CMN Resolution No. 3284 Recognizes the Situation Under Article 4 of Decree-Law No. 1,290 and Consolidates Rules on Applying Funds from Public Enterprises

RESOLUTION NO. 003284

Recognizes the situation under Article 4, main text and clause "c", of Decree-Law No. 1,290, of December 3, 1973, and consolidates the rules regarding the application of funds originating from the own revenues of public enterprises and mixed-economy companies that are part of the Federal Indirect Administration.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on May 25, 2005, considering the provisions of Articles 3 and 4, main text and clause "c", of Decree-Law No. 1,290, of December 3, 1973,

HAS RESOLVED:

Article 1. The situation under Article 4, main text and clause "c", of Decree-Law No. 1,290 of 1973 is recognized for the purpose of applying, in the manner established below, the funds originating from the own revenues of public enterprises and mixed-economy companies that are part of the Federal Indirect Administration.

Article 2. The application of the funds referred to in Article 1 may only be carried out in investment funds administered by Banco do Brasil S.A. or by an institution that is part of the financial conglomerate led by it, constituted in observance of the provisions of this Resolution.

Article 3. With the specific purpose of accommodating the application of the funds referred to in Article 1, the constitution of the following is authorized:

I - common extramarket investment funds;

II - exclusive extramarket investment funds.

Sole Paragraph. The funds referred to in this article are governed, insofar as applicable, by the regulations issued by the Securities and Exchange Commission (CVM) regarding investment funds, and their name must include the expression "extramarket."

Article 4. The portfolios of common or exclusive extramarket investment funds must include:

I - securities issued by the National Treasury, in a percentage not less than 75% (seventy-five percent), acquired in purchases without commitment to resell;

II - certificates or bank deposit receipts issued by an institution that is part of the financial conglomerate referred to in Article 2, in a percentage not exceeding 25% (twenty-five percent).

§ 1. The remaining resources of the extramarket investment funds may be allocated to committed operations with securities issued by the National Treasury, kept in checking accounts, or, subject to the provisions of § 2, directed towards operations in derivatives markets.

§ 2. Operations in derivatives markets:

I - are permitted only for exclusive extramarket investment funds;

II - must be carried out with the primary objective of minimizing risks associated with mismatches in terms and indexers between the fund's assets and the condominium's liabilities; and

III - cannot have a notional value higher than the value of the National Treasury securities included in the fund's portfolio.

§ 3. Of the resources from the placement of certificates or bank deposit receipts in the portfolios of extramarket investment funds, at least 70% (seventy percent) must be applied in rural credit operations.

Article 5. In the common extramarket investment fund:

I - the redemption of quotas must be carried out based on the quota value resulting from the division of the net asset value by the number of fund quotas, both calculated at the close of business;

II - the remuneration of the administering institution for the provision of management and administration services of the fund cannot exceed the equivalent of 0.5% a.a. (five tenths of one percent per year), calculated pro rata die on the net asset value of this fund.

Article 6. The constitution of an exclusive extramarket investment fund depends on the initiative of the public enterprise or mixed-economy company referred to in Article 1, observing that the administration and performance fees, respecting the remuneration limit provided in clause II of Article 5, must be established by mutual agreement between the administering institution and the condominium.

Article 7. The provisions of this Resolution do not apply to public enterprises and mixed-economy companies that carry out activities subject to the supervision of the Central Bank of Brazil.

Article 8. The Central Bank of Brazil and the Securities and Exchange Commission are authorized, within their respective areas of competence, to adopt measures and issue complementary norms necessary for the execution of the provisions of this Resolution.

Article 9. Resolution No. 2,917 of December 19, 2001, and Resolution No. 3,267 of March 10, 2005, are hereby revoked.

Article 10. This Resolution enters into force on the date of its publication.

Brasília, May 25, 2005.

Antonio Gustavo Matos do Vale
Substitute President