Circular No. 2212 — Compulsory Collection and Mandatory Reserves on Demand Resources: Substitution of the Loss of the Cash Item in the Composition of Compulsory Liabilities with a Monetary Fine

CIRCULAR NO. 002212

TO
COMMERCIAL BANKS, SAVINGS BANKS, AND INSTITUTIONS HOLDING COMMERCIAL PORTFOLIOS

SUBSTITUTES THE LOSS OF THE CASH ITEM IN THE COMPOSITION OF COMPULSORY LIABILITIES ON DEMAND RESOURCES WITH A MONETARY FINE.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 05.08.92, 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. THE FINANCIAL INSTITUTION THAT DOES NOT PROVIDE THE BASE INFORMATION FOR CALCULATING THE COMPULSORY LIABILITY ON DEMAND RESOURCES WITHIN THE MAXIMUM DEADLINE DEFINED IN PARAGRAPH 1 OF ART. 6 OF CIRCULAR NO. 2,043, OF 23.09.91, OR COMES TO ALTER THEM AT ANY TIME, INCURS THE PAYMENT OF A MONETARY FINE TO BE OBTAINED THROUGH THE APPLICATION OF THE FOLLOWING FORMULA:

65
(1 + ERROR - 0.1)
F = ------ X CORRECT LIABILITY, WHERE:
2000

F = MONETARY FINE;
ERROR = (CORRECT LIABILITY - INCORRECT LIABILITY)/(CORRECT LIABILITY). NOTE: IF INCORRECT LIABILITY EQUALS "ZERO" THE MONETARY FINE WILL BE EQUAL TO 0.0005 (FIVE TEN-THOUSANDTHS) OF THE CORRECT LIABILITY.

PARAGRAPH 1. FOR INCLUSIONS/ALTERATIONS MADE DURING THE CALCULATION PERIOD AND FOR THOSE THAT CAUSE A DECREASE IN LIABILITY AFTER THE RESPECTIVE MOVEMENT PERIOD HAS BEGUN, A UNIFORM MONETARY FINE OF CR$ 500,000.00 (FIVE HUNDRED THOUSAND CRUZEIROS), UPDATED IN ACCORDANCE WITH PARAGRAPH 5 OF THIS ARTICLE, WILL BE CHARGED.

PARAGRAPH 2. THE MONETARY FINE WILL ONLY BE DUE FOR INCLUSIONS/ALTERATIONS THAT RESULT IN ABSOLUTE DEVIATIONS EQUAL TO OR GREATER THAN 0.5% (HALF A PERCENT).

PARAGRAPH 3. THE MONETARY FINE WILL HAVE A MAXIMUM LIMIT OF 0.0005 (FIVE TEN-THOUSANDTHS) OF THE CORRECT LIABILITY, BEING DUE ON THE BUSINESS DAY FOLLOWING THE GENERATING EVENT OF THE OCCURRENCE.

PARAGRAPH 4. IN THE EVENT THAT THE APPLICATION OF THE FOR- MULA PROVIDED IN THE "CAPUT" OF THIS ARTICLE RESULTS IN A VALUE LOWER THAN CR$ 500,000.00 (FIVE HUNDRED THOUSAND CRUZEIROS), CR$ 500,000.00 (FIVE HUNDRED THOUSAND CRUZEIROS) WILL PREVAIL AS A MINIMUM MONETARY FINE.

PARAGRAPH 5. THE AMOUNT OF CR$ 500,000.00 (FIVE HUNDRED THOUSAND CRUZEIROS) WILL BE DAILY UPDATED, FROM THE ENTRY INTO FORCE OF THIS CIRCULAR, BY THE DAILY REFERENCE RATE (TRD).

PARAGRAPH 6. THE OCCURRENCE OF THREE OR MORE DEVI- ATIONS OF LIABILITY EXCEEDING 10% (TEN PERCENT), IN A PERIOD OF SIX MONTHS, SUBJECTS THE ADMINISTRATORS OF THE FINANCIAL INSTITUTION TO ADMINISTRATIVE PROCEEDINGS, UNDER THE TERMS OF ART. 44 OF LAW NO. 4.595, OF 31.12.64, INDEPENDENTLY OF THE APPLICATION OF THE MONETARY FINE.

ART. 2. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 3. REVOKE PARAGRAPHS 3 AND 4 OF ART.
6 OF CIRCULAR NO. 2,043, OF 23.09.91.

BRASÍLIA (DF), AUGUST 06, 1992

PEDRO LUIZ BODIN DE MORAES GUSTAVO JORGE LABOISSIÈRE LOYOLA DIRECTOR DIRECTOR