Circular No. 3206 — Amends Circular 2,905 of 1999 Regarding Minimum Terms and Remuneration of Active and Passive Operations in the Financial Market

CIRCULAR NO. 003206

Amends Circular 2,905 of 1999, which provides for minimum terms and remuneration of active and passive operations carried out in the financial market.

The Collegiate Board of the Central Bank of Brazil, in a session held on September 24, 2003, based on arts. 10, 11 and 31, § 2, of Law 8,177 of March 1, 1991, on arts. 8 and 9 of Law 8,660 of May 28, 1993, on item IV of Resolution 1,143 of June 26 1986, on item II of Resolution 1,647 of October 18 of 1989, on art. 10 of Resolution 2,809 of December 21, 2000, and on arts. 3 and 4 of Resolution 2,613 of June 30, 1999, amended by Resolution 2,646 of September 22, 1999,

DECIDED:

Art. 1 Alter art. 5 of Circular 2,905 of June 30 1999, which shall now be in effect with the following wording:

"Art. 5 It is prohibited, with respect to active and passive operations carried out in the financial market:

I - contractual provision of more than one remuneration base or price index, except in the event of extinction of the base or the agreed index;

II - placement, by the issuer or by a company affiliated with it, of securities with a term to run shorter than the respective minimum terms established in this circular.

§ 1 The prohibition referred to in item I does not apply to time deposit contracts as long as the base or the price index prevails that provides greater remuneration to the depositor.

§ 2 For the purposes of item II, issuers and companies are considered affiliated when:

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

II - administrators or their respective spouses or partners and relatives up to the second degree of one participate, jointly or individually, with 10% (ten percent) or more of the capital of the other, directly or indirectly;

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

IV - have a common administrator." (NR)

Art. 2 This circular enters into force on the date of its publication.

Brasilia, September 25, 2003.

Sergio Darcy da Silva Alves
Director