Circular No. 3026 — Dispenses on Compliance with Paid-in Capital and Adjusted Net Equity Standards and Operational Limits by Consortium Administrators

CIRCULAR NO. 003026

Dispenses on Compliance with Paid-in Capital and Adjusted Net Equity (PLA) Standards, as well as Operational Limits Provided for in Articles 1 and 3 of Circular No. 2,861 of 1999, by Consortium Administrators.

The Collegiate Board of the Central Bank of Brazil, in a session held on February 1, 2001, based on Article 33 of Law No. 8,177 of March 1, 1991,

DECIDED:

Article 1. It is determined that compliance with the paid-in capital and adjusted net equity (PLA) standards referred to in Article 1 of Circular No. 2,861 of February 10, 1999, is an indispensable condition for the operation of consortium administrators.

Article 2. Upon finding non-compliance with the capital and/or equity standards referred to in the preceding article, or with the other operational limits referred to in Article 3 of Circular No. 2,861 of 1999, the Central Bank of Brazil shall summon the legal representatives of the administrator and, if deemed necessary, its controlling shareholders, to provide information regarding the measures to be adopted with a view to regularizing the situation.

Paragraph 1. The appearance of the legal representatives of the administrator or its controlling shareholders must occur within a maximum period of five days from the date of the summons, formalized through the drafting of a specific record by the Central Bank of Brazil.

Paragraph 2. At the discretion of the Central Bank of Brazil, the measures referred to in the main text may be requested via correspondence sent to the legal representatives of the administrator or its controlling shareholders, if deemed necessary.

Paragraph 3. A regularization plan, endorsed by the institution's board of directors and, if applicable, its board of trustees, containing the measures provided for compliance and its respective execution schedule, which may not exceed six months, must be submitted to the Central Bank of Brazil within a period fixed by it, not exceeding sixty days, counted from the drafting of the appearance record or from the date of receipt of the correspondence referred to in the preceding paragraph, for approval.

Paragraph 4. The execution of the regularization plan must be monitored by an independent auditor, who shall send monthly reports to the Central Bank of Brazil.

Paragraph 5. The administrator's failure to meet the capital and/or equity standards referred to in the preceding article, as well as the failure to present the regularization plan within the stipulated period, the non-approval of the plan by the Central Bank of Brazil, or its non-compliance, are prerequisites for the application, where applicable, of the provisions of Article 15 of Law No. 6,024 of March 13, 1974, in compliance with Article 10 of Law No. 5,768 of December 20, 1971.

Article 3. This Circular enters into force on the date of its publication.

Brasília, February 1, 2001

Sérgio Darcy da Silva Alves
Director