Circular No. 2.712

CIRCULAR No. 002712 ------------------ Establishes conditions for the granting of financial assistance to multiple banks with commercial portfolios, commercial banks and savings banks, as addressed in Resolution No. 2.308 of 28.08.96. The Board of Directors of the CENTRAL BANK OF BRAZIL, based on item V of art. 10 of Law No. 4.595 of 31.12.64, renumbered by virtue of arts. 19 and 20 of Law No. 7.730 of 31.01.89, and on art. 5 of Resolution No. 2.308 of 28.08.96, D E C I D E D: Art. 1 To set at 100% (one hundred percent) the percentage referred to in subitem "a" of item VI of art. 2 of Resolution No. 2.308 of 28.08.96. Art. 2 To set at 30% (thirty percent) the percentage referred to in subitem "b" of item VI of art. 2 of Resolution No. 2.308 of 28.08.96. Art. 3 Access to the Liquidity Loan and Special Medium-Term lines is obtained through formal application by the financial institution to the Regional Office of the Central Bank of Brazil having jurisdiction over it, to which all required documentation must be submitted. Art. 4 The use of the Liquidity Loan and Special Medium-Term lines is subject to the following conditions: I - movement: all movement of funds arising from operations, whether for withdrawals or for amortization/settlement, is effected by entry in the Banking Reserves account of the financial institution, on the date of the request, and valued entries are prohibited; II - the federal public securities used as collateral for the operations in question may be linked to repurchase operations and must, mandatorily, be blocked from movement in the Special System for Settlement and Custody (SELIC); III - the financial charges of the Liquidity Loan and Special lines are capitalized daily, based on the rates in force during the period in which the institution has a debtor balance, and are payable upon amortizations and settlement of the operation. Art. 5 The federal public securities pledged with the Central Bank of Brazil to comply with reserve requirement/compulsory deposit requirements are included among the other collateral, for the purpose of defining the financial charges of the operations of the Liquidity Loan line. Art. 6 The financial result arising from compliance with a resale clause in a repurchase operation of securities offered as collateral for a financial assistance operation shall be automatically credited to a linked account and may be released if the collateral for the operation is restored. Sole paragraph. The Banking Operations Department (DEBAN) and the Open Market Operations Department (DEMAB) may issue the rules necessary for compliance with the provisions of this article. Art. 7 This Circular enters into force on the date of its publication, with effects as from 01.10.96. Art. 8 Circular No. 2.695 of 20.06.96 is revoked as from 01.10.96. Brasília, 28 August 1996 Francisco Lafaiete de Pádua Lopes Director