Circular No. 2386 — Approves Annexed Regulation Governing the Formation and Operation of Consortium Groups Referenced in Durable Movable Goods

CIRCULAR N. 002386

Aprova Regulamento anexo que disciplina a constituição e o funcionamento de grupos de consórcio referenciados em bens móveis duráveis que especifica e estabelece critérios para a administração de grupos da espécie.

The Board of Directors of the Central Bank of Brazil, in a session held on 02.12.93, based on art. 33 of Law No. 8.177, of 1º.03.91,

D E C I D E D:

Art. 1º Approve the Annexed Regulation, which governs the formation and operation of consortium groups referenced in goods and sets of durable movable goods, which it specifies.

Art. 2º Establish that, for the purpose of forming consortium groups referenced in the goods and sets of goods subject to the discipline of the Annexed Regulation to this Circular, the administrator:

I - must be within the minimum limits of paid-in capital and net equity established in the current regulation;

II - must observe, for its obligations represented by the sum of the monthly collections expected for the groups formed, a maximum limit of 15 (fifteen) times the value of its respective net equity or, in the case of non-profit civil associations, the sum of its respective social equity;

III - must not have pending delivery of goods or remittance, to the Central Bank, of financial statements and data related to its operations, in accordance with current regulation;

IV - be classified into one of the following levels of operation, according to the relationship verified between its respective adjusted net equity (PLA) and the minimum required capital (CME) for a consortium administrator of movable goods, based on the data contained in the last balance sheet drawn up:

a) level 1: PLA equal to or greater than one time and less than three times the CME;

b) level 2: PLA equal to or greater than three times and less than six times the CME;

c) level 3: PLA equal to or greater than six times and less than nine times the CME;

d) level 4: PLA equal to or greater than nine times and less than twelve times the CME;

e) level 5: PLA equal to or greater than twelve times the CME.

Paragraph 1º The administrator may only move to a higher level of operation based on the data contained in the last semi-annual balance sheet sent to the Central Bank.

Paragraph 2º Failure to observe, at any time, the minimum limit of adjusted net equity provided for the level in which the administrator is operating will imply its automatic reclassification to a level of operation compatible with the adjusted net equity presented.

Paragraph 3º In the event of the provision of the preceding paragraph, the administrator may return to operate at the level of operation compatible with the adjusted net equity presented in the last semi-annual balance sheet, once the deficiency is remedied.

Art. 3º The total corresponding to the sum of the number of unsubscribed quotas not awarded plus the number of awarded quotas but whose pertinent goods have not yet been delivered, referenced in the goods and sets of goods subject to the discipline of the Annexed Regulation to this Circular, shall be attributed by the Central Bank to the set of consortium administrators, according to the evolution of the segment of these goods in the domestic market.

Sole Paragraph. In view of the provision of this article, each administrator, according to the level of operation in which it is classified, may not, at any time, present the total corresponding to the sum of the number of unsubscribed quotas not awarded plus the number of awarded quotas but whose pertinent goods have not yet been delivered, referenced in the aforementioned goods and sets of goods, superior to:

I - level 1: twenty thousand quotas;

II - level 2: sixty thousand quotas;

III - level 3: one hundred and eighty thousand quotas;

IV - level 4: three hundred and sixty thousand quotas;

V - level 5: five hundred and forty thousand quotas.

Art. 4º Companies authorized after the publication of this Circular to administer consortium groups shall be classified in level 1 of operation, being permitted to operate in other levels only after the delivery to the Central Bank of a semi-annual balance sheet.

Art. 5º Non-profit civil associations that administer or request authorization to administer consortium groups may operate, in the formation of consortium groups referenced in the goods and sets of goods subject to the discipline of the Annexed Regulation to this Circular, exclusively at level 2 of operation.

Art. 6º The Central Bank may determine the prohibition of the administrator from forming consortium groups referenced in the goods and sets of goods subject to the discipline of the Annexed Regulation to this Circular, whenever it finds irregularities against the administrator or its administrators, characterized by non-compliance with the legislation and current regulatory norms, or finds pending issues with consumer protection agencies.

Sole Paragraph. The administrator may only return to form consortium groups after the irregularities that motivated the prohibition have been remedied and with prior authorization in a specific process formalized with the Regional Agency of the Central Bank that has jurisdiction over its headquarters.

Art. 7º This Circular enters into force on the date of its publication, with the Annexed Regulation entering into force 30 days after this date.

Art. 8º Circular No. 2.268, of 20.01.93, and, from the date of entry into force of the Annexed Regulation to this Circular, arts. 3º and 4º of Circular No. 2.122, of 24.01.92, are revoked.

Brasília, December 2, 1993

Cláudio Ness Mauch
Director of Norms and Organization of the
Financial System

ANNEXED REGULATION

CHAPTER I

Of the Object of the Group, The Modalities and The Specification

SECTION I

Of the Object of the Group

Art. 1º The following may be the object of a consortium group governed by this Regulation: household appliances, electronics, furniture, toys, musical instruments, bicycles, and any other new durable movable goods or sets of durable movable goods, of national or foreign manufacture.

Paragraph 1º The following durable movable goods or sets of durable movable goods are not subject to the provisions of this Regulation: trucks, buses, tractors, road equipment, agricultural machinery and equipment, aircraft, vessels, automobiles, vans, utility vehicles, "buggies", motorcycles, and mopeds.

Paragraph 2º For the purposes of this Regulation, all durable movable goods and sets of durable movable goods referred to in the "caput" are goods of the same species.

SECTION II

Of The Modalities

Art. 2º The formation of a consortium group for the purchase of a good or set of goods with payment in installments and with linked credit is admitted:

I - to the price of the good or set of goods specified in the adhesion contract;

II - to a price index.

Art. 3º For the formation of a consortium group linked to a price index, the price index that will monthly adjust the installments and the credit due to the consortium member must be defined in the adhesion contract, as well as a substitute index in case of its extinction or non-disclosure in due time.

Paragraph 1º The price index referred to in the "caput" must have a regularly calculated series and be of public knowledge, and the exchange of index during the validity of the contract is prohibited, except in the case of its extinction.

Paragraph 2º The use of the Reference Rate (TR) and indices or indicators obtained from interest rates is prohibited.

SECTION III

Of The Specification

Art. 4º The good or set of goods that is the object of the group must be characterized in the adhesion contract by type, model, and brand.

Paragraph 1º In the consortium group linked to the price of the good or set of goods, the consortium member will be awarded credit of a value equivalent to that of the price of the good or set of goods characterized in the adhesion contract, valid on the date of award, without prejudice to the provision of paragraph 2º of art. 14 of this Regulation.

Paragraph 2º In the consortium group linked to a price index:

I - the specification of the good or set of goods in the adhesion contract serves exclusively to ensure that its price, valid on the date of the formation of the group, serves as the basis for the calculation of the 1st (first) installment;

II - there is no guarantee of credit in a value sufficient for the acquisition of the good or set of goods specified in the adhesion contract, on the date of award.

CHAPTER II

Of The Formation of the Group and The Duration Period

SECTION I

Of The Formation of the Group

Art. 5º The group shall be considered formed on the date of the first ordinary general meeting convened by the administrator, provided that the convening can only be made after the adhesion of at least 70% (seventy percent) of the participants expected for the group.

Paragraph 1º The formation of a consortium group referenced in a good or set of goods of the same species, with differentiated prices, is permitted, provided that the value of the good or set of goods of lower price is not less than 50% (fifty percent) of the price of the good or set of goods of higher value, on the date of the formation of the groups.

Paragraph 2º The formation of a group referenced simultaneously in goods or sets of goods of national and foreign manufacture is prohibited.

Paragraph 3º After formation, each group shall have its own identification and shall be autonomous with respect to others formed by the administrator.

Art. 6º Upon adhesion to the group, the consortium member must be required to prove an economic-financial situation compatible with their participation in the plan, without prejudice to the presentation of documents related to guarantees for the receipt of the good, upon award.

Art. 7º The maximum number of participants in each group, on the date of formation, shall be the result of the multiplication of the number of months fixed for its duration by the quantity of goods or sets of goods provided for monthly award.

Sole Paragraph. In the event of withdrawal or exclusion of consortium members, the group may continue to function with any number of participants, without prejudice to the duration period and the provision of item IV of art. 56 of this Regulation.

Art. 8º The consortium member not awarded may request, on a single opportunity, a change of the good or set of goods that is the object of their participation to another of lower value, within the same group, provided that:

I - the new good or set of goods is available on the market;

II - the price difference does not exceed 50% (fifty percent) of the value of the good or set of goods that is the object of the consortium member's initial participation, respecting the price of the good that integrates the category of lower value in the group, in the case of groups of goods or sets of goods with differentiated prices;

III - the price of the new good or set of goods is not lower than the updated value of the contributions paid to the common fund of the group, on the date of the assembly prior to the request for change.

Paragraph 1º In the consortium group linked to the price of the good or set of goods, the change of good or set of goods will imply a recalculation of the amortized percentage, which will be made based on the price of the new good or set of goods valid on the date of the assembly prior to the request for change, provided that if there is a remaining debt balance, its monthly amortization will be made by applying the same percentage of the original plan to the price of the new good or set of goods.

Paragraph 2º In the consortium group linked to a price index, the change of good or set of goods will imply a recalculation of the amortized value, which will be made based on the value of the installment paid on the date of the assembly prior to the request for change, multiplied by the quantity of installments already paid and the price of the new good or set of goods valid on the date of the assembly prior to the request for change, and, if there is a remaining debt balance, its monthly amortization will be made by dividing the value of the debt balance by the quantity of remaining installments, observing the duration period of the group.

Paragraph 3º If there is no debt balance, the consortium member:

I - will only have the right to acquire the good or set of goods upon their award by lottery;

II - will be subject, until the receipt of the good or set of goods, to the payment of the installment difference referred to in item II of art. 42 of this Regulation.

Art. 9º The administrator, its partners, managers, directors, and agents with management functions may participate in consortium groups administered by it, provided that:

I - they do not compete in the distribution system;

II - the goods or set of goods corresponding to their participation are attributed to them after the award of all other consortium members of the group.

Sole Paragraph. The provision of this article applies to a company linked to the administrator that participates in consortium groups administered by it.

SECTION II

Of The Duration Period of the Group

Art. 10. The consortium group shall have a duration period fixed based on the price, valid on the date of its formation, of the good or set of goods characterized in the adhesion contract, in the manner provided in art. 4º of this Regulation, observing the following limits:

I - up to 3,500 (three thousand and five hundred) Fiscal Reference Units (UFIR): maximum of 36 (thirty-six) months;

II - above 3,500 (three thousand and five hundred) UFIR up to 35,000 (thirty-five thousand) UFIR: maximum of 50 (fifty) months;

III - above 35,000 (thirty-five thousand) UFIR: maximum of 60 (sixty) months.

CHAPTER III

Of The Award

Art. 11. The award is the attribution to the consortium member of the right to use the credit that will be at their disposal for the purchase of the good or set of goods, in accordance with Chapter IV of this Regulation.

Paragraph 1º The award will be made exclusively by means of draws and bids.

Paragraph 2º For the purpose of award, the dates of the ordinary general meetings will always be considered.

Paragraph 3º The administrator must notify the awarded consortium member absent from the ordinary general meeting of their award, by means of a letter or telegraphic notice, the dispatch of which must be made by the third business day after its realization.

Art. 12. The award is conditioned on the existence of sufficient resources in the common fund, with the use of the reserve fund resources permitted, observing the provision of item I of art. 31 of this Regulation, for the distribution, by draw, of at least half of the credits for the purchase of goods or sets of goods provided for distribution in the ordinary general meeting monthly.

Paragraph 1º After the distribution by draw, of at least half of the credits for the purchase of a good or set of goods, provided for distribution in the ordinary general meeting monthly, or if it has not been carried out due to insufficient resources, the offer of bids that enable awards is admitted.

Paragraph 2º The administrator that proceeds with the award without the existence of sufficient resources is responsible for the damages caused to the awarded consortium member.

Art. 13. The bids, which will always be made in cash or check, must be offered:

I - in percentages of the price, valid on the date of the assembly, of the good or set of goods referenced in the adhesion contract referred to in art. 4º of this Regulation, in consortium groups linked to the price of the good;

II - in multiples of the value of the monthly installment valid on the date of the assembly in which they are offered, in consortium groups linked to price indices.

Paragraph 1º The value of the bid may not be:

I - less than 10% (ten percent) of the consortium member's debt balance;

II - greater than the number of remaining installments, excluding those provided for in items II and III of art. 68 of this Regulation.

Paragraph 2º The bid that, representing the highest percentage of the price of the good or set of goods, or the highest number of installments, according to the consortium modality, added to the cash balance, is sufficient for the award of credit for the purchase of a good or set of goods, shall be considered the winner.

Paragraph 3º The tie-breaking criterion for bids must be defined in the adhesion contract.

Paragraph 4º The bids, if winning, will be considered advance payments of remaining installments, in the manner established in Section II of Chapter VII of this Regulation, and the losers will be refunded on the spot.

Art. 14. The administrator must make the respective credit, valid on the date of the realization of the award assembly, available to the awarded consortium member, by the third business day following the date of its realization.

Paragraph 1º The resources related to the credit referred to in this article must remain deposited in a linked account, applied in the manner provided for in Decree-Law No. 1.290, of 03.12.73.

Paragraph 2º In the consortium group linked to the price of the good or set of goods, the general assembly of formation may determine a period, of up to ten business days, during which the group is responsible for the variation in the price of the good that occurs from the date of realization of the award assembly.

Paragraph 3º Deciding the assembly of formation regarding the determination of a period for the effects of the preceding paragraph, the same assembly must provide for the procedures to be adopted, in case the good or set of goods referenced in the contract undergoes a price adjustment within the period in question and the group does not have sufficient resources in the common and reserve funds for its acquisition, while the difference is not paid by the respective participants of the group.

Paragraph 4º The consortium member will have at their disposal for the acquisition of the good or set of goods:

I - if a participant in a group with credit linked to a price index or a group that has not opted for the provision of paragraph 2º of this article, the value of the credit referred to in the "caput" of this article increased by the net earnings from its financial application, in the manner of paragraph 1º of this article, in the period comprised between the business day immediately following the date of the award until the last day prior to its effective use;

II - if a participant in a group that has opted for the provision of paragraph 2º of this article:

a) if the good or set of goods is acquired during the period in which the group was responsible for its price, the value of the good or set of goods referenced in the contract valid on the day of its acquisition, provided that the net financial earnings obtained in the said period are reverted in favor of the group;

b) if the good or set of goods is not acquired during the period in which the group was responsible for its price, the value corresponding to the price of the good or set of goods referenced in the contract valid on the last day of this period, increased by the net financial earnings obtained from the business day immediately following the expiration of the said period until the business day immediately prior to its effective use.

Art. 15. Safeguarding the interests of the group and the awarded consortium member, the administrator may deliver to the supplier of the good, after the award, the order for the supply of the good or set of goods referenced in the contract, as well as make the respective payment to guarantee the price valid on the date of the award assembly.

Paragraph 1º If the awarded consortium member opts for the acquisition of a good or set of goods different from that referenced in the adhesion contract or indicates another supplier or wishes to determine another moment for its acquisition, within the period indicated in item III of art. 16 of this Regulation, they must formally manifest themselves at the moment of the presentation of the required guarantees and, if applicable, until the end of the period of responsibility of the group, in the manner provided in paragraph 2º of the preceding article.

Paragraph 2º In the event of any of the hypotheses provided for in the preceding paragraph, the administrator will return to the group the value of the credit increased by an amount corresponding to the respective net financial earnings as if they had been applied in the manner provided for in Decree-Law No. 1.290/73, observing, insofar as applicable, the provisions of the preceding article.

Art. 16. The award must be cancelled, with the return of the credit and the respective financial earnings to the common fund, when the awarded consortium member:

I - fails to present the required guarantees within ten business days counted from the knowledge of the award;

II - having not used the credit at their disposal, delays the payment of two monthly installments;

III - did not acquire the good or set of goods by the due date corresponding to the second assembly following the one where the credit was awarded.

Paragraph 1º If the award is cancelled, if the amount that returns to the common fund - including the yields from the financial application of the resources between the date the credit was made available to the awarded consortium member and the day of the holding of the ordinary general assembly immediately following the date of the cancellation of the award - is lower than the credit due on the date of said assembly, the corresponding difference will be added to the value of the first subsequent installment of the consortium member whose award was cancelled.

Paragraph 2º In cases of cancellation of the award by bid, the same must be returned, plus the net yields of its respective financial application, in the manner provided for in Decree-Law No. 1,290/73.

Paragraph 3º In the event of the provisions of this article, the administrator shall distribute one more credit, by lottery, in the ordinary general assembly immediately following the date of the cancellation, if there are sufficient resources.

CHAPTER IV

Of the Acquisition of the Good and of the Guarantees

SECTION I

Of the Acquisition of the Good

Art. 17. The awarded consortium member may acquire with the respective credit the good or set of goods referenced in the contract or another of the same kind.

Art. 18. The goods or set of goods referred to in the previous article, whether national or foreign manufacture, must be new, acquired through the issuance of an invoice and for which authorized technical assistance and replacement of parts are guaranteed, by declaration of the manufacturer or its legal representative in the Country.

Art. 19. If the acquired good is of price:

I - higher than the credit, as defined in art. 14 of this Regulation, the awarded consortium member will be responsible for the price difference that exists;

II - lower than the credit, as defined in the aforementioned art. 14 of this Regulation, the difference, at the discretion of the consortium member, must be used:

a) in the purchase of another good or set of goods, subject to fiduciary alienation;

b) to pay the future installments in reverse order starting from the last.

Art. 20. For the acquisition of the good:

I - the consortium member:

a) will have credit in the manner defined in art. 14 of this Regulation;

b) must present the documents related to the guarantees required for the receipt of the good or set of goods, as agreed in the adhesion contract, observing the provisions of Section II of this Chapter;

c) if wishing to opt for the acquisition of a good or set of goods different from that referenced in the adhesion contract or indicate another supplier or determine another moment for its acquisition, as provided in paragraph 1º of art. 15 of this Regulation, the awarded consortium member will formally request authorization from the administrator for the invoicing of the good, informing in the request the description of the good or set of goods to be acquired, the respective price and the indication of the legal entity supplier, together with the presentation of the documents referred to in the previous letter;

II - the administrator must pronounce itself regarding the documents related to the guarantees, referred to in the previous item, within a maximum period of three business days counted from the date of its presentation and, observing this same period, make available to the awarded consortium member, who is in the situation referred to in letter "c" of the previous item, authorization for the invoicing of the good or set of goods, containing:

a) the description of the good or set of goods to be acquired and the indication of the legal entity supplier, as informed by the consortium member;

b) the value of the credit, if the price of the good or set of goods is equal to or greater than this value, or the value corresponding to the price of the good or set of goods, if the one informed by the consortium member is lower than the value of the credit;

c) the determination that the invoice must be issued with the caveat that the good or set of goods is fiduciarily alienated to the administrator, if applicable;

d) information that the payment of the good or set of goods will be effected by the second business day subsequent to the presentation of the invoice;

III - the administrator must effect payment to the supplier of the good or set of goods by the second business day subsequent to the presentation of the invoice.

Paragraph 1º The administrator may only effect payment of the good or set of goods to the supplier if the acquisition was made through invoicing authorization issued by it.

Paragraph 2º The administrator that does not observe the deadlines provided for in item II of this article will be responsible for the price difference that occurs subsequently to the presentation of the documents required from the awarded consortium member.

Art. 21. The invoicing authorization may be issued or transferred in favor of third parties, upon request, in writing, by the awarded member, prior consent of the administrator and transfer of contract.

Sole Paragraph. If not consenting, the administrator must, within a maximum period of three business days, deliver to the requesting consortium member a written justification of its decision.

Art. 22. The invoicing authorization may only be released by the administrator if the awarded consortium member effects payment of obligations eventually in arrears after the award.

SECTION II

Of the Guarantees

Art. 23. As guarantee for the payment of future installments, the good or set of goods acquired through a consortium will be subject to fiduciary alienation, in accordance with art. 66 of Law No. 4,728, of 07/14/65, with the wording given to it by Decree-Law No. 911, of 10/01/69.

Paragraph 1º The release of the guarantee before the settlement of the balance owed is prohibited.

Paragraph 2º The fiduciarily alienated good or set of goods may be substituted with prior authorization of the administrator, which will assume towards the group the responsibility for any damages resulting from the granted authorization.

Art. 24. The administrator may demand complementary guarantees proportional to the future installments, provided they are expressly provided for in the adhesion contract, unless the consortium member presents a bank guarantee or the group opts for insurance against guarantee breakage.

CHAPTER V

Of the Payments Due by the Consortium Member

SECTION I

Of the Monthly Installment

Art. 25. Consortium members are obliged to pay, monthly, an installment whose value will be the sum of the amounts referring to the common fund, reserve fund and administrative fee, observing that:

I - the amount intended for the formation of the common fund of the group, regulated in the manner of Section I of Chapter VI of this Regulation, will be calculated with observance of the following:

a) in the consortium group linked to the price of the good or set of goods:

1. a percentage will be defined, dividing 100% (one hundred percent) by the total number of months fixed for the duration of the group;

2. the value of the monthly contribution, due to the common fund, will result from the incidence of the percentage referred to in the previous item on the price of the good or set of goods referenced in the contract in force on the date of the holding of the ordinary general assembly;

b) in the consortium group linked to a price index:

1. in the 1st (first) installment, dividing the value referring to the price of the good or set of goods referenced in the adhesion contract, in force on the date of the constitution of the group, by the number of months foreseen for the duration of the group;

2. in subsequent installments, applying the variation of the price index provided for in the adhesion contract occurred in the month immediately preceding, on the value of the monthly contribution due to the common fund;

II - the amount intended for the formation of the reserve fund of the group, regulated in the manner of Section II of Chapter VI of this Regulation, will be calculated by applying the percentage fixed in the adhesion contract not exceeding 5% (five percent) on the value of the monthly contribution due to the common fund;

III - the portion relative to the remuneration of the administrator, which composes the monthly installment, regulated in the manner of Section III of Chapter VI of this Regulation, will be calculated by applying the percentage fixed in the adhesion contract referring to the administrative fee, on the value of the monthly contribution due to the common fund.

SECTION II

Of the Other Payments

Art. 26. The consortium member will also be subject to payment:

I - of life insurance premium and/or guarantee breakage insurance, provided they are approved in the ordinary general assembly of constitution;

II - of installment differences, as provided in Section IV of Chapter VII of this Regulation;

III - of expenses, realized with the registration of the guarantees provided, including in cases of assignment, provided they are proven by the administrator;

IV - of interest up to 1% (one percent) per month and late payment penalty up to 10% (ten percent) calculated on the updated value of the monthly installments in arrears, as provided in art. 40 of this Regulation;

V - of judicial collection expenses, in accordance with the sentence;

VI - of value corresponding to the adhesion fee to the consortium group, observing the provisions of art. 35 of this Regulation;

VII - of value corresponding to the update of the credit referred to in paragraph 2º of art. 14 of this Regulation, when applicable;

VIII - of expenses resulting from the purchase and/or delivery of the good, at the request of the consortium member, in a market different from that stated in the adhesion contract.

Art. 27. The collection of any other values not provided for in this Chapter is prohibited.

CHAPTER VI

Of the Common Fund, the Reserve Fund and the
Remuneration of the Administrator

SECTION I

Of the Common Fund

Art. 28. The common fund will be constituted by the resources:

I - provided for in item I of art. 25 and in item II of art. 42 of this Regulation;

II - from the yields of financial application of the resources of the fund itself;

III - originating from the payment, made by consortium member admitted in the share of a withdrawing or excluded participant, of the contributions relative to the common and reserve funds previously paid;

IV - from interest and penalties, in the manner of art. 46 of this Regulation;

V - originating from the reduction of the value to be returned to a withdrawing or excluded participant, observing the provisions of art. 67 of this Regulation.

Art. 29. The resources of the common fund will be used for:

I - acquisition of the goods or sets of goods of the awarded consortium members;

II - return of amount collected in excess, referred to in item 2 of letter "b" of item II of art. 64 of this Regulation;

III - return to participants, to withdrawers and to excluded members of the group, upon its closure, observing the provisions of Chapter IX of this Regulation;

IV - return of bid value, relative to the amount destined to the common fund, to the participant of the group whose award was cancelled, observing the provisions of paragraph 2º of art. 16 of this Regulation;

V - return to participants, to withdrawers and to excluded members of the group, in case of its dissolution, in the manner regulated in Chapter XIII of this Regulation.

SECTION II

Of the Reserve Fund

Art. 30. The reserve fund will be constituted by the resources:

I - provided for in item II of art. 25 of this Regulation;

II - from the yields of financial application of the resources of the fund itself.

Art. 31. The resources of the reserve fund will be used, prioritarily and in the following order, for:

I - payment of the guarantee breakage insurance premium, according to the rate established by the competent body;

II - coverage of eventual revenue insufficiency, in the monthly ordinary general assemblies, in order to allow the distribution by lottery of, at least, half of the credits for the purchase of good or set of goods foreseen for distribution in the monthly ordinary general assembly;

III - coverage of installment difference, as regulated in art. 43 of this Regulation;

IV - return of bid value, relative to the amount destined to the reserve fund, to the participant of the group whose award was cancelled, observing the provisions of paragraph 2º of art. 16 of this Regulation;

V - award by lottery of a credit for acquisition of good or set of goods, when the amount of the fund itself reaches the equivalent to twice the value of the good or set of goods of highest value in the group;

VI - coverage of the return, to withdrawers and excluded members, observing the provisions of art. 67 of this Regulation;

VII - payment of the debts of defaulting consortium members, after exhausting all means of collection admitted in law;

VIII - return, to consortium members who have not been excluded or are not withdrawers, of the balance existing at the end of the operations of the group, proportional to their monthly installments paid;

IX - return to participants, to withdrawers and to excluded members of the group, in case of its dissolution, in the manner regulated in Chapter XIII of this Regulation.

Sole Paragraph. In the event of use of the reserve fund in the manner provided for in item V of this article:

I - the number of installments provided for in the plan will be reduced proportionally to the quantity of goods drawn;

II - the appropriation of the value relative to the administrative fee is permitted, observing the value of the good or set of goods, as well as the percentage of this value referring to the administrative fee provided for in the contract.

Art. 32. The reserve fund must be accounted separately from the common fund.

SECTION III

Of the Remuneration of the Administrator

Art. 33. The remuneration of the administrator for the formation, organization and administration of the consortium group will be constituted by the resources provided for in item III of art. 25 of this Regulation, being called administrative fee and by the resources from interest and penalties, up to the percentage referred to in art. 46 of this Regulation.

Art. 34. The administrative fee will be fixed by the administrator in the consortium member's adhesion contract, the same percentage must be fixed for all participants of the group, its alteration for higher being prohibited during the duration of the group.

Paragraph 1º Non-profit associations may only charge the effective and proven expenses realized with the management of the group.

Paragraph 2º The administrative fee may be charged and must be compensated when there is, respectively, charge or return of installment difference, as regulated in Section IV of Chapter VII of this Regulation.

Art. 35. It is optional for the administrator to charge the consortium member at the time of formalizing their adhesion to the group:

I - the first installment, calculated in the manner provided for in art. 25 of this Regulation, the resources being applied in the manner provided for in Decree-Law No. 1,290/73;

II - percentage of up to 4% (four percent) of the price of the good or set of goods specified in the adhesion contract.

Paragraph 1º The price of the good or set of goods referred to in item II of this article must be the one in force on the date of adhesion.

Paragraph 2º Once the group is constituted:

I - the value charged referred to in item I of this article, plus the respective net financial yields, must be transferred to the group;

II - the value charged referred to in item II of this article, plus the respective net financial yields, must be compensated in the administrative fee.

Paragraph 3º If the group is not constituted within ninety days counted from the formalization of adhesion, from the first business day following this period, the administrator must return to the adherent the values charged in the manner allowed in this article, plus the net yields from its financial application in the manner provided for in Decree-Law No. 1,290/73.

Art. 36. The amounts paid in the manner provided for in item I of the previous article, plus the respective yields from their financial application, will be considered effective payment of the installment due by the consortium member on the date of the constitution assembly of the group, observing the provisions of art. 25 of this Regulation.

CHAPTER VII

Of the Due Date, Prepayments, Late Payment and Installment Differences

SECTION I

Of the Due Date

Art. 37. The following must be delivered to the consortium member in the ordinary general assembly of constitution, or sent to him together with the collection of the first installment:

I - the calendar with the due dates of the monthly installments of the group, which may be reviewed quarterly by the administrator;

II - information of the payment location.

Paragraph 1º The due date of the first installment, when its receipt does not occur in the manner allowed in art. 35, must be fixed for fifteen days after the holding of the ordinary general assembly of constitution of the group, when this event is not realized together with the first distribution assembly, and, for the other situations, the provisions of item I of paragraph 1º of art. 55 of this Regulation must be observed.

Paragraph 2º If it falls on a non-business day, the due date of the installment will automatically pass to the first subsequent business day.

Art. 38. The consortium member who does not effect payment of the monthly installment by the date fixed for its due date will be prevented from competing in the lotteries or participating in bids in the respective ordinary general assembly.

SECTION II

Of the Prepayments of Installments

Art. 39. The consortium member may deduct the balance owed of its installments in reverse order starting from the last, in whole or in part, exclusively:

I - by means of a winning bid;

II - in case of use of credit difference, as defined in letter "b" of item II of art. 19 of this Regulation;

III - to enable awards, provided the consortium member has been awarded and the value of the prepayments, added to the availabilities, is sufficient for the acquisition of one or more goods object of the plan;

IV - if the group, in the constitution assembly, decides on the possibility of prepayment of installments, in the manner of item IV of art. 53 of this Regulation.

Paragraph 1º The consortium member not awarded who pays in advance the installments provided for in the contract, in the manner provided for in this article, will have the right to the acquisition of the good or set of goods after its award by lottery.

Paragraph 2º The balance owed comprises the unpaid value of the installments and the installment differences, referred to, respectively, in art. 25 and section IV of this Chapter, as well as the values due and unpaid provided for in art. 26 of this Regulation.

Paragraph 3º The total settlement of the balance owed may only be exercised by the awarded consortium member whose good has already been acquired, ending their participation in the group, with the consequent release of the guarantees given.

SECTION III

Of the Payment of Installments with Delay

Art. 40. The installments paid after the due date will have their values updated:

I - in the consortium group linked to the price of the good or set of goods, according to the respective price, in force on the date of the ordinary general assembly subsequent to the date of effective payment.

II - in the consortium group linked to a price index, by the accumulated variation of the price index provided for in the contract, in the period of delay, observing that:

a) if paid on a due date, the update will be due until the date, inclusive, of the ordinary general assembly subsequent;

b) if paid outside the due date, the update will be due until the date, inclusive, of the ordinary general assembly subsequent to the first due date after the occurrence of the payment.

Art. 41. The consortium member who delays the payment of the installments is subject to the charges referred to in items IV and V of art. 26 of this Regulation.

Sole Paragraph. The administrator must adopt, immediately, the legal procedures necessary for the repossession of the good or set of goods, if the awarded consortium member and in possession of the good delays the payment of the installments.

SECTION IV

Of the Installment Differences

Art. 42. Payment differences are:

I - the amount collected less or more in relation to the price of the good or set of goods or the variation of the price index referenced in the contract, valid on the date of the respective ordinary general assembly;

II - the difference less or more verified in the balance of the group's common fund that passes from one assembly to another, resulting from a change in the price of the good or set of goods or a variation in the price index occurring in the same period, as provided in Article 43 of this Regulation.

Art. 43. Whenever the price of the good or set of goods is altered or there is a variation in the price index, the balance of the group's common fund that passes from one assembly to another must be altered in the same proportion, and the corresponding value converted into a percentage of the price of the good or set of goods, observing the following:

I - if the price of the good or set of goods or the price index undergoes an upward readjustment, the deficiency in the common fund balance must be covered by resources from the financial application of the fund's own resources, the group's reserve fund, and the rate among the group participants, adhering to the order in which these alternatives are mentioned;

II - if the price of the good or set of goods or the price index undergoes a downward readjustment, the excess in the common fund balance must be distributed among the group participants;

III - the distribution referred to in items I and II of this article must be made proportionally to the percentages of the good or set of goods paid by the active group participants;

IV - in the event of the situation described in item I of this article, the administrator is entitled to charge a portion related to remuneration for transfers from the reserve fund and for the distribution among group participants, as well as to offset this portion in the event of the provisions in item II of this article, with the charging or offsetting of any value related to the reserve fund prohibited;

V - the amounts paid by the consortium member in accordance with the provisions of this article must be recorded separately in their current account, and the corresponding percentage will not be considered for the purpose of amortizing monthly installments.

Art. 44. The value related to the payment difference must be charged or offset by the second installment immediately following the date of its verification.

Art. 45. The untimely charging of payment differences to consortium members is prohibited.

CHAPTER VIII

Of the Collected Resources

SECTION I

Of the Destination of Collected Interest and Penalties

Art. 46. The values received related to interest and penalties will have the following destination:

I - 40% (forty percent) to the administrator;

II - the remainder to the group's common fund.

SECTION II

Of the Application of the Group's Resources

Art. 47. The group's resources must be obligatorily deposited in a multiple bank with a commercial portfolio, a commercial bank, or a savings bank and applied, from their availability, in the manner provided for in Decree-Law No. 1,290/73.

Sole Paragraph 1. The consortium administrator must perform daily control of the movement of the accounts comprising the group's liquidity, including bank deposits, with a view to reconciling global receipts for the analytical identification of the bank balance per consortium group.

Sole Paragraph 2. The maintenance of an individualized bank account per group is permitted.

SECTION III

Of the Use of the Group's Resources

Art. 48. The use of the group's resources, as well as the earnings from their applications, may only be made by identifying the purpose of the payment, in favor of:

I - the legal entity that sold the good or set of goods to the selected consortium member, in accordance with the regulation contained in Section I of Chapter IV of this Regulation, for the respective payment, specifying the invoice number and date;

II - the participants who have remained in the group and the withdrawers and excluded persons, for the return of due values, as regulated in Chapter IX of this Regulation;

III - the administrator, for other payments made in accordance with current regulations.

CHAPTER IX

Of the Closure of the Group

Art. 49. Within sixty days after the selection of the participants of their respective groups and the placing at their disposal of the credits due for the purchase of goods or sets of goods, the administrator must adopt the following procedures, in the order mentioned:

I - notify the withdrawers and excluded persons, observing the provisions of Article 67 of this Regulation, that the values related to the return of the amounts they paid to the common and reserve funds are at their disposal;

II - notify the group participants, except for the excluded and withdrawers, that the balances existing in the common and reserve funds are at their disposal, proportionally to their respective monthly installments paid.

Art. 50. Thirty (30) days after the returns and restitutions referred to in the previous article, the administrator must, monthly, notify the group participants, except for the excluded and withdrawers, that the values related to the receipt of debts from non-compliant consortium members are at their disposal, proportionally to their respective monthly installments paid.

Art. 51. For the restitutions and returns referred to in this Chapter, the administrator must send a letter or telegram notifying the creditor consortium members, the withdrawers, and the excluded persons.

Art. 52. The closure of the group's operations must be effected within thirty days after the delivery of all due goods, the receipt of all debts, or after exhausting all means of collection admitted in law, and the communication of the return of resources in accordance with Articles 49 and 50 of this Regulation.

Sole Paragraph. In the event of resources not sought by consortium members, withdrawers, or excluded persons, on the date of the group's accounting closure, the administrator assumes the status of debtor of the mentioned balances, complying with the legal provisions that regulate the creditor/debtor relationship of the Brazilian Civil Code.

CHAPTER X

Of the Ordinary General Assemblies

SECTION I

Of the Constitution Assembly

Art. 53. In the ordinary general assembly for the constitution of the group, the administrator must:

I - prove the placement of at least 70% (seventy percent) of its quotas;

II - promote the election of up to three consortium members who, in the capacity of group representatives and with a free mandate, will be responsible for monitoring the administrator's acts in the conduct of the consortium operations of the respective group;

III - make available to consortium members who have the right to vote in ordinary and extraordinary general assemblies, as regulated in Paragraph 2 of Article 55 and Article 60 of this Regulation, providing a copy whenever requested:

a) the list containing the name and complete address of all its participants, presenting, if applicable, a document formalizing the consortium member's disagreement with the disclosure of this information, signed upon signing the adhesion contract;

b) the calendar with the due dates of the group's installments and the dates of the respective assemblies;

IV - submit for the group's decision:

a) the period provided for in Paragraph 2 of Article 14 of this Regulation;

b) the option for advance payment of installments during the group, both by selected and non-selected consortium members, as provided for in item IV of Article 39 of this Regulation;

c) the option for warranty break insurance and/or life insurance.

Sole Paragraph 1. It is permitted to hold, on the same date and in a single event, the constitution assembly and the first selection assembly, observing the provisions of item I of Paragraph 1 of Article 55 of this Regulation.

Sole Paragraph 2. In the constitution assembly, if held separately, the possibility of selections is prohibited.

Sole Paragraph 3. The adhering consortium member may decide on their stay or not in the group, due to:

I - failure to prove the provisions of item I of this article;

II - non-compliance with the provisions of item III of this article, or incomplete presentation of the list referred to in its sub-item "a".

Sole Paragraph 4. Employees, partners, managers, directors, and agents with management powers of the administrator or companies linked to it may not run for election as group representatives.

Sole Paragraph 5. The change of the scheduled due date in the calendar referred to in sub-item "b" of item III of this article, if the period provided for in item I of Article 37 of this Regulation is not observed, will be subject to prior approval by an ordinary general assembly.

Art. 54. The group representatives, elected in accordance with item II of the previous article, will have access, on any date, to all statements and documents pertinent to the group's operations.

Sole Paragraph. The group representatives must be non-selected consortium members, observing that:

I - the replacement of a representative due to their selection must occur in the ordinary general assembly subsequent to that of their respective selection, in accordance with item II of the previous article;

II - the group representative may, at any time, at the group's discretion, be replaced by deliberation of the majority of consortium members, in an ordinary general assembly.

SECTION II

Of the Other Ordinary General Assemblies

Art. 55. The ordinary general assembly is intended for selection and for attending to and providing information to consortium members.

Sole Paragraph 1. The ordinary general assembly:

I - must be held by the sixth business day after the due date of the group's installments, monthly, in a location, day, and time previously established by the administrator;

II - will be public and held in a single call, with any number of consortium members, their legal representatives, or duly constituted proxies, and the administrator may represent absentees if so provided contractually.

Sole Paragraph 2. Each participation quota in the group will grant the right to one vote in the ordinary general assembly, and consortium members up to date with the payment of their contributions and those with up to two installments in arrears, consecutive or not, may deliberate and vote.

Sole Paragraph 3. The holding of the ordinary general assembly referred to in this section is mandatory for the purpose of attending to and providing information to consortium members.

CHAPTER XI

Of the Extraordinary General Assemblies

Art. 56. It is the competence of the extraordinary general assembly of consortium members to deliberate on:

I - proposal to the Central Bank of Brazil:

a) of the substitution of the administrator, in the event of irregularities in the compliance with legal and regulatory provisions related to the administration of the consortium group or the clauses established in the adhesion contract;

b) by the administrator, at its convenience, of the transfer of a group to another consortium administrator, which must satisfy legal and regulatory requirements;

c) by the administrator, for the merger of consortium groups administered by it;

II - extension of the group's duration in the occurrence of facts that excessively burden the consortium members or other events that hinder the satisfaction of their obligations;

III - suspension of the payment of up to two installments, with a consequent extension of the period by an equal amount, in the occurrence of facts that excessively burden the consortium members or other events that hinder the satisfaction of their obligations;

IV - closure of the group in cases of withdrawals or exclusions in numbers that compromise the delivery of the goods or sets of goods to the active consortium members within the period established in the contract;

V - in the case of a consortium group linked to the price of the good, closure of the group or substitution of the good, in the event of the discontinuation of production of the good referenced in the contract.

Sole Paragraph. In the case provided for in item V of this article, the administrator must:

I - formally request from the manufacturer/assembler the information necessary for the perfect characterization regarding the discontinuation of production of the good object of the group, on the first business day subsequent to knowledge of the fact;

II - convene an extraordinary general assembly, within a maximum period of three business days from the receipt of information regarding the discontinuation of production of the good, or within a maximum period of ten business days from the formal request, in the absence of a response from the manufacturer/assembler.

Art. 57. The extraordinary general assembly must be convened by the administrator, which is obliged to do so within a maximum period of five days, counted from the date of request by at least 30% (thirty percent) of the active participants of the group.

Art. 58. The convening of the extraordinary general assembly will be made by sending a letter or telegram notifying all active participants of the group, with up to eight days of advance notice of its holding, this period being counted including the day of the holding and excluding the day of the dispatch of the letter.

Art. 59. The convening must necessarily contain information regarding the day, time, and location where the assembly will be held, as well as the matters to be deliberated.

Art. 60. Each quota will grant the right to one vote in the extraordinary general assembly, and participants up to date with the payment of contributions or with up to two installments in arrears, consecutive or not, may vote.

Art. 61. The deliberations of the extraordinary general assembly, which will be installed with any number of participants, will be taken by a majority of the votes of the consortium members present, with blank votes not being counted.

Art. 62. Participants of the group, their legal representatives, and duly constituted proxies with specific powers to deliberate on the matter contained in the convening of the assembly may vote in the extraordinary general assembly, observing that, in deliberations regarding the matters related to items II, III, IV, and V of Article 56 of this Regulation, only consortium members who have not received the good may vote.

Art. 63. In the extraordinary general assembly intended to deliberate on the matters referred to in Article 56, the administrator may only represent the consortium member if they grant specific powers for the event, with the provisions of item II of Paragraph 1 of Article 55 of this Regulation not applying in this case.

CHAPTER XII

Of the Substitution of the Good Withdrawn from Manufacturing

Art. 64. Deliberated in an extraordinary general assembly the continuation of the group with the choice of another good or set of goods, in accordance with item V of Article 56 of this Regulation, the following criteria will be applied in the charging of monthly installments:

I - those of those who have been selected, due or in arrears, will remain at the previous value and will only be updated when there is a change in the price of the new good or set of goods and in the same proportion;

II - those of those who have not yet been selected will be calculated based on the price of the new good or set of goods on the date of substitution and subsequent alterations, observing that:

a) those already paid must be updated on the date of substitution, according to the new price, with the resulting value being added to or subtracted from the installments due, depending on whether the price of the new good or set of goods is higher or lower, respectively, than that originally planned in the plan;

b) having paid an amount equal to or greater than the price of the new good or set of goods valid on the date of the extraordinary general assembly:

1. the consortium member will have the right to acquire the good or set of goods after their selection by lottery;

2. the amount collected in excess must be returned, independent of selection, to the extent of the group's resource availability.

CHAPTER XIII

Of the Dissolution of the Group by Decision of the EGA

Art. 65. Deliberated in the extraordinary general assembly the dissolution of the group:

I - the consortium members who received the credit will collect the due contributions related to the common fund on their respective due dates, readjusted:

a) by a price index of a regularly calculated and publicly known series, established in the EGA, if participants of consortium groups linked to the price of the good;

b) by the price index provided for in the adhesion contract, if participants of consortium groups linked to a price index;

II - the amounts collected in accordance with the previous item will be returned monthly, according to cash availability, by rate proportional to the credit balance of each one, first to the active consortium members who did not receive the credit, and subsequently to the withdrawers and excluded persons.

CHAPTER XIV

Of the Withdrawal, Exclusion, and Substitution of the Consortium Member

SECTION I

Of the Withdrawal and Exclusion

Art. 66. The consortium member who formally requests their removal from the group will be considered a withdrawer, and that which fails to fulfill its contractual financial obligations may be excluded.

Sole Paragraph 1. Withdrawal will observe the following:

I - it will be effected on the date of the request;

II - the values eventually paid by the consortium member under any title will be returned to the consortium member immediately, plus the earnings from their financial application, provided that they did not participate in the selection in an ordinary general assembly and have withdrawn:

a) within seven days of signing the adhesion contract, whenever the contracting occurs outside the administrator's premises;

b) in the situations referred to in Paragraph 3 of Article 53 of this Regulation.

III - in other cases, only the amounts paid to the common fund and the reserve fund will be returned, as provided for in Article 67 of this Regulation.

Sole Paragraph 2. Exclusion for non-compliance may occur, independent of notification or judicial interpellation, in case of failure to pay two or more consecutive or alternating monthly installments.

Sole Paragraph 3. Before exclusion, the non-compliant participant may restore their rights, through the payment of the respective installments and payment differences in arrears, with their values readjusted, plus the interest and late payment penalty stipulated in the contract.

Sole Paragraph 4. The withdrawal or exclusion of a selected consortium member is prohibited.

Sole Paragraph 5. The consortium member who, after having caused the cancellation of the selection, withdraws without having paid the difference due, must reimburse the group at the moment when the values to which they are entitled are returned to them.

Art. 67. To the withdrawers or excluded participants, or to their successors, the amounts they paid to the common and reserve funds will be returned within sixty days after the last credit due for the purchase of the good is placed at the disposal of the group's consortium members, observing that:

I - on the date of placing the last credit due at the disposal of the group's consortium members, the value pertinent to each excluded or withdrawer will be calculated based on the value of the credit, valid on that date;

II - a reduction percentage, referring to the prefixation of damages caused to the group, inversely proportional to the participation of the excluded or withdrawer, will be applied to the calculated value, the product of which will be credited to the group, observing:

a) in the case of a participant of a group linked to the price of the good:

Amortized Percentage: Reducer:

up to 40% 15%

above 40% up to 60% 10%

above 60% up to 80% 5%

above 80% zero;

b) in the case of a participant of a group linked to a price index:

Amortized Percentage: Reducer:

up to 40% 20%

above 40% up to 60% 15%

above 60% up to 80% 10%

above 80% zero;

III - the amount to be refunded shall also be deducted the amount related to remuneration for the administrator, appropriated on the date of the return in question, corresponding to the product of the number of months of exclusion/withdrawal by the installment value calculated in the manner of item III of Article 25 of this Regulation, considering for the purpose of this calculation:

a) the same value of the credit referred to in item II of this article;

b) 50% (fifty percent) of the percentage fixed in the adherence contract regarding the administrative fee.

SECTION II

Of the Substitution of the Consortium Member

Article 68. The consortium member who is admitted to the group, in substitution for the excluded or withdrawing member, shall be obligated to pay the installments of the contract, observing the provisions as follows:

I - the installments to be due shall be collected normally, in the manner provided for other participants of the group;

II - the installments and differences of contributions due shall be paid until the deadline provided for the closure of the group, in installments or in a single payment, updated in the manner provided in the contract;

III - the installments already paid by the excluded or withdrawing member shall be settled by the admitted consortium member until the deadline provided for the closure of the group, according to the value in effect on the day of the assembly of the month, and the amounts received shall be credited to the common fund of the group.

CHAPTER XV

Of the Consortium Group Adherence Contract

Article 69. The adherence contract is the instrument, signed by the consortium member and the administrator, that creates a legal and obligatory link between the parties and by which the consortium member formalizes their entry into a consortium group.

Sole paragraph. The contract shall observe the provisions of Section III, Article 54, of Law No. 8,078, of 11.09.90.

Article 70. The consortium group adherence contract shall contain:

I - the complete identification of the contracting parties;

II - the object of the plan, observing the provisions of Article 2 of this Regulation;

III - the method of calculating the first and subsequent installments, observing the provisions of Article 25 of this Regulation;

IV - the duration of the group;

V - the specification of the percentage to be charged as:

a) administrative fee;

b) reserve fund;

VI - the obligation to make monthly payments of the contributions provided in Article 25 of this Regulation;

VII - the list of payments to which the consortium member will be subject, observing the provisions of Article 26 of this Regulation;

VIII - the location for holding the assemblies of the respective groups and where the consortium member can obtain all information regarding the group and their participation, as well as whether the group is national or local;

IX - the obligation that the acquired asset be subject to fiduciary alienation, in the manner provided in Section II of Chapter IV of this Regulation;

X - other types of guarantees, proportional to the due installments, that may be required from the consortium member contemplated, in addition to that provided in the previous item;

XI - the prohibitions referred to in the sole paragraph of Article 5 and Article 27 of this Regulation;

XII - the provisions referred to in Articles 1, 8, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 35, 36, 37, 38, 39, 42, 43, 44, 45, 66, and 67 of this Regulation;

XIII - the method of drawing lots and the criterion for tie-breaking bids;

XIV - the provision that the consortium member may withdraw from the contract under the terms of Article 66 of this Regulation;

XV - location and date of signatures.

Sole paragraph 1. The consortium group adherence contract linked to the price of the asset shall also contain:

I - the criterion for defining the price of the asset, which will be used monthly as the basis for calculating installments;

II - the provisions of the sole paragraph of Article 4 of this Regulation.

Sole paragraph 2. The consortium group adherence contract linked to a price index shall also contain:

I - the definition of the price index that will adjust the monthly installments, as well as the substitute index, observing the provisions of Article 2 of this Regulation;

II - the provisions of the sole paragraph of Article 4 of this Regulation.

CHAPTER XVI

Of General Provisions

Article 71. For the purposes of the provisions of the sole paragraph of Article 9 and the sole paragraph of Article 53 of this Regulation, a company shall be considered linked:

I - in which one participates with 10% (ten percent) or more of the capital of another, directly or indirectly;

II - in which administrators, as well as their relatives up to the second degree, of one participate, jointly or individually, with 10% (ten percent) or more of the capital of another, directly or indirectly;

III - in which partners or shareholders with 10% (ten percent) or more of the capital of one participate with 10% (ten percent) of the capital of another, directly or indirectly;

IV - that have a common administrator.

Article 72. The difference in the life insurance indemnity, if any, after the consortium member's debt balance has been amortized, shall be immediately delivered by the administrator to the beneficiary indicated by the quota holder or, in their absence, to their successors.

Article 73. In cases where the asset is reclaimed, judicially or extrajudicially, the administrator shall alienate it.

Sole paragraph 1. The resources collected shall be destined to the payment of overdue and due installments, with appropriation to the common or reserve funds, as appropriate, in accordance with the provisions of this Regulation.

Sole paragraph 2. Any positive balance that may exist shall be returned to the consortium member whose asset was reclaimed, holding them responsible for any negative balance, if applicable.

Article 74. Administrators are obligated to:

I - record minutes of ordinary and extraordinary general assemblies and occurrence reports;

II - prepare the closure bulletin of the group's operations, within sixty days after the last assembly.