CVM Instruction No. 445 of December 14, 2006 — CVM — BR

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
Approves the Accounting Plan for Regional Investment Funds – COFIR (FINAM, FINOR and FUNRES).

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Board, in a meeting held on this date, in view of the provisions of CMN Resolution No. 1.660, of October 26, 1989, resolved to issue the following Instruction:

Art. 1. The Accounting Plan for Regional Investment Funds – COFIR, attached to this Instruction, which provides for the rules on bookkeeping, asset valuation, revenue recognition and expense appropriation, and preparation of the accounting statements of the Regional Investment Funds of the Amazon, the Northeast and the State of Espírito Santo Recovery, is hereby approved.

Art. 2. The General Superintendent – SGE is authorized to promote alterations, additions or eliminations of a technical-formal nature that are necessary to Chapters 2 and 3 of the Accounting Plan referred to in Art. 1 of this Instruction.

Sole Paragraph. The alterations, additions or eliminations referred to in the caput shall be previously submitted to the Regulation Committee, created by CVM/PTE Ordinance No. 42, of May 6, 2005, and shall not result in alteration, addition or elimination of rules provided for in Chapter 1 of COFIR.

Art. 3. The accounting statements of the Investment Funds governed by this Instruction must be audited annually by an independent auditor registered with the CVM, observing the rules that regulate the exercise of this activity.

Art. 4. This Instruction enters into force on the date of its publication in the Official Gazette of the Union, applying to fiscal years starting from January 1, 2007.

Signed original by
MARCELO FERNANDEZ TRINDADE
President

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 1 – GENERAL PRINCIPLES

Objective
1 - The rules embodied in this Accounting Plan aim to standardize the accounting records of the administrative acts and facts practiced, rationalize the use of accounts, establish rules, criteria and procedures necessary for the obtaining and disclosure of data, enable the monitoring, analysis, evaluation of performance and control of the investment funds specified in item 2, so that the financial statements prepared express, with fidelity and clarity, the real economic-financial situation of the funds.

2 - The rules and procedures, as well as the standardized financial statements provided for in this Plan, are mandatory for the following Investment Funds created by Decree-Law No. 880, of September 18, 1969 and Decree-Law No. 1.376, of December 12, 1974:
a) the Economic Recovery Fund of Espírito Santo – FUNRES; b) the Northeast Investment Fund – FINOR; c) the Amazon Investment Fund – FINAM.

3 - Since the Accounting Plan is an integrated set of rules, procedures and criteria for accounting bookkeeping in a generic way, the guidelines embodied therein, as well as the existence of accounting titles, do not presuppose permission for the practice of operations or services prohibited by law, regulation or administrative act, or dependent on prior authorization from the CVM.

4 - The chapters of this Plan are hierarchized in the order of presentation. Thus, in case of interpretation doubts between General Principles and the List of Accounts, the General Principles prevail.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 1 – GENERAL PRINCIPLES

Bookkeeping
1 - It is the competence of the National Monetary Council to issue general accounting rules to be observed by the Regional Investment Funds. Such competence was delegated to the Securities and Exchange Commission, through CMN Resolution No. 1.660, of 10/26/1989.

2 - The bookkeeping must be complete, keeping in permanent records all acts and administrative facts that modify or will modify, immediately or not, its patrimonial composition.

3 - The Regional Investment Funds have accounting bookkeeping distinct from that of the Operating Bank.

4 - The simple accounting record does not constitute a sufficiently probative element; the bookkeeping must be based on suitable proof for the perfect validity of the acts and administrative facts.

5 - In addition to the legal provisions and specific regulatory requirements regarding bookkeeping, the fundamental principles of accounting are observed, with the administrator being responsible for:
a) adopting uniform methods and criteria over time, with relevant modifications being evidenced in explanatory notes, quantifying the effects on financial statements, when applicable; b) recording revenues and expenses in the period in which they occur and not on the date of actual entry or disbursement, in respect of the accrual basis; c) making the daily appropriation of earnings, including interest on late payments, revenues, gains, profits, expenses, losses and deficits, regardless of periodic result calculation; d) calculating results in fixed time periods, observing the calculation periods as provided in the corresponding normative act; e) carrying out the appropriate reconciliations of accounting titles with their respective analytical controls and keeping them updated, as determined in the appropriate sections of this Plan.

6 - The accounting classification form of any assets, rights and obligations does not alter, in any way, their characteristics for fiscal and tax purposes, which are governed by their own regulation.

7 - The provision of inaccurate information, the lack or delay of accounting reconciliations and the bookkeeping kept behind by a period exceeding 18 (eighteen) days, subsequent to the closing of each month, or processed in disagreement with the rules embodied in this Accounting Plan, subject the Operating Bank to applicable penalties, in accordance with the law or regulation.

8 - The qualified professional responsible for accounting must conduct the bookkeeping within the required standards, observing the fundamental principles of accounting, paying attention, even, to professional ethics, with the CVM responsible for communicating to the competent body, whenever irregularities are proven, so that the appropriate measures are applied.

9 - Any consultations regarding the interpretation of rules and procedures provided for in this Plan, as well as adequacy to specific situations, must be directed to the CVM, and must be signed by the administrator and the qualified professional responsible for accounting and accompanied by the position/manifestation of the independent auditor.

10 - The existence of eventual consultations regarding the interpretation of current regulatory rules or even suggestions for the re-examination of a certain subject does not exempt the interested administrator from compliance.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 1 – GENERAL PRINCIPLES

Fiscal Year
1 - The fiscal year of the Funds will take place in the period from January 1 to December 31 of each year, in accordance with CMN Resolution No. 1.660, of 10/26/89, modified by CMN Resolution No. 2.487, of 04/30/1998.
Classification of Accounts
1 - Assets – the accounts are arranged in descending order of liquidity degree, in the following groups:
a) Current:
I - cash and cash equivalents;
II - rights realizable in the course of the twelve months following the balance sheet; III - application of resources in the advance payment of expenses resulting in an obligation to be fulfilled by third parties in the course of the twelve months following the balance sheet; b) Long-Term Realizable:
I - rights realizable after the end of the twelve months following the balance sheet; II - application of resources in the advance payment of expenses resulting in an obligation to be fulfilled by third parties after the end of the twelve months following the balance sheet.

2 - Liabilities – the accounts are classified in the following groups, arranged in descending order of exigibility degree:
a) Current:

obligations with maturity in the course of the twelve months following the balance sheet;
b) Long-Term Exigible:
obligations with maturity after the end of the twelve months following the balance sheet.

3 - Shareholders' Equity – is divided into:
a) Tax Incentive Resources; b) Unitholders; c) Accumulated Results.

4 - Corrective Accounts – appear in a subtractive manner, after the group, subgroup, breakdown or account to which they refer.

5 - Compensation Accounts - Compensation Accounts are used to record any administrative acts that may become effective rights, gains, obligations, risks or burdens, resulting from future, foreseen or fortuitous events.

6 - Internal Use Subtitles – internal use breakdowns or official use breakdowns may be adopted, by legal or regulatory requirement or due to internal control and managerial needs.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 1 – GENERAL PRINCIPLES

Financial Statements
1 - The preparation of the following financial statements, tables and supplementary statements is mandatory – standardized according to documents No. 1 to 8, observing the list of accounts, supplemented, whenever necessary for the complete clarification of the patrimonial situation and results, by explanatory notes and other information:
a) daily, Daily Calculation of Shareholders' Equity Statement (document No. 1); b) monthly, on the last day of the month, Analytical Verification Trial Balance (document No. 2); c) semi-annually, on June 30 and December 31 of each year, Statement of Composition and Diversification of the Portfolio (document No. 3); d) annually, on the date of closing of the fiscal year:

Balance Sheet (document No. 4);
Income Statement (document No. 5);
Statement of Evolution of Securities and Financial Assets (document No. 6);
Statement of Evolution of Shareholders' Equity (document No. 7);
Statement of Movement of Resources (document No. 8);

2 - The operating banks will send, daily, to the Stock Exchanges, within 1 (one) business day of the date to which it refers, the Daily Calculation of Shareholders' Equity Statement (document No. 1), in compliance with the provisions of Art. 16, of the Regulation annexed to CMN Resolution No. 1.660/89.

3 - Up to 30 (thirty) days after the closing of each semester, the operating banks will send to the Securities and Exchange Commission and to the Stock Exchanges, the Statement of Composition and Diversification of the Portfolio (document No. 3), as determined by Art. 17, of the cited Regulation.

4 - The statement referred to in the previous item, relating to the position of December 31 of each year, will be complemented with the sending of the annual financial statements mentioned in item 1.d above (documents No. 4 to 8), accompanied by the explanatory notes and the opinion of the independent auditor (paragraph 1, of the aforementioned Art. 17, modified by CMN Resolution No. 2.487/98).

5 - The annual financial statements (documents No. 4 to 8), accompanied by the explanatory notes and the opinion of the independent auditor, will be published, within 60 (sixty) days after the closing of the fiscal year to which they refer, in the newspapers destined for the disclosure of information related to the Fund (paragraph 1, of Art. 20, of the same Regulation).

6 - The explanatory notes must include relevant and complementary information to that contained in the financial statements they accompany, containing, at a minimum, the following information:
a) Operational Context – describe the objective, the adopted and/or determined investment strategy and its legal and normative basis, as well as the risks inherent to such strategy; also describe the efforts made towards the recovery of assets; b) Presentation and preparation of financial statements - describe that they were prepared in accordance with accounting practices applicable to Regional Investment Funds, supplemented by the rules provided for in the Accounting Plan for Regional Investment Funds;

c) Summary of main accounting practices – must contain the description of the criteria adopted for the recording of revenues and expenses, as well as for the evaluation and accounting of the assets comprising the fund's portfolio, detailed by type of assets and by evaluation criteria, as the case may be; d) Administration fee – describe the criteria for calculating and paying the administration fee; e) Information disclosure policy – inform the information disclosure policy, mentioning the communication media used, such as: newspaper, internet, mail and others, as well as the forms of access to the unitholder service; f) Other information – include the average net asset value of the fiscal year; g) Subsequent events – describe subsequent events to the closing date of the period that have, or may have, relevant effects on the financial situation and future results of the fund.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 2 – EVALUATION AND ACCOUNTING APPROPRIATION CRITERIA

Portfolio of Securities
1 - The evaluation of the securities comprising the portfolio will follow the criteria established in the current rules.

2 - FIXED INCOME SECURITIES will be evaluated by the acquisition cost plus their respective earnings. Adequate provisions will be made to adjust them to the probable realization value.

3 - VARIABLE INCOME SECURITIES will be evaluated, in the case of shares quoted on the Stock Exchange, by the average quotation of the last day they were traded, or by the value obtained in an auction, whichever is lower; unquoted shares, by the net asset value, based on the company's balance sheet from the last fiscal year, if lower than the nominal value, or by the nominal value, if lower than the book value. Adequate provisions will be made to adjust them to the probable realization value.

4 - Market value is considered the net realization price through negotiation of the security in an active market, where buyer and seller are independent, without corresponding to a compulsory transaction or resulting from a liquidation process.

5 - The constitution of the provision referred to in items 2 and 3 above must consider, at a minimum, the following procedures:

SHARES:
A provision will be constituted on the total value of shares of companies that are in the process of bankruptcy, extinction, liquidation, judicial reorganization or dissolution, of companies for which there is no availability, until the end of the immediately subsequent fiscal year, of financial statements from the last fiscal year or of companies for which there is information of abandoned or irregular projects.
DEBENTURES:
a) Provisions equivalent to 100% of the value of each installment overdue for more than 60 days will be constituted. b) Provisions equivalent to 100% of the updated outstanding balance, including overdue and future installments, will be constituted for debentures that are in the process of judicial collection, which must be initiated after 180 days of delay, or for debentures of companies for which there is information of abandoned or irregular projects.

6 - The adjustments and provisions determined herein do not exempt administrators from making all necessary efforts towards the recovery of the asset.

Other Credits
1 - Dividends/Interest on Own Capital to be Received not received until the date established in the General Assembly that approves them or, in the absence of this deadline, until the end of the following fiscal year to which they refer, must be fully provisioned. The relevant judicial collection process must be initiated after 180 days of delay.

2 - Interbank transfer balances considered to be of doubtful liquidity must be fully provisioned.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 2 – EVALUATION AND ACCOUNTING APPROPRIATION CRITERIA

Expenses
1 - The negative differences between the negotiation value of variable income securities and their respective cost values will be recorded in a specific subtitle of the VARIABLE INCOME SECURITIES EXPENSES account, which, according to the nature of the operation, may be: "Discount on Sale of Securities at Auction" or "Discount on Direct Sale of Securities".

2 - The reductions occurring in the evaluation values of the Fund's Portfolio shares will be recorded as a debit to the VARIABLE INCOME SECURITIES EXPENSES account, subtitle Undervaluation of Share Portfolio, in counterpart to a specific subtitle of the VARIABLE INCOME SECURITIES account.

3 - The fee due to the operating bank for the administration of the Fund's Portfolio is of monthly competence and will be recorded as a debit to PORTFOLIO ADMINISTRATION FEE, in counterpart to the OPERATING BANK (BANDES, BASA or BNB) - FREE MOVEMENT DEPOSITS account. In the case of insufficient available balance to pay said expense, the difference will be credited to PORTFOLIO ADMINISTRATION FEE TO BE PAID.

4 - While not paid by the Fund to the operating bank, the value recorded as portfolio administration fee to be paid will be monetarily updated, in the same manner as the remuneration of the Fund's cash equivalents, as a debit to MONETARY UPDATE OF PORTFOLIO ADMINISTRATION FEE TO BE PAID.

5 - The remuneration due to the Executive Group for Economic Recovery of the State of ES (GERES) will be recorded as a debit to REMUNERATION OF THE EXECUTIVE GROUP FOR ECONOMIC RECOVERY OF THE STATE OF ES (GERES), in counterpart to the OPERATING BANK (BANDES) – FREE MOVEMENT DEPOSITS account. In the case of insufficient available balance to pay said expense, the difference will be credited to GERES REMUNERATION TO BE PAID.

6 - While not paid by the Fund to GERES, the value recorded as GERES REMUNERATION TO BE PAID will be monetarily updated, in the same manner as the remuneration of the Fund's cash equivalents, as a debit to MONETARY UPDATE OF GERES REMUNERATION TO BE PAID.

7 - Any losses resulting from applications in fixed or variable income securities will be recorded as a debit to OPERATIONAL LOSSES, in counterpart to the account that records the cost of the securities.

8 - Expenses incurred on an occasional basis, the responsibility of the Fund, that do not fit into the other debit result accounts, will be debited to OTHER EXPENSES.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
ACCOUNTING PLAN FOR REGIONAL INVESTMENT FUNDS
SECTION 2 – EVALUATION AND ACCOUNTING APPROPRIATION CRITERIA

Revenues
1 - The earnings of fixed income securities will be appropriated daily, observing the following criteria:
a) the basic costs, financial charges and charges on delays, including interest on late payments, will be appropriated as a debit to the account itself that records the costs of the securities, in counterpart to a specific subtitle of FIXED INCOME SECURITIES EARNINGS. b) the received interest will be recorded as a debit to OPERATING BANK (BANDES, BASA or BNB) - FREE MOVEMENT DEPOSITS, in counterpart to the account that records the cost of the securities. c) the compliance bonuses will be recorded as a debit to the COMPLIANCE BONUS account, a corrective of the operational revenue group, in counterpart to the account that records the cost of the securities.

2 - The positive differences between the negotiation value of variable income securities and their respective cost values will be recorded in a specific subtitle of VARIABLE INCOME SECURITIES REVENUES account, which, according to the nature of the operation, can be: "Premium on Sale of Securities at Auction" or "Premium on Direct Sale of Securities".

3 - Dividends and interest on own capital from variable income securities will be recorded from the knowledge of their approval in the Shareholders' General Assembly, regardless of their actual receipt, as a debit to DIVIDENDS/INTEREST ON OWN CAPITAL TO BE RECEIVED and as a credit to a specific subtitle of the VARIABLE INCOME SECURITIES REVENUES account (if dividends/interest from the own portfolio) or as a credit to the DIVIDENDS/INTEREST ON OWN CAPITAL BELONGING TO THIRD PARTIES account (if dividends/interest arising from applications in the form of Article 9 of Law No. 8.167/91). Upon receipt of such rights, the corresponding credit will be made in the DIVIDENDS/INTEREST ON OWN CAPITAL TO BE RECEIVED account.

4 - Dividends and interest on own capital, relating to the shares of the own portfolio, declared and not received within the period established in the Shareholders' General Assembly or until the end of the fiscal year in which they were deliberated, will be recorded as a debit to the PROVISION EXPENSES account, subtitle Dividends/Interest on Own Capital to be Received and as a credit to the PROVISION FOR REVENUES TO BE RECEIVED account, subtitle Dividends/Interest on Own Capital to be Received.

5 - The provisions constituted on declared and not received dividends and interest on own capital will be reversed upon receipt. If the provision was constituted in previous fiscal years, the reversal must be made as a credit to the PROVISION REVERSAL account, subtitle Dividends/Interest on Own Capital to be Received.

The dividends and interest on own capital in arrears will be monetarily updated, as interest on late payments, until the date of their receipt, according to the rate in force for the interest on late payment of debts, with the values resulting from this update recorded as a credit to VARIABLE INCOME SECURITIES REVENUES, subtitle Dividends/Interest on Own Capital, regardless of the time when they were approved.

7 - The increases occurring in the evaluation values of the Fund's Portfolio shares will be recorded as a credit to the VARIABLE INCOME SECURITIES REVENUES account, subtitle Share Portfolio Appreciation, in counterpart to a specific subtitle of the VARIABLE INCOME SECURITIES account.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.

8 - The remuneration incident on the resources deposited in the operating bank and not yet invested by the Fund shall be recorded as a debit to OPERATING BANK (BANDES, BASA or BNB) - FREELY MOVABLE DEPOSITS or OPERATING BANK (BANDES, BASA or BNB) - DEPOSITS LINKED TO SUBSCRIPTION, in counterpart to the account REMUNERATION ON AVAILABILITIES AND DEPOSITS LINKED TO SUBSCRIPTION.

9 - Financial charges shall apply to the values of transfers to financial agents, made by FUNRES, which shall be appropriated daily, in counterpart to INCOME FROM TRANSFER OPERATIONS. The balances of interbank transfers considered as doubtful settlement shall be recorded as a debit to PROVISION EXPENSES, subheading Interbank Transfers and as a credit to PROVISION FOR LOSSES ON INTERBANK TRANSFERS.

10 - The provisions constituted for losses on interbank transfers shall be reversed upon receipt. If the provision was constituted in previous fiscal years, the reversal must be made as a credit to the REVERSAL OF PROVISIONS account, subheading Interbank Transfers.

11 - The reversals of provisions for title devaluation, constituted in previous fiscal years, shall be credited to the REVERSAL OF PROVISIONS account, subheadings "Fixed Income Titles" or "Variable Income Titles".

12 - Revenues occurring on an occasional basis, and which do not fit into other credit income accounts, shall be recorded as a credit to the OTHER INCOMES account.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
SECTION 2 – EVALUATION AND ACCOUNTING APPROPRIATION CRITERIA
5. Exercise Result
1 - Calculation a) The exercise result, positive or negative, shall be calculated by transferring the balances of the specific revenue and expense accounts of the period to the RESULT CALCULATION account. b) The positive elements of the income are the credit balances of the following accounts:

REMUNERATION ON AVAILABILITIES AND DEPOSITS LINKED TO SUBSCRIPTION;
INCOME FROM FIXED INCOME TITLES;
INCOME FROM VARIABLE INCOME TITLES;
INCOME FROM TRANSFER OPERATIONS;
REVERSAL OF PROVISIONS;
OTHER INCOMES.
c) The negative elements of the income are the debit balances of the following accounts:
VARIABLE INCOME TITLE EXPENSES;
PORTFOLIO ADMINISTRATION FEE;
MONETARY UPDATE OF THE PORTFOLIO ADMINISTRATION FEE PAYABLE;
REMUNERATION OF THE EXECUTIVE GROUP FOR THE ECONOMIC RECOVERY OF THE STATE OF ES (GERES);
MONETARY UPDATE OF GERES REMUNERATION PAYABLE;
PROVISION EXPENSES;
OPERATIONAL LOSSES;
DELINQUENCY BONUS;
OTHER EXPENSES.

2 - Destination a) Once the exercise result is calculated, the balance shall be transferred through an entry in the ACCUMULATED RESULTS account, subheading "Exercise Result", breakdown "Profit/Loss of the Exercise", in counterpart to the RESULT CALCULATION account. b) On the first business day following the closing of the fiscal year, the balances recorded in the subheading "Exercise Results", breakdowns "Profit/Loss of the Exercise", "Variation of Shares Swapped in Auctions" and "Reverted Investment Certificates", shall be transferred to the subheading "Results of Previous Exercises", of the ACCUMULATED RESULTS account.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 1 – LIST OF ACCOUNTS
ASSETS
CURRENT AND LONG-TERM REALIZABLE
Availabilities
Operating Bank (BANDES, BASA or BNB) - Freely Movable Deposits Income Tax ICMS Values to be Received Auction Operations Interbank Transfers Debtors for Transfers to Financial Agents BANDES BANESTES Other Institutions (-) Provision for Losses on Interbank Transfers BANDES BANESTES Other Institutions Securities and Financial Instruments Fixed Income Titles Debentures of Own Portfolio Debentures Convertible into Shares – Normal Debentures Convertible into Shares – Overdue Non-Convertible Debentures – Normal In accordance with Law 8167/91 In accordance with Provisional Measure 2199/01 Non-Convertible Debentures – Overdue In accordance with Law 8167/91 In accordance with Provisional Measure 2199/01 Debentures Linked to Direct Swaps Debentures Convertible into Shares Non-Convertible Debentures Variable Income Titles Own Portfolio Shares Shares Linked to Direct Swaps Units of Other Funds (-) Provision for Title Devaluation (-) Fixed Income Titles (-) Variable Income Titles Linked Credits Operating Bank (BANDES, BASA or BNB) - Deposits Linked to Subscription Income Tax ICMS Judicial Deposits Others

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
Other Credits
Revenues to be Received
Dividends/Interest on Own Capital to be Received Own Portfolio Shares Shares Linked to Direct Swaps Other Revenues to be Received (-) Provision for Revenues to be Received (-) Dividends/Interest on Own Capital to be Received (-) Other Revenues to be Received COMPENSATION ACCOUNTS Depositors of Values in Custody

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 1 – LIST OF ACCOUNTS
DEBIT INCOME ACCOUNTS
Operational Expenses
Variable Income Title Expenses
Discount on Sale of Titles in Auction
Discount on Direct Sale of Titles
Devaluation of Share Portfolio
Portfolio Administration Fee
Monetary Update of Portfolio Administration Fee Payable Remuneration of the Executive Group for the Economic Recovery of the State of ES (GERES) Monetary Update of GERES Remuneration Payable Provision Expenses Fixed Income Titles Variable Income Titles Dividends/Interest on Own Capital to be Received Other Revenues to be Received Interbank Transfers Operational Losses Other Expenses RESULT CALCULATION Result Calculation

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 1 – LIST OF ACCOUNTS
LIABILITIES
CURRENT AND LONG-TERM PAYABLE
Obligations Linked to Direct Swaps
Dividends/Interest on Own Capital Belonging to Third Parties Fixed Income Title Revenues Belonging to Third Parties Portfolio Administration Fee Payable GERES Remuneration Payable Dividends/Interest on Own Capital to be Classified Other Obligations EQUITY Incentive Resources Unitholders Issued Shares Federal Government (-) Auction Operations Accumulated Results Results of Previous Exercises Exercise Results Profit/Loss of the Exercise Variation of Shares Swapped in Auctions Reverted Investment Certificates (DL. 1.752/79) COMPENSATION ACCOUNTS Values Deposited in Custody

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 1 – LIST OF ACCOUNTS
CREDIT INCOME ACCOUNTS
Operational Revenues
Remuneration on Availabilities and Deposits Linked to Subscription Fixed Income Title Revenues Basic Costs Financial Charges Charges on Delay (-) Delinquency Bonus Variable Income Title Revenues Premium on Sale of Titles in Auction Premium on Direct Sale of Titles Dividends/Interest on Own Capital Appreciation of Share Portfolio Income from Transfer Operations BANDES BANESTES Other Institutions Reversal of Provisions Fixed Income Titles Variable Income Titles Dividends/Interest on Own Capital to be Received Other Revenues to be Received Interbank Transfers Other Revenues RESULT CALCULATION Result Calculation

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: OPERATING BANK (BANDES, BASA or BNB) - FREELY MOVABLE DEPOSITS

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Availabilities
Function
Record the available resources with the operating bank.
Operation
3.1. Debited by the recording of received resources and appropriated earnings.
3.2. Credited by investments made and by reversals or returns of resources.
Subheadings
4.1. Income Tax
4.2. ICMS
Observations
a) The denomination of this account will include the name of the Fund's operating bank (BANDES, BASA or BNB). b) The subheadings of this account will be used exclusively by FUNRES, due to the nature of the resources that make up the availabilities of that Fund. c) The balance maintained in this account will be remunerated by the operating bank, as a debit to this account and as a credit to REMUNERATION ON AVAILABILITIES AND DEPOSITS LINKED TO SUBSCRIPTION, observing the monthly accrual regime.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: AUCTION OPERATIONS

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS – Values to be Received
Function
Record the values of sales, in current currency, relating to the titles comprising the Fund's portfolio, negotiated through special auctions, while pending settlement.
Operation
3.1. Debited by the recording of values to be received, in current currency, from the sale of portfolio titles.
3.2. Credited by the receipt of values for the settlement of operations carried out in auctions.
Subheadings
NIHIL
Observation
NIHIL

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: DEBTORS FOR TRANSFERS TO FINANCIAL AGENTS

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS – Interbank Transfers
Function
Record operations carried out under the transfer modality for financing.
Operation
3.1. Debited by the value of financing made and by the appropriation of financial charges.
3.2. Credited by the receipt or write-off of the transfer made.
Subheadings
4.1. BANDES
4.2. BANESTES
4.3. Other Institutions
Observation
a) This account and its subheadings are for the exclusive use of FUNRES, due to the specificity of some operations. b) FUNRES must adopt internal breakdowns to identify transfers by financed institutions. c) Transfers are made with FUNRES/ICMS resources, as provided in Resolution No. 586/91.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: PROVISION FOR LOSSES ON INTERBANK TRANSFERS

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS – Interbank Transfers – Corrective of the account Debtors for Transfers to Financial Agents.
Function
Record the balance of interbank transfers considered as doubtful settlement.
Operation
3.1. Debited by the reversal or write-off of the provision.
3.2. Credited by the constitution of the provision.
Subheadings
4.1. BANDES
4.2. BANESTES
4.3. Other Institutions
Observation
a) This account and its subheadings are for the exclusive use of FUNRES, due to the specificity of some operations. b) FUNRES must adopt internal breakdowns to identify provisions for transfers by financed institutions. c) Transfers are made with FUNRES/ICMS resources, as provided in Resolution No. 586/91. d) The rules for constituting the provision for doubtful collectibility credits are those defined for Fixed Income Titles.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: FIXED INCOME TITLES

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Securities and Financial Instruments
Function
Record the subscriptions made by the Funds in the form of Fixed Income Titles.
Operation
3.1. Debited by the recording of subscribed titles and appropriated earnings.
3.2. Credited by write-offs carried out.
Subheadings
4.1. Debentures of Own Portfolio
Debentures Convertible into Shares – Normal
Debentures Convertible into Shares – Overdue
Non-Convertible Debentures – Normal
In accordance with Law 8167/91
In accordance with Provisional Measure 2199/01 Non-Convertible Debentures – Overdue In accordance with Law 8167/91 In accordance with Provisional Measure 2199/01
4.2. Debentures Linked to Direct Swaps
Debentures Convertible into Shares
Non-Convertible Debentures
Observations
a) According to the nature of the resources that gave rise to the subscription of the titles, FUNRES will also use the following breakdowns: "INCOME TAX" and "ICMS". b) The non-convertible debentures of the own portfolio will be recorded in the breakdowns "In accordance with Law 8167/91" and "In accordance with Provisional Measure 2199/01", according to the respective legal device that gave them origin. c) The appropriation of earnings generated by fixed income titles is made as a debit to this account and as a credit to INCOME FROM FIXED INCOME TITLES (if titles of the own portfolio) and INCOME FROM FIXED INCOME TITLES BELONGING TO THIRD PARTIES (if titles linked to direct swaps), observing the monthly accrual regime.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: VARIABLE INCOME TITLES

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Securities and Financial Instruments
Function
Record the subscriptions made by the Fund in variable income titles.
Operation
3.1. Debited by the recording of subscribed titles and by the appreciation of the Portfolio shares.
3.2. Credited by the write-off of titles and by the devaluation of the Portfolio shares.
Subheadings
4.1. Own Portfolio Shares
4.2. Shares Linked to Direct Swaps
4.3. Units of Other Funds
Observations
a) In the subheading "Own Portfolio Shares", shares subscribed based on Article 4 of Decree-Law 1.376/74, resulting from the conversion of debentures subscribed in accordance with Article 5 of Law 8.167/91, as well as shares transferred, originating from investments in accordance with Art. 9 of Law 8.167/91, negotiable through Special Auctions held on Stock Exchanges, are recorded. b) In the subheading "Shares Linked to Direct Swaps", shares subscribed in accordance with Article 9 of Law 8.167/91, to be written off through direct swap with investors, are recorded. c) In the subheading "Units of Other Funds", subscriptions of units of other Regional Investment Funds are recorded.

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Securities and Financial Instruments - Corrective of Securities and Financial Instruments
Function
Record the values intended for the formation of a provision to cover probable losses in the realization of portfolio titles.
Operation
3.1. Credited by the recording of the constituted provision and adjustments for insufficient provision.
3.2. Debited by the values used to compensate for losses actually occurred or in cases of reversal.
Subheadings
4.1. Fixed Income Titles
4.2. Variable Income Titles
Observation
NIHIL

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Linked Credits
Function
Record the resources made available to beneficiary companies, from the authorizations of the Fund Management Bodies, and which are still pending subscription.
Operation
3.1. Debited by the recording of releases in favor of beneficiaries.
3.2. Credited by the subscription of released resources or by the cancellation of releases.
Subheadings
4.1. Income Tax
4.2. ICMS
Observation
a) The denomination of this account will include the name of the Fund's operating bank (BANDES, BASA or BNB). b) The subheadings of this account will be used exclusively by FUNRES, due to the nature of the resources that gave rise to the releases. c) The balance of this account represents the orders for release of resources pending subscription at the operating bank. d) The balance maintained in this account will be remunerated by the operating bank, as a debit to the account OPERATING BANK (BANDES, BASA OR BNB) - FREELY MOVABLE DEPOSITS and as a credit to REMUNERATION ON AVAILABILITIES AND DEPOSITS LINKED TO SUBSCRIPTION, observing the monthly accrual regime.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: JUDICIAL DEPOSITS

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Linked Credits
Function
Record the Fund's resources taken to deposit in court, with their movement subject to prior judicial authorization.
Operation
3.1. Debited by the values deposited in court and by the monetary update of these values.
3.2. Credited by transfers emanating from judicial process.
Subheadings
NIHIL
Observation
NIHIL

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: OTHERS

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS – Linked Credits
Function
Record other linked credits to which the Fund is entitled and which have not yet been received, that do not fit into the other items provided.
Operation
3.1. Debited by the recording of values of other linked credits to which the Fund is entitled to receive on the date they become available or aggregable to the value of realizable assets in currency.
3.2. Credited by the actual receipt of previously registered linked credits.
Subheadings
NIHIL
Observation
NIHIL

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
CHART OF ACCOUNTS OF REGIONAL INVESTMENT FUNDS
CHAPTER 2 – LIST OF ACCOUNTS
SECTION 2 – FUNCTION AND OPERATION OF ACCOUNTS
ACCOUNT: REVENUES TO BE RECEIVED

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Other Credits
Function
Record, in the trial balances and balance sheets, the revenues that have already become an effective right of the Fund and that have not yet been received.
Operation
3.1. Debited by the value of revenues to be received.
3.2. Credited by the receipt of revenues.
Subheadings
4.1. Dividends/Interest on Own Capital to be Received
Own Portfolio Shares
Shares Linked to Direct Swaps
4.2. Other Revenues to be Received
Observation
NIHIL

Classification
CURRENT AND LONG-TERM REALIZABLE ASSETS - Other Credits - Corrective of the account Revenues to be Received.
Function
Record the values intended for the formation of a provision to cover eventual distributions of dividends and interest on own capital not honored by the Fund's beneficiary companies, as well as to cover eventual expectations of losses of values registered in the item Other Revenues to be Received.
Operation
3.1. Credited by the recording of the constituted provision.
3.2. Debited in cases of reversal.
Subheadings
4.1. Dividends and Interest on Own Capital to be Received
4.2. Other Revenues to be Received
Observation
NIHIL

Classification
COMPENSATION ASSETS
Function
Record the titles maintained in custody at the Operating Bank.
Operation
3.1. Debited by the recording of titles in custody.
3.2. Credited by write-offs carried out.
Subheadings
NIHIL
Observation
a) The values of custodied titles will be accounted for by an index value defined by each Fund.

Classification
DEBIT INCOME ACCOUNTS - Operational Expenses
Subheadings
2.1. Discount on Sale of Titles in Auction
2.2. Discount on Direct Sale of Titles
2.3. Devaluation of Share Portfolio
2.1. Discount on Sale of Titles in Auction
2.1.1. Function: Record the negative difference between the negotiation value of titles in auction and their cost value.
2.1.2. Operation
2.1.2.1. Debited by the value of discounts calculated in auction operations.
2.1.2.2. Credited at the time of the balance sheet, for result calculation.
2.2. Discount on Direct Sale of Titles
2.2.1. Function: Record, at the time of the direct sale of Portfolio titles, the negative difference between the negotiation value of the titles and their cost value.
2.2.2. Operation:
2.2.2.1. Debited by the value of discounts calculated in the direct sale of titles.
2.2.2.2. Credited at the time of the balance sheet, for result calculation.
2.3. Devaluation of Share Portfolio
2.3.1. Function: Record the reductions in the evaluation value of the Fund's Portfolio shares.
2.3.2. Operation
2.3.2.1. Debited by the value of devaluations.
2.3.2.2. Credited at the time of the balance sheet, for result calculation.

CVM INSTRUCTION NO. 445, OF DECEMBER 14, 2006.
3. Observation
NIHIL

Classification
DEBIT INCOME ACCOUNTS - Operational Expenses
Function
Record the expenses with the fee due to the operating bank for the administration of the Fund's Portfolio.
Operation
3.1. Debited by the value of expenses incurred, paid or not.
3.2. Credited at the time of the balance sheet, for result calculation.
Subheadings
NIHIL
Observation
NIHIL