Circular No. 799

CIRCULAR N. 000799 ------------------ To Commercial Banks, Investment Banks and Development Banks We inform that the Board of the Central Bank, in view of the provisions of Resolution n. 844, of 13.07.83, decided to clarify: a) the rates provided for in items I and II of Resolution n. 844 represent the total cost of the operation for the borrower of the credit, excluding only the Tax on Credit, Exchange and Insurance Operations, and on Operations relating to Securities and Negotiable Instruments and service fees, when applicable; b) active credit operations with internal resources, with a term equal to or greater than 180 days, may only be carried out with the interest rates provided for in item II of Resolution n. 844 plus post-fixed monetary correction, never higher than the variation indices of the Readjustable National Treasury Bonds - ORTN; c) the use of devices that, in any way, result in the retention of part of the proceeds of the loans or that contribute to the increase of the maximum rates established for credit operations will be considered a serious infraction, subjecting the offender to the penalties provided for in art. 44 of Law n. 4.595, of 31.12.64, and in Decree-law n. 448, of 03.02.69. Brasília-DF, 18 July 1983 Hermann Wagner Wey Antonio Chagas Meirelles Director Director