Circular No. 2.387

CIRCULAR N. 002387 ------------------ Provides for the modifications in the share capital, the constitution of the Reserve Fund, the allocation of surpluses and the offsetting of losses of credit cooperatives. The Board of Directors of the Central Bank of Brazil, in a session held on 14.12.93, having regard to the provisions of arts. 4, item IV, 28, item I and paragraph 1, 44, item II, and 89 of Law No. 5.764, of 16.12.71, and based on art. 4, item XII, of Law No. 4.595, of 31.12.64, by competence delegated by the National Monetary Council, D E C I D E D: Art. 1 Credit cooperatives must record directly in the CAPITAL account, of the Chart of Accounts for Institutions of the National Financial System (COSIF): I - without passing through the MONETARY CORRECTION OF PAID-IN CAPITAL account, of COSIF, the monetary correction of the respective share capital; II - without passing through the CAPITAL INCREASE account, of COSIF: a) the payment of capital, in national currency; b) the capitalization of reserves or accumulated surpluses. Paragraph 1 The counterpart of the monetary correction of the share capital, provided for in item I of this article, must be recorded in the MONETARY CORRECTION RESULT account, of COSIF. Paragraph 2 In the event that the cooperative member's participation in the share capital of the credit cooperative is not fully paid up at the time of subscription of the quotas, the difference must be recorded in the CAPITAL TO BE PAID UP account, of COSIF. Paragraph 3 Upon payment of the difference referred to in the previous paragraph, the respective amount must be recorded as a credit to the CAPITAL TO BE PAID UP account, of COSIF. Art. 2 The Reserve Fund of credit cooperatives referred to in art. 28, item I, of Law No. 5.764/71, intended to offset losses verified at the end of each semester and to meet the development of their activities, must be recorded in the LEGAL RESERVE account, of COSIF. Sole paragraph. Credit cooperatives are exempt from the constitution of the legal reserve provided for in COSIF 1.16.5.1. Art. 3 The net surpluses determined at the end of each semester, after deducting the portions related to the formation of mandatory funds, must be allocated, as resolved by the General Assembly: I - to the constitution of reserves; II - to distribution among the cooperative members; III - to maintenance in ACCUMULATED SURPLUSES OR LOSSES. Paragraph 1 The General Assembly must establish, for each reserve to be constituted, the specific purpose and the manner of formation, application and liquidation. Paragraph 2 The reserves constituted must be recorded in the appropriate account of the subgroup breakdown Profit Reserves, observing the resolution of the General Assembly. Art. 4 The losses of credit cooperatives verified at the end of each semester, as resolved by the General Assembly, must be: I - absorbed with the use of resources from the existing balance: a) in the LEGAL RESERVE account; b) in the ACCUMULATED SURPLUSES OR
LOSSES account, when creditor; c) in the other accounts of the subgroup breakdown Profit Reserves; II - distributed among the cooperative members, as provided in the bylaws, when the resources provided for in the previous item are insufficient. Sole paragraph. The losses verified at the end of each semester cannot be distributed by means of reducing the cooperative member's participation in the share capital of the cooperative. Art. 5 This Circular enters into force on the date of its publication. Brasília, 14 December 1993 Cláudio Ness Mauch Director of Norms and Organization of the Financial System