Circular No. 2563 — Creates a COSIF subtitle and establishes mandatory reserve requirements on the granting of aval, guarantee, or other securities in loan/financing operations between non-financial natural or legal persons

CIRCULAR N. 002563

Creates a subtitle in COSIF and establishes mandatory collection/mandatory reserve on the granting of aval, guarantee, or other securities in loan/financing operations between non-financial natural or legal persons.

The Board of Directors of the Central Bank of Brazil, in a session held on 26.04.95, taking into account the provisions of Article 10, items III and IV, of Law No. 4.595, of 31.12.64, with the wording given to it by Articles 19 and 20 of Law No. 7.730, of 31.01.89, and based on Article 4, item XII, of the aforementioned Law No. 4.595/64, by delegation of the National Monetary Council,

DECIDED:

Art. 1. Create, in the Accounting Plan of Institutions of the National Financial System - COSIF, the accounting subtitle 3.0.1.30.30-4 - Natural or Legal Non-Financial Persons, with the attributes UBDIELMNZ, to record the granting of aval, guarantee, or other securities in operations whose purpose is to facilitate loans/financing between natural or legal non-financial persons, in the Country.

Sole Paragraph. The values registered under the title BENEFICIARIES OF PROVIDED GUARANTEES must be subject to adequate reclassification.

Art. 2. Establish mandatory collection/mandatory reserve on the values registered in the accounting subtitle referred to in the "caput" of the previous article, by multiple banks, commercial banks, development banks, investment banks, and savings banks.

Art. 3. The exigibility of mandatory collection/mandatory reserve must correspond to 60% (sixty percent) of the arithmetic mean of the daily balances of the operations contracted from 20.04.95, calculated for the respective calculation period.

Paragraph 1. The calculation period is defined as the business days included in a one-week period, starting on Monday and ending on Friday.

Paragraph 2. The adjustment date is defined as the Friday of the week following the calculation period, clarified that, in the event that it is not a business day, the adjustment will be made on the immediately following business day.

Paragraph 3. Exceptionally, the first calculation period will cover the business days included between 02 to 05.05.95, including the extremes, and the respective adjustment will take place on 12.05.95.

Art. 4. The mandatory collection/mandatory reserve must be fulfilled exclusively in cash and will not be entitled to any remuneration.

Art. 5. For the purpose of proving the values subject to collection, financial institutions must fill out the BALANCE STATEMENT OF EXIGIBLE BALANCE - GRANTING OF AVAL, GUARANTEE, OR OTHER SECURITIES, to be published by the Banking Operations Department (DEBAN).

Paragraph 1. The statement referred to in the "caput" of this article must be delivered to the Regional Office of the Central Bank of Brazil where the financial institution is under jurisdiction until the penultimate business day preceding the adjustment date of the respective position.

Paragraph 2. The financial institution that delivers the statement late and/or replaces it after the date provided in the previous paragraph incurs payment of a fine in the amount of R$50.00 (fifty reais), due for each position replaced or included outside the regulatory deadline.

Paragraph 3. Financial institutions that do not have balances in the subtitle referred to are exempt from sending the statement.

Art. 6. The financial institution that presents insufficiency in the mandatory collection/mandatory reserve will incur payment of financial costs calculated on the value of the deficiency.

Paragraph 1. The financial costs will be calculated by the number of business days in which the deficiency persisted, taking as a basis the adjusted average rate of all financing operations registered in the SELIC, regardless of the characteristics of the titles, increased by 30% (thirty percent) per year, calculated in the period between the start date of the deficiency and the day preceding the date of its regularization or the start of the subsequent movement period, and will be due on the following business day.

Paragraph 2. The financial costs related to any past deficiencies will be updated based on the daily rate of Interfinancial Deposits (DI) and debited on the current date.

Paragraph 3. The institution may opt for the debit valued until the third business day following the processing of the changes/entries that gave rise to the financial costs, through communication to the Regional Office of the Central Bank where it is under jurisdiction.

Paragraph 4. The daily factors used for the purpose of calculating the financial cost and the update provided in the second paragraph of this article can be obtained by consulting the PTAX880 and PTAX860 transactions of the Central Bank Information System (SISBACEN).

Art. 7. The financial movement of the mandatory collection/mandatory reserve and the collection of the fine and financial costs provided for in this Circular will be effected through an entry in the "Bank Reserves" account of its holder/conventer.

Paragraph 1. The financial institution not holding a "Bank Reserves" account must enter into an agreement with a financial institution holding this account for the purpose of the movement referred to in the "caput" of this article.

Paragraph 2. The agreement referred to does not imply responsibility of the holder of the "Bank Reserves" account before the Central Bank, except in the event that the entries transited by it are not challenged until the first business day following the event.

Art. 8. The Banking Operations Department (DEBAN) may issue complementary rules for the purpose of operationalizing the mandatory collection/mandatory reserve established by this Circular.

Art. 9. This Circular enters into force on the date of its publication.

Brasília, April 27, 1995

Cláudio Ness Mauch Francisco Lafaiete de Pádua Lopes Director of Norms and Organization Director of Monetary Policy, of the Financial System in exercise