENT FUND IN "COMMODITIES" MAY NOT BE SUBJECT TO LEASING, LENDING, PLEDGE OR COLLATERAL, EXCEPT IN THE CASE OF THEIR USE AS MARGIN IN OPERATIONS CARRIED OUT IN ORGANIZED FUTURE SETTLEMENT MARKETS PROVIDED FOR IN THIS REGULATION.

ART. 38. THE FOLLOWING EXPENSES SHALL CONSTITUTE CHARGES OF THE INVESTMENT FUND IN "COMMODITIES", IN ADDITION TO THE REMUNERATION FOR THE SERVICES REFERRED TO IN ART. 9, WHICH MAY BE DEBITED TO IT BY THE ADMINISTERING INSTITUTION:

I - FEDERAL, STATE, MUNICIPAL OR AUTARCHIC FEES, TAXES OR CONTRIBUTIONS THAT FALL OR MAY FALL ON THE PROPERTY, RIGHTS AND OBLIGATIONS OF THE FUND;

II - EXPENSES FOR PRINTING, DISPATCHING AND PUBLISHING REPORTS, FORMS AND PERIODIC INFORMATION PROVIDED FOR IN THE FUND'S REGULATION OR IN THE PERTINENT REGULATION;

III - EXPENSES FOR CORRESPONDENCE OF INTEREST TO THE FUND, INCLUDING COMMUNICATIONS TO THE QUOTAHOLDERS;

IV - FEES AND EXPENSES OF THE AUDITORS RESPONSIBLE FOR REVIEWING THE BALANCE SHEET AND ACCOUNTS OF THE FUND AND ANALYZING ITS SITUATION AND THE PERFORMANCE OF THE ADMINISTERING INSTITUTION;

V - FEES AND COMMISSIONS PAID ON THE FUND'S OPERATIONS;

VI - LAWYERS' FEES, COURT COSTS AND RELATED EXPENSES INCURRED IN DEFENSE OF THE FUND'S INTERESTS, IN OR OUT OF COURT, INCLUDING THE AMOUNT OF ANY JUDGMENT, SHOULD THE FUND BE UNSUCCESSFUL;

VII - ANY EXPENSES INHERENT TO THE CONSTITUTION OR LIQUIDATION OF THE FUND OR TO THE HOLDING OF A GENERAL MEETING OF QUOTAHOLDERS;

VIII - CUSTODY FEES FOR THE FUND'S SECURITIES.

SOLE PARAGRAPH. ANY EXPENSES NOT PROVIDED FOR AS CHARGES OF THE FUND SHALL BE BORNE BY THE ADMINISTERING INSTITUTION.

ART. 39. WITHIN A MAXIMUM PERIOD OF FIVE DAYS FROM THEIR OCCURRENCE, THE FOLLOWING ACTS RELATING TO AN INVESTMENT FUND IN "COMMODITIES" SHALL BE SUBJECT TO WRITTEN COMMUNICATION TO THE REGIONAL DELEGACY OF THE CENTRAL BANK TO WHICH THE ADMINISTERING INSTITUTION IS SUBJECT, ACCOMPANIED BY THE CORRESPONDING DOCUMENTS:

I - AMENDMENT OF THE REGULATION;

II - REPLACEMENT OF THE ADMINISTERING INSTITUTION;

III - MERGER;

IV - INCORPORATION;

V - SPIN-OFF;

VI - LIQUIDATION.

ART. 40. NON-COMPLIANCE WITH THE RULES CONTAINED IN THIS REGULATION SHALL BE CONSIDERED A SERIOUS INFRACTION, WITHOUT PREJUDICE TO THE APPLICATION, TO THE ADMINISTERING INSTITUTION OF AN INVESTMENT FUND IN "COMMODITIES" AND TO THE ADMINISTRATOR RESPONSIBLE FOR ITS OPERATIONS, OF THE SANCTIONS PROVIDED FOR IN THE LEGISLATION AND REGULATION IN FORCE, AND THE CENTRAL BANK MAY FURTHER DETERMINE THE CONVENING OF A GENERAL MEETING OF QUOTAHOLDERS TO DECIDE ON ONE OF THE FOLLOWING ALTERNATIVES:

I - TRANSFER OF THE FUND'S ADMINISTRATION TO ANOTHER INSTITUTION;

II - LIQUIDATION OF THE FUND.

SOLE PARAGRAPH. NON-COMPLIANCE WITH THE RULES REFERRED TO IN CHAPTER III MAY RESULT, WITHOUT PREJUDICE TO THE APPLICATION OF OTHER SANCTIONS, IN THE SUMMARY DISACCREDITATION OF THE ADMINISTERING INSTITUTION BY THE CENTRAL BANK.