Circular No. 2332 — Regulates the Scope of Operation of Consortium Administrators and Representation Agreements and Adopts Other Measures

CIRCULAR NO. 002332

DISCIPLINES THE SCOPE OF OPERATION OF CONSORTIUM ADMINISTRATORS AND REPRESENTATION AGREEMENTS AND ADOPTS OTHER MEASURES.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 07.07.93, BASED ON LAW NO. 8.177, OF 01.03.91, DECIDED THAT:

ART. 1. THE CONSORTIUM ADMINISTRATOR MAY, FOR THE PURPOSES OF PLACING QUOTES, CONSTITUTING CONSORTIUM GROUPS, AND ATTENDING TO CONSORTIUM PARTICIPANTS, ENTER INTO AN EXCLUSIVE REPRESENTATION AGREEMENT ONLY WITH LEGAL ENTITIES.

PARAGRAPH 1. THE AGREEMENT MUST BE REGISTERED AT A NOTARY PUBLIC FOR REGISTRATION OF INSTRUMENTS AND DOCUMENTS, AND MUST BE FILED AT THE ADMINISTRATOR'S HEAD OFFICE, AT THE DISPOSAL OF THE CENTRAL BANK, WITH A CERTIFIED COPY KEPT AT THE DEPENDENCY OF THE AGENT.

PARAGRAPH 2. THE ADMINISTRATOR MUST FORWARD TO THE CENTRAL BANK/REGIONAL DELEGACY THAT HAS JURISDICTION OVER THE RESPECTIVE HEAD OFFICE, THE FOLLOWING INFORMATION REGARDING THE AGREEMENTS ENTERED INTO, WITHIN 10 (TEN) DAYS AFTER ITS FORMALIZATION:

A - NAME, COMPLETE ADDRESS, AND REGISTRATION NUMBER IN THE CGC OF THE AGENT;

B - ADDRESS OF THE AGENT'S DEPENDENCIES WHERE THE ADMINISTRATOR WILL BE REPRESENTED;

C - DATE OF ITS FORMALIZATION.

PARAGRAPH 3. FOR THE PURPOSES OF THIS CIRCULAR, THE TERM DEPENDENCY REFERS TO THE HEAD OFFICE AND BRANCHES OF A CONSORTIUM ADMINISTRATOR OR AGENT.

ART. 2. THE CONSORTIUM ADMINISTRATOR IS RESPONSIBLE FOR ALL ACTS PERFORMED BY THE AGENT IN THE CONDUCT OF OPERATIONS RELATED TO CONSORTIUM GROUPS SUBJECT TO THE AGREEMENT CONCLUDED.

ART. 3. THE ESTABLISHMENT OF A BRANCH AND THE FORMALIZATION OF A REPRESENTATION AGREEMENT DO NOT DEPEND ON AUTHORIZATION FROM THE CENTRAL BANK, PROVIDED THAT THE CONSORTIUM ADMINISTRATOR MEETS THE FOLLOWING REQUIREMENTS:

I - BE WITHIN THE MINIMUM LIMITS OF REALIZED CAPITAL AND NET EQUITY ESTABLISHED IN THE CURRENT REGULATION;

II - OBSERVE, FOR ITS OBLIGATIONS REPRESENTED BY THE TOTAL MONTHLY COLLECTION PRESCRIBED FOR THE CONSTITUTED GROUPS, A MAXIMUM LIMIT OF 15 (FIFTEEN) TIMES THE VALUE OF THE RESPECTIVE NET EQUITY OR, IN THE CASE OF NON-PROFIT CIVIC ASSOCIATIONS, THE SUM OF THE RESPECTIVE SOCIAL EQUITY;

III - NOT HAVE ANY PENDING ISSUES:

A - OF DELIVERY OF GOODS, IN ACCORDANCE WITH THE CURRENT REGULATION;

B - OF REMITTAL TO THE CENTRAL BANK OF FINANCIAL STATEMENTS AND DATA RELATING TO ITS OPERATIONS, IN ACCORDANCE WITH THE CURRENT REGULATION.

ART. 4. THE ESTABLISHMENT, CLOSURE, AND CHANGE OF ADDRESS OF A DEPENDENCY OF THE ADMINISTRATOR, AS WELL AS OF A DEPENDENCY OF THE AGENT WHERE THE ADMINISTRATOR IS REPRESENTED, MUST BE COMMUNICATED BY THE ADMINISTRATOR TO THE CENTRAL BANK/REGIONAL DELEGACY THAT HAS JURISDICTION OVER THE RESPECTIVE HEAD OFFICE, WITH A MINIMUM ADVANCE NOTICE OF 10 (TEN) DAYS.

SINGLE PARAGRAPH. THE CLOSURE OF A BRANCH'S ACTIVITIES OF THE ADMINISTRATOR OR THE CLOSURE OF A DEPENDENCY OF THE AGENT WHERE THE ADMINISTRATOR IS BEING REPRESENTED, IN WHICH A GROUP HAS BEEN CONSTITUTED, OBLIGES THE ADMINISTRATOR TO MAINTAIN AN EMPLOYEE OPERATING IN THE MUNICIPALITY TO PROVIDE INFORMATION TO CONSORTIUM PARTICIPANTS UNTIL THE CLOSURE OF THE GROUP.

ART. 5. IT IS PERMITTED TO THE CONSORTIUM ADMINISTRATOR TO OPERATE THROUGHOUT THE NATIONAL TERRITORY, CONSTITUTING CONSORTIUM GROUPS ONLY IN MUNICIPALITIES WHERE IT MAINTAINS A DEPENDENCY IN OPERATION OR WHERE IT IS REPRESENTED BY AN AGENT.

ART. 6. THE ADMINISTRATOR, DIRECTLY OR THROUGH THE AGENT, UNDERTAKES TO PROVID ALL INFORMATION TO THE CONSORTIUM PARTICIPANT, REGARDING THE RESPECTIVE GROUP AND THEIR PARTICIPATION IN THE GROUP, AT THE DEPENDENCY WHERE THE GROUP WAS CONSTITUTED.

PARAGRAPH 1. FOR THE PERFECT COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE, FINANCIAL INFORMATION REGARDING THE GROUP, AS WELL AS INFORMATION RELATED TO ITS PROGRESS, MUST BE AVAILABLE AT THE DEPENDENCY WHERE IT WAS CONSTITUTED.

PARAGRAPH 2. THE PROVISION OF INFORMATION REQUESTED BY THE CONSORTIUM PARTICIPANT MUST BE MADE BY THE ADMINISTRATOR OR THROUGH THE AGENT, ALWAYS WITHIN A PERIOD NOT EXCEEDING 3 (THREE) DAYS.

ART. 7. THE ADMINISTRATOR, IN MUNICIPALITIES WHERE IT MAINTAINS A DEPENDENCY IN OPERATION OR WHERE IT IS REPRESENTED BY AN AGENT, MUST MAINTAIN AN ADEQUATE SECTOR FOR RECEIVING MONTHLY PAYMENTS FROM ITS CONSORTIUM PARTICIPANTS.

SINGLE PARAGRAPH. IT IS PERMITTED TO THE ADMINISTRATOR TO OFFER CONSORTIUM PARTICIPANTS DOMICILED IN THE MUNICIPALITIES REFERRED TO IN THE "CAPUT" OF THIS ARTICLE THE OPTION TO PAY THEIR INSTALLMENTS THROUGH THE BANKING NETWORK, PROVIDED THAT THE COLLECTION SLIP CONTAINS A NOTICE THAT THE COST OF THE FEE CHARGED FOR THE SERVICE WILL BE THE RESPONSIBILITY OF THE CONSORTIUM PARTICIPANT, AND MUST BE PAID DIRECTLY TO THE BANK RECEIVING THE PAYMENT OF THE INSTALLMENT.

ART. 8. IT IS PERMITTED TO THE ADMINISTRATOR TO ADMIT, IN A CONSORTIUM GROUP UNDER ITS ADMINISTRATION, A PARTICIPANT DOMICILED IN A MUNICIPALITY DIFFERENT FROM THAT WHERE IT MAINTAINS A DEPENDENCY IN OPERATION OR WHERE IT IS REPRESENTED BY AN AGENT, PROVIDED THAT THE ADMINISTRATOR:

I - OBTAINS FROM THE PARTICIPANT THEIR EXPRESS MANIFESTATION OF KNOWLEDGE AND CONSENT, REGARDING THE MUNICIPALITY OF CONSTITUTION OF THE GROUP AND THE HOLDING OF GENERAL ASSEMBLIES, IN AN ADMISSION PROPOSAL CONTAINING ALL CLAUSES THAT WILL APPEAR IN THE ADMISSION CONTRACT;

II - PROVIDES THE INFORMATION REQUESTED BY THE PARTICIPANT, WITHOUT ANY ADDITIONAL COSTS;

III - OFFERS THE CONSORTIUM PARTICIPANT THE OPTION TO PAY THEIR INSTALLMENTS THROUGH A BANKING FINANCIAL INSTITUTION WITHOUT HOLDING THEM RESPONSIBLE FOR ANY BURDEN ARISING FROM THE COLLECTION SERVICE PROVIDED BY THE BANK INDICATED BY THE ADMINISTRATOR.

ART. 9. THE ADMINISTRATOR THAT ESTABLISHES DEPENDENCIES OR SERVICE POINTS THROUGH AN AGREEMENT WITHOUT OBSERVING THE PROVISIONS OF THIS CIRCULAR WILL BE SUBJECT TO THE PENALTIES PROVIDED FOR IN ART. 14 OF LAW NO. 5.768, OF 20.12.71.

ART. 10. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION, AND ADMINISTRATORS MAINTAINING AGREEMENTS MUST ADAPT TO ITS PROVISIONS WITHIN 60 (SIXTY) DAYS.

ART. 11. ITEM 7 AND ITS SUBITEMS, ITEM 65, AND SUBITEM "D" OF ITEM 60 OF ORDINANCE NO. 190, OF 27.10.89, OF THE MINISTRY OF FINANCE, THE "CAPUT" OF ITEM 4, AND SUBITEM 4.1 OF ORDINANCE NO. 028, OF 05.03.90, OF THE MINISTRY OF FINANCE, PARAGRAPHS 1 AND 2 OF ART. 5 OF THE REGULATION ANNEXED TO CIRCULAR NO. 2.196, OF 30.06.92, AND ART. 8 OF THE REGULATION ANNEXED TO CIRCULAR NO. 2.312, OF 26.05.93, ARE HEREBY REVOKED.

BRASÍLIA (DF), JULY 7, 1993

CLÁUDIO NESS MAUCH
DIRECTOR OF NORMS AND ORGANIZATION
OF THE FINANCIAL SYSTEM