CMN Resolution No. 1777 on the Issuance of Debentures and Their Subscription by Financial Institutions

RESOLUTION NO. 001777

DISPOSES ON THE ISSUANCE OF DEBENTURES AND
THEIR SUBSCRIPTION BY FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK OF BRAZIL.

THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH ART. 9 OF LAW NO. 4,595, OF 12.31.64, MAKES PUBLIC THAT THE MONETARY COUNCIL, IN A SESSION HELD ON 12.19.90, CONSIDERING THE PROVISIONS OF ART. 4, ITEM VI, OF THE MENTIONED LAW AND ART. 3, ITEMS I, II, AND IV, OF LAW NO. 6,385, OF 12.07.76,

HAS DECIDED:

ART. 1. THE ISSUANCE OF DEBENTURES FOR PUBLIC SUBSCRIPTION, PROVIDED FOR IN ART. 52 OF LAW NO. 6,404, OF 12.15.76, SHALL DEPEND ON PRIOR APPROVAL FROM THE SECURITIES AND EXCHANGE COMMISSION (CVM).

ART. 2. THE SECURITIES AND EXCHANGE COMMISSION (CVM) SHALL DEFINE THE ISSUANCES THAT WILL BE EXEMPT FROM THE FORMALITIES NECESSARY FOR REGISTRATION AS PROVIDED IN ART. 19 OF LAW NO. 6,385, OF 12.07.76.

ART. 3. FINANCIAL INSTITUTIONS AND OTHER INSTITUTIONS AUTHORIZED TO OPERATE BY THE CENTRAL BANK OF BRAZIL MAY ONLY SUBSCRIBE, ACQUIRE, OR INTERMEDIATE DEBENTURES DESTINED FOR PUBLIC SUBSCRIPTION.

SINGLE PARAGRAPH. THE PROVISIONS OF THIS ARTICLE DO NOT APPLY TO THE SUBSCRIPTION OF DEBENTURES CONVERTIBLE INTO SHARES ARISING FROM THE EXERCISE OF THE PREFERENCE RIGHT PROVIDED FOR IN ART. 57, PARAGRAPH 1, OF LAW NO. 6,404, OF 12.15.76.

ART. 4. IT IS THE RESPONSIBILITY OF THE CENTRAL BANK OF BRAZIL AND THE SECURITIES AND EXCHANGE COMMISSION (CVM) TO OVERSEE COMPLIANCE WITH THE PROVISIONS OF THIS RESOLUTION.

ART. 5. THE CENTRAL BANK OF BRAZIL AND THE SECURITIES AND EXCHANGE COMMISSION (CVM), EACH within their respective spheres of competence, MAY ADOPT THE MEASURES THEY DEEM NECESSARY FOR THE EXECUTION OF THE PROVISIONS OF THIS RESOLUTION.

ART. 6. THIS RESOLUTION ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 7. RESOLUTION NO. 755, OF 08.12.82, IS HEREBY REPEALED.

BRASÍLIA (DF), DECEMBER 19, 1990

IBRAHIM ERIS
PRESIDENT